Farmer Bros.: Reports Fiscal Q1-2023 Financial Results

Northlake / TX. (fbc) Farmer Bros. Company reported financial results for its first fiscal quarter ended September 30, 2022.

First Quarter Fiscal 2023 Highlights

  • Net sales were USD 121.4 million, an increase of USD 13.0 million, or 12.0 percent, from the prior year period
  • Gross margin in the period was 22 percent compared to 29 percent in the prior year period,
  • Net loss was USD 7.4 million compared to a net loss of USD 2.4 million in the prior year period
  • Adjusted Ebitda loss of USD 4.9 million compared to adjusted Ebitda income of USD 3.5 million in the prior year period
  • As of September 30, 2022, total debt outstanding was USD 114.0 million and cash and equivalents were USD 7.6 million

Deverl Maserang, Chief Executive Officer, commented, «Sales momentum continued in our fiscal first quarter, with revenue up 12 percent year-over-year despite a worsening economic backdrop,» said Deverl Maserang, Chief Executive Officer. «Profitability levels reflect an unusual combination of pricing-related, seasonal and inflationary pressures on our sales and gross margins, a number of which are short-term in nature and beginning to reverse in the current second fiscal quarter, with substantial margin recovery already underway.»

«As we navigate the current headwinds, we continue to make good progress on our growth strategy, including delivering new customer wins and renewals, executing on our alternative beverage platform with key new partnerships and building momentum with our espresso programs at Revive. While we are mindful of the highly uncertain macroeconomic environment and are managing spending and our balance sheet carefully, our streamlined operating platform combined with multiple growth opportunities in a normalizing post-Covid business environment position Farmer to rebuild performance momentum looking ahead.»