| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 22.13 | 13.4% | 5.1% |
| Total Income | 22.13 | 13.4% | 5.1% |
| Expenditure | 21.78 | 6.1% | 2.9% |
| PBT | 0.30 | 87.0% | 65.5% |
| Net Profit | 0.26 | 84.2% | 59.4% |
| OPM | 1.55% | 7.75pp | 2.26pp |
| NPM | 1.19% | 5.26pp | 1.58pp |
| EPS | 0.05 | 82.8% | 54.5% |
Coffee Holding Co., Inc. Reports Second Quarter Results for the Period Ended April 30, 2026
13 Jun 2026 · 13 Jun, 1:58 am
Summary
Coffee Holding Co., Inc. reported net sales of $22,126,156 for the second quarter ended April 30, 2026, a decrease of 5.1% year-over-year, primarily due to a decline in green coffee prices. Cost of sales as a percentage of net sales slightly increased to 84.2% from 84.0% in the prior year. Gross profit decreased by $243,104 to $3,487,068, with gross profit margin at 15.8%. Net income for the quarter was $262,489, or $0.05 per share, down from $644,055, or $0.11 per share, in the same period last year. Management noted that the decline in green coffee prices severely impacted results but also presents opportunities for increased margins on new business and existing brands.
Key Highlights
- 1
Net sales for the three months ended April 30, 2026, totaled $22,126,156, a decrease of 5.1% from the prior year period.
- 2
Cost of sales was $18,639,088, or 84.2% of net sales, compared to 84.0% in the prior year period.
- 3
Gross profit for the three months ended April 30, 2026, was $3,487,068, a decrease of $243,104 from the prior year period.
- 4
Total operating expenses increased by $303,015 to $3,144,572 for the three months ended April 30, 2026.
- 5
The Company reported a net income of $262,489, or $0.05 per share basic and diluted, for the three months ended April 30, 2026.
- 6
Net income for the three months ended April 30, 2025, was $644,055, or $0.11 per share basic and diluted.
Management Comments
Andrew Gordon
Our second quarter results were severely impacted by the steady and rapid decline in the green coffee market which began in the final week of January and continued unabated for the entire quarter. A 25% decline in the commodity price for coffee had a negative effect on the price we were able to sell our green coffee inventory to our roaster wholesale customers which not only impacted profitability, but also negatively impacted sales volumes; as customers took a ‘wait and see’ approach on coffee purchases. We also promoted more than anticipated in addition to lowering costs to some of our large retail customers in order to maintain anticipated sales forecasts in some of these customers. Fortunately, the national brands held their current list pricing in place which allowed us to do the same, somewhat mitigating the potential impairment to our anticipated profit margins. Also, the decrease in the green coffee market does have a silver lining as we were recently awarded some substantial new business which we now will be able to service at increased margins due to new lower input costs in addition to expected increased profit margins on our Cafe Caribe brand. We plan to continue to focus on reducing inventories over the next several months as we believe the historical high in the price of green coffee over the last two years is now in the rear-view mirror and, as result, we do not believe there is a need for carrying extra inventory coverage. Even with the adverse coffee commodity pricing we have experienced, we believe we are still well positioned to maintain profitability for the balance of 2026.
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