Farmer Bros Co
NASDAQ:FARM
Farmer Bros Co
Farmer Brothers Co. engages in the manufacture, wholesale, and distribution of coffee, tea, and culinary products. The company is headquartered in Los Angeles, California and currently employs 1,064 full-time employees. The Company’s product lines include organic, Direct Trade and sustainably produced coffee. The firm with a line of coffee, hot and iced teas, cappuccino mixes, spices, and baking/biscuit mixes delivers beverage planning services and culinary products to its United States-based customers. The firm serves a range of customers from small independent restaurants and foodservice operators to institutional buyers like restaurant, department and convenience store chains, hotels, casinos, healthcare facilities and gourmet coffee houses, as well as grocery chains with private brand coffee and consumer branded coffee and tea products, and foodservice distributors. Its product categories consist of roast and ground coffee, frozen liquid coffee; flavored and unflavored iced and hot teas; culinary products; spices, and other beverages including cappuccino, cocoa and granitas.
Farmer Brothers Co. engages in the manufacture, wholesale, and distribution of coffee, tea, and culinary products. The company is headquartered in Los Angeles, California and currently employs 1,064 full-time employees. The Company’s product lines include organic, Direct Trade and sustainably produced coffee. The firm with a line of coffee, hot and iced teas, cappuccino mixes, spices, and baking/biscuit mixes delivers beverage planning services and culinary products to its United States-based customers. The firm serves a range of customers from small independent restaurants and foodservice operators to institutional buyers like restaurant, department and convenience store chains, hotels, casinos, healthcare facilities and gourmet coffee houses, as well as grocery chains with private brand coffee and consumer branded coffee and tea products, and foodservice distributors. Its product categories consist of roast and ground coffee, frozen liquid coffee; flavored and unflavored iced and hot teas; culinary products; spices, and other beverages including cappuccino, cocoa and granitas.
Sales Decline: Net sales fell 1% year-over-year to $88.9 million, as both revenue and coffee pounds sold declined modestly.
Profitability Pressure: Adjusted EBITDA dropped sharply to $0.5 million from $5.9 million last year, mainly due to higher green coffee costs.
Gross Margin Drop: Gross margin was 36.3%, down 680 basis points from the prior year, though still above 35%.
Cost Management: Operating costs fell by $1.4 million, driven by lower personnel expenses.
Net Loss: The company posted a $4.9 million net loss versus $0.2 million of net income a year ago.
Near-Term Outlook: Management expects gross margins to remain pressured through fiscal 2026 but sees possible relief starting in Q4 if commodity markets remain favorable.
Strategic Review: The strategic committee continues to assess options to maximize shareholder value, with updates to come when appropriate.
