A renewed focus on direct store delivery has helped lift Farmer Brothers to a total of US$81.9 million in net sales in its Q1 report for 2024 ending 30 September 2023.
The increase compares favourably to the same time period last year, which saw net sales for the U.S. coffee roaster, wholesaler, and distributor reach US$79.8 million.
“Farmer Brothers executed well in the fiscal first quarter as we continue to transition our focus solely to our largest and most profitable business – direct store delivery,” says Farmer Brothers Interim CEO John Moore.
“We are taking the internal steps necessary to strengthen our balance sheet, reduce our overall cost structure and increase our gross margins.”
Gross profit during the quarter increased to US$30.8 million compared to US$27.0 million during the same quarter in 2022.
Operating expenses were US$32.9 million during the quarter, up from US$27.8 million in Q1 2023.
“Supported by favourable coffee pricing trends, we expect we will continue to see momentum and improving results throughout the fiscal year,” says Moore.
“We believe we are on track to achieve our goal of positive free cash flow in early fiscal 2025, setting the stage for a revitalised Farmer Brothers and creating long-term shareholder value.”
In a letter sent to shareholders, the company says it is continuing to see improvements in its cost structure and overall operational efficiency.
To access the full quarterly report, click here.