Farmer Brothers ( (FARM) ) has released its Q3 earnings. Here is a breakdown of the information Farmer Brothers presented to its investors.
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Farmer Brothers Coffee Co., a prominent national coffee roaster and distributor, specializes in providing coffee, tea, and culinary products to a diverse range of U.S.-based customers, including restaurants, hotels, and grocery chains.
In its third quarter fiscal 2025 earnings report, Farmer Brothers reported net sales of $82.1 million, a slight decrease from the previous year, but highlighted a gross margin increase to 42.1%. Despite a net loss of $5 million, the company achieved an improved adjusted EBITDA of $1.7 million, marking its third consecutive quarter of positive adjusted EBITDA.
Key financial metrics revealed a gross profit of $34.5 million, with operating expenses rising to $38.1 million, primarily due to decreased net gains from asset disposals. The company also completed its brand pyramid and SKU rationalization initiative with the launch of its specialty brand, Sum>One Coffee Roasters, and made strategic leadership changes, including the promotion of Travis Young to vice president of field operations.
Looking ahead, Farmer Brothers remains focused on streamlining operations and enhancing efficiencies to navigate the challenging market environment. The company believes its tiered go-to-market strategy, bolstered by the new specialty brand, will continue to differentiate it in the competitive coffee industry.