Business
Farmer Brothers reports second quarter fiscal 2024 financial results and publishes quarterly shareholder letter
Fiscal Q2 2024 net sales of $89.5 millionGross margin increase of 550 basis points year-over-year to 40.4% NORTHLAKE, Texas, Feb. 08, 2024 (GLOBE NEWSWIRE) --
About this update from Farmer Brothers Company
[{"type":"text","content":"Fiscal Q2 2024 net sales of $89.5 millionGross margin increase of 550 basis points year-over-year to 40.4% NORTHLAKE, Texas, Feb. 08, 2024 (GLOBE NEWSWIRE) -- Farmer Brothers (NASDAQ: FARM) today reported its second quarter fiscal 2024 financial results for the period ended Dec. 31, 2023. The company filed its Form 10-Q and published its quarterly shareholder letter, which contains additional details regarding the results. Both of those documents can be found on the Investor Relations section of the company’s website. “As we continue to transition our company to focus solely on what we have always done best – direct store delivery (DSD), we are pleased to see early momentum in several of our operational and financial metrics,” said President and Chief Executive Officer John Moore. “We delivered meaningful improvements in gross margin and adjusted EBITDA during the quarter, with our gross margin rising above 40% for the first time in more than a year. Although we do not expect our progress to be linear, we believe we will continue to see long-term improvement and are well on our way to being free cash flow1 positive by early fiscal 2025.” 1 Free cash flow is a non-GAAP measure defined as net cash (used in) provided by operating activities less capital expenditures. Financial resultsSecond quarter fiscal 2024 net sales increased $600,000 to $89.5 million compared to $88.9 million in the second quarter of fiscal 2023. Overall, net sales were positively impacted by higher pricing compared to prior periods, but were offset by a decrease in coffee and allied products volume. Gross margin increased 550 basis points on a year-over-year basis to 40.4% compared to 34.9% for the second quarter of fiscal 2023. Gross profit during the quarter increased $5.1 million to $36.1 million, or 16% on a year-over-year basis, compared to $31 million for the second quarter of fiscal 2023. The increase in gross margin was primarily due to improved pricing and a decrease in underlying commodity cost compared to the prior year. Operating expenses decreased $2.6 million from $34.3 million in the second quarter of fiscal 2023 to $31.7 million in the second quarter of fiscal 2024. We saw a $1.1 million increase in general and administrative (G&A) expense and a $2.5 million increase in selling expense, which was offset by a $6.2 million increase in net gains ...