Farmer Bros.: Reports Q4 Fiscal 2022 Financial Results

Northlake / TX. (fbc) Farmer Bros. Company reported financial results for its fourth quarter and fiscal year ended June 30, 2022.

Fourth Quarter Highlights

  • Net sales were USD 123.0 million, an increase of USD 20.1 million, or 20 percent, from the prior year period due to notable improvement in the direct-store-delivery (DSD) and Direct Ship channels
  • Gross margin increased to 28.4 percent from 27.6 percent in the prior year period
  • Net loss was USD 3.8 million compared to USD 4.0 million in the prior year period
  • Adjusted Ebitda was USD 6.1 million compared to USD 3.4 million in the prior year period*
  • As of June 30, 2022, total debt outstanding was USD 108.6 million and cash and cash equivalents was USD 9.8 million

Fiscal 2022 Highlights

  • Net sales were USD 469.2 million, an increase of USD 71.3 million, or 18 percent, from the prior year due to continued improvement in DSD and Direct Ship channels
  • Gross margin expanded to 29.2 percent showing marked improvement from 25.4 percent in the prior year
  • Net loss was USD 15.7 million compared to a net loss of USD 41.7 million in the prior year
  • Adjusted Ebitda was USD 19.1 million compared to USD 16.6 million in the prior year*
  • Successfully completed key initiatives within the Company’s optimization strategy, including:
    • Increased production and packaging capacity at the Northlake, Texas facility;
    • Efficiently served our West Coast network from the newly opened Rialto, California distribution center;
    • Optimized DSD network for revenue growth and distribution optimization; and
    • Launched Revive Service and Restoration for service excellence in commercial brewing equipment (CBE)

CEO Deverl Maserang: «Our fourth quarter and fiscal year-end marks the beginning of our inflection from business recovery to renewed growth. Q4 sales grew 20 percent, gross margin expanded by 80 basis points, and Adjusted Ebitda increased 79 percent over the prior year Q4, as our optimized platform began demonstrating the operating leverage we’ve built into the business. Though economic uncertainty remains a modest near-term restraint on our progress, we believe we’re now turning the corner and moving into a more normalized business environment. Sales are gaining momentum, and we are executing new growth opportunities to expand our platform in multiple directions. Overall, we are excited to see that many of our optimization initiatives have materialized as our current growth-facing initiatives begin to take hold. We remain optimistic about where we can take Farmer Brothers in our fiscal 2023 year and the years to come.»