Coffee Holding Co., Inc. (Nasdaq: JVA) announced its operating results for the fiscal quarter ended July 31, 2025.
The company had net sales of $23.9M for the three months ending July 31, 2025, showing a 27% increase compared to the same period in 2024.
Despite the sales increase, the company experienced a net loss of $1.19M primarily due to the negative impact of $2.2M from derivative positions.
Sales Increase
Net sales for the quarter showed a significant 27% growth compared to the previous year.
Derivative Impact
Derivative positions had a notable negative impact on profitability, resulting in a net loss for the period.
Future Expectations
Anticipated improvement in profitability in the fourth quarter with the reversal of unrealized losses on derivatives and expected dividend announcement based on year-end profits.
- The quarter faced challenges due to the decline in coffee prices influenced by global factors like tariffs and market uncertainty.
- Despite the difficult period, the company's operations remained robust with successful acquisitions and expectations of continued profitability.
- Future strategy may include implementing tariffs to maintain margins following the depletion of 'tariff-free' inventories and aligning with industry practices.
Amidst challenges in the coffee market, Coffee Holding Co., Inc. remains optimistic about future profitability and strategic initiatives. The company's resilience and focus on maintaining margins reinforce its position in the industry.