Gross Margin Improvement
Gross margins ended the year above 43%, representing a more than $14 million year-over-year improvement in adjusted EBITDA and a 420 basis point increase compared to the prior year.
Debt Reduction and Cash Flow
The company significantly paid down debt, ending the year with $6.8 million in unrestricted cash and cash equivalents and a $10 million decrease in net debt. Free cash flow generation improved significantly, with a $34.5 million year-over-year increase for the full fiscal year.
Operational Efficiency Gains
Farmer Brothers captured internal efficiency gains from manufacturing, sales, and network optimization initiatives. Decreases in SG&A expenses were achieved, and a new CRM tool was launched to enhance customer analytics.
Successful Launch of Sum>One Brand
The launch of the Sum>One specialty brand was completed, with early promising opportunities and collaborations with larger customers to launch branded cafe experiences.
Leadership and Structural Improvements
Appointments of Brian Miller in sales and Travis Young in field operations helped separate responsibilities, align KPIs, and improve execution.