Coffee Holding 2025 Q2 Earnings Strong Turnaround as Net Income Surges 3048.8%

Coffee Holding reported its fiscal 2025 Q2 earnings on Jun 13th, 2025. The company demonstrated a significant turnaround with net income of $644,055, a 3048.8% positive swing from the net loss of $-21,841 in 2024 Q2. Coffee Holding's revenue increased by 22.8%, reaching $23.32 million, surpassing expectations. The company raised its guidance, anticipating enhanced future results due to recent price increases and favorable inventory positioning.

Revenue
Coffee Holding experienced a substantial 22.8% rise in total revenue for Q2 2025, amounting to $23.32 million, compared to $19 million in the previous year. The green coffee segment contributed $9.36 million, while packaged coffee saw revenues of $13.96 million, cumulatively driving the overall growth.

Earnings/Net Income
Coffee Holding maintained stable EPS at $0.11 in 2025 Q2 compared to 2024 Q2. Meanwhile, the company achieved a remarkable turnaround with net income of $644,055 in 2025 Q2, representing a 3048.8% positive swing from the net loss of $-21,841 in 2024 Q2. The consistent EPS reflects a strong financial performance.

Price Action
The stock price of Coffee Holding has edged up 2.05% during the latest trading day, has edged up 1.53% during the most recent full trading week, and has jumped 12.75% month-to-date.

Post-Earnings Price Action Review
Coffee Holding's strategy of purchasing shares following a quarter of revenue growth and holding for 30 days resulted in a 30.28% return, underperforming the benchmark by 31.01%. The strategy's compound annual growth rate was 9.28%, with a significant maximum drawdown of -74.75%, indicating considerable volatility. Despite moderate returns, the Sharpe ratio of 0.11 suggests that the risk-adjusted performance was not optimal. The strategy's effectiveness may be challenged by external market conditions and the inherent volatility within the coffee sector, underscoring the importance of strategic adjustments to enhance future returns.

CEO Commentary
"We are pleased to report another quarter of strong results to our shareholders," said Andrew Gordon, President and CEO of Coffee Holding Company Inc. Earnings increased to $0.11 per share, and revenues grew by 22% compared to the second quarter of 2024. Despite challenges, including losses from a major wholesale customer due to prior contractual obligations, the company maintained a 19% gross margin. Gordon noted that strategic price increases are now in effect, which should positively impact future profitability. The performance of recently acquired Empire Coffee Company has also shown promising signs of recovery.

Guidance
The company anticipates that the recent price increases will enhance future results, with management expressing optimism about a slight tailwind entering the third quarter due to favorable inventory positioning ahead of potential tariffs. Forward-looking statements indicate confidence in revenue growth, with expectations set for the Empire Coffee Company to become accretive to earnings by the next quarter. Additionally, the resumption of annual dividends reflects improved free cash flow and working capital, reinforcing the company's positive outlook for the remainder of the fiscal year.

Additional News
Coffee Holding Co., Inc. has recently announced the resumption of its annual dividend policy, distributing 33% of net earnings, reflecting improved free cash flow and working capital. Additionally, the company's acquisition of Empire Coffee Company has shown promising progress, with management expecting it to become accretive to earnings by the next quarter. Furthermore, Coffee Holding strategically increased inventory positions during market selloffs, securing lower-cost inventory, which provides a competitive advantage against potential tariffs and enhances future profitability.