| Metric | Value ($ M) | Q2 FY26 | Q3 FY25 |
|---|---|---|---|
| Revenue | 21.69 | 2.0% | 9.3% |
| Total Income | 21.69 | 2.0% | 9.3% |
| Expenditure | 19.36 | 11.1% | 22.6% |
| PBT | 2.29 | 663.3% | 292.4% |
| Net Profit | 1.99 | 665.4% | 264.5% |
| OPM | 10.72% | 9.17pp | 15.30pp |
| NPM | 9.19% | 8.01pp | 14.23pp |
| EPS | 0.35 | 600.0% | 266.7% |
Coffee Holding Co., Inc. Reports Third Quarter Results
11 Sept 2026 · 11 Sept, 6:41 pm
Summary
Coffee Holding Co., Inc. announced its operating results for the fiscal quarter ended July 31, 2026. Net sales decreased by 9.3% to $21,686,262, primarily due to a decline in green coffee prices. However, cost of sales as a percentage of net sales decreased to 75.0% from 90.6%, leading to a substantial increase in gross profit to $5,424,131 and a gross profit margin of 25.0%. The company achieved a net income of $1,993,438, or $0.35 per share, a significant turnaround from a net loss in the prior year, driven by a favorable inventory position, tariff refunds, and a net gain on trading activity. Management expressed optimism about future growth, citing strong fundamentals, expected additional tariff refunds, and secured new business.
Key Highlights
- 1
Net sales for the three months ended July 31, 2026, totaled $21,686,262, a decrease of 9.3% from the prior year period.
- 2
Cost of sales decreased to $16,262,131, representing 75.0% of net sales, compared to 90.6% in the prior year period.
- 3
Gross profit for the three months ended July 31, 2026, was $5,424,131, an increase of $3,169,103 from the prior year period.
- 4
Gross profit as a percentage of net sales improved significantly to 25.0% for the three months ended July 31, 2026, from 9.4% in the prior year period.
- 5
The Company reported a net income of $1,993,438, or $0.35 per share, for the three months ended July 31, 2026, a significant improvement from a net loss of $1,205,413 in the prior year period.
- 6
Tariff refunds received during the quarter contributed approximately $0.06 per share to earnings.
Management Comments
Andrew Gordon
In what can only be described as the most volatile three months in the history of the coffee market, with the price of green coffee trading in a $1.00/per lb. trading range with daily price fluctuations reaching an unprecedented $.50/lb., we are pleased to report our shareholders that we had net sales of approximately $21.7 million and earnings of $0.35 a share. Although revenues were comparable to those achieved in fiscal 2025, our profitability was greatly improved as a result of a combination of supporting fundamentals provided a strong tailwind during the reporting period. We were fortunate to have capitalized on the lower green physical coffee market during the first half of calendar 2026 which allowed for the record gross margins we achieved during fiscal Q3 2026. The decision not to charge most wholesale roasted customers tariffs during 2025 proved to be the correct one as we retained 100% of our roasted customer base and maintained our historical profit margins throughout the last several quarters. Now, with tariffs being slowly refunded, we are reaping the rewards for our earlier decisions as the tariff refunds received during the quarter contributed approximately $.06 a share to our earnings and we expect additional refunds to enhance earnings over the next two quarters. Overall, with the continued volatility in the green coffee market showing no clear signs of abating, and the major leading national brands showing no indication of price decreases, as well as significant new business that we have recently secured, we believe we are well positioned moving through the end of calendar 2026 into calendar 2027 to grow our revenue levels, gross margins and our profitability.
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