7 October 2024
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Market + Management

Farmer Bros.: Reports Fiscal Q3-2024 Financial Results

Northlake / TX. (bc) Farmer Bros. Company reported its fourth quarter and full year fiscal 2024 financial results for the period ended June 30, 2024. «This past year was a transformative one for Farmer Brothers,» said President and Chief Executive Officer John Moore. «The decision to sell our direct ship business and focus on our more profitable DSD business helped significantly improve our gross margins and drive adjusted Ebitda profitability and overall operational efficiency. While we are proud of the significant progress we have made to date, there is still much more to be done as we complete our SKU rationalization and brand pyramid efforts, further streamline our operations and focus on driving customer growth and retention. We remain confident we are building a foundation which will generate long-term, sustainable growth and value creation for our shareholders.»

Fiscal 2024 business highlights

  • Strengthened executive team with appointments of President and Chief Executive Officer John Moore and Chief Financial Officer Vance Fisher.
  • Concluded its co-manufacturing agreement with TreeHouse Foods as part of the sale of its direct ship business and made significant progress on transition to focus on direct store delivery (DSD) business.
  • Streamlined operations by restructuring sales organization, reducing SKU redundancies and centralizing production in Portland, Oregon.
  • Upgraded technology infrastructure to enhance customer service, pricing approach and inventory management capabilities.

Fourth quarter fiscal 2024 financial results

  • Net sales were USD 84.4 million for the fourth quarter of fiscal 2024, a decrease of USD 1.1 million, or 1 percent, compared to the fourth quarter of fiscal 2023.
  • Gross profit for the fourth quarter of fiscal 2024 was USD 32.8 million, or 38.8 percent, compared to gross profit of USD 27.8 million, or 32.5 percent, for the fourth quarter of fiscal 2023.
  • Net loss for the fourth quarter of fiscal 2024 was USD 4.6 million, compared to a net loss of USD 16.9 million for the fourth quarter of fiscal 2023. The USD 4.6 million net loss for the fourth quarter of fiscal 2024 included a USD 1.1 million of gain from the sale of assets and USD 400,000 of non-cash stock compensation. The USD 16.9 million net loss for the fourth quarter of fiscal 2023 included a USD 2.5 million loss from the sale of assets and USD 2.1 million of non-cash stock compensation.
  • Adjusted Ebitda was a loss of USD 1.6 million for the fourth quarter of fiscal 2024, an increase of USD 5.6 million, compared to the fourth quarter of fiscal 2023.

Full year fiscal 2024 financial results

  • Net sales for fiscal 2024 were USD 341.1 million, an increase of USD 1.1 million, or 0.3 percent, compared to fiscal 2023.
  • Gross profit for fiscal 2024 was USD 133.9 million compared to USD 114.6 million in fiscal 2023. Gross margin increased 560 basis points in fiscal 2024 to 39.3 percent, compared to 33.7 percent in fiscal 2023.
  • Net loss for fiscal 2024 was USD 3.9 million, compared to a net loss of USD 34 million for fiscal 2023. The USD 3.9 million net loss for fiscal 2024 included a USD 18.1 million gain from sale of assets, USD 3.8 million of non-cash stock compensation, USD 3 million of severance costs and a USD 1.2 million loss related to sale of business. The USD 34 million net loss for fiscal 2023 included a USD 5.1 million gain from the sale of assets, USD 8.2 million of non-cash stock compensation, USD 1.6 million of severance costs and USD 1.9 million of gain related to the settlement of the Boyd’s acquisition.
  • Adjusted Ebitda was USD 558,000 for fiscal 2024, an increase of USD 14.7 million compared to fiscal 2023.

Balance Sheet and Liquidity: As of June 30, 2024, the company had USD 5.8 million of unrestricted cash and cash equivalents, USD 23.3 million in outstanding borrowings and USD 27.8 million of borrowing availability under its revolving credit facility.


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