Northlake / TX. (fbc) Farmer Bros. Company reported financial results for its fourth quarter and fiscal year ended June 30, 2018.
Fourth Quarter Fiscal 2018 Highlights
- Volume of green coffee processed and sold increased by 4.1 million pounds, reaching 27.4 million pounds, a 17.7 percent increase over the prior year period;
- Gross profit increased USD 9.8 million to USD 52.6 million and gross margin increased 320 basis points to 35.2 percent over the prior year period;
- Net income was USD 0.1 million compared to net loss of USD (1.8) million in the prior year period; and
- Adjusted Ebitda was USD 14.0 million compared to USD 6.8 million in the prior year period.
- Successfully added 4.1 million pounds of green coffee and USD 18.2 million in net sales related to the acquisition of Boyd Coffee Company («Boyd»).
Fiscal 2018 Highlights
- Volume of green coffee processed and sold increased by 11.9 million pounds, reaching 107.4 million pounds, a 12.5 percent increase over the prior year;
- Gross profit increased USD 20.2 million to USD 207.0 million and gross margin decreased 40 basis points to 34.1 percent in fiscal 2018;
- Net loss was USD (18.3) million in fiscal 2018 compared to net income of USD 22.6 million in fiscal 2017, primarily driven by the sale of the Torrance facility in fiscal 2017; and
- Adjusted Ebitda was USD 47.6 million compared to USD 43.0 million in the prior year.
«We had a solid fourth quarter and achieved Adjusted Ebitda results for the fiscal year in line with our expectations,» said Mike Keown, President and CEO. «As we closed out the year, our team continued to execute our strategy focused on leveraging the investments we have made in our roasting facilities, expanding our distribution network, adding new customers, and increasing business with existing customers. We ended fiscal 2018 having made terrific progress on the integration of the Boyd business, bringing a large portion of the production into our facilities and transitioning all Boyd DSD routes to our network. We added over 13 million pounds of green coffee to our business in fiscal 2018 from Boyd’s – about 12 percent of our total volume for the year. In addition, we are continuing to convert new customers in our pipeline following the SQF certification of our Northlake, Texas facility earlier this year. As we look forward, we are excited about our ability to capitalize on growth opportunities in the dynamic coffee industry.»