Marley Coffee Reports 187 Percent Revenue Increase For Second Quarter 2014
Marley Coffee reports financial results for the three and six months ended July 31, 2013 and 2012, including increases in revenue, gross profit and gross profit margins, as well as improvements in net loss for the fiscal second quarter and six months ended July 31, 2013, compared to the fiscal second quarter and six months ended July 31, 2012.
The company reported that the revenue for the 2014 second fiscal quarter (i.e., the three months ended July 31, 2013) increased 187 percent to $1.6 million versus $559 thousand compared with fiscal second quarter 2013. For the six-month period ended July 31, 2013, revenue increased 179 percent to $2.4 million compared with $869 thousand in the year-ago six-month period.
The gross profit increased to $472 thousand in the 2014 second fiscal quarter compared with $67 thousand in the year-ago second fiscal quarter. For the six months ended July 31, 2013, gross profit was $971 thousand compared with $142 thousand in the year-ago six-month period. The gross profit margins increased to 29.4 percent in the second quarter of fiscal 2014 from 11.9 percent in the year-ago second fiscal quarter.
Operating expenses decreased during the second fiscal quarter 2014 to $867 thousand from $1.0 million in the year-ago second fiscal quarter, and to $1.7 million for the six months ended July 31, 2013 from $2.0 million in the year-ago six-month period.
The net loss decreased to $715 thousand, or $0.01 per share for the second fiscal quarter of 2014, compared with a $986 thousand net loss, or $0.01 per share, in the year-ago second fiscal quarter. For the six-month period ended July 31, 2013, net loss was $1.1 million, or $0.01 per share compared with $1.9 million or $0.02 per share in the year-ago six-month period.
The company increased retailer penetration to 7,500 locations as of July 31, 2013, compared with 500 locations at the end of the second quarter last year. It also generated distribution with several leading supermarket chains and retail outlets including Kroger, Safeway, Shaw's, Star Market, Winn-Dixie/ BI-LO, Market Basket and Best Buy/Future Shop of Canada.
The company freed up more than $3.7 million in two tranches through Ironridge Global IV, Ltd. for the settlement of trade payables and to help finance Marley Coffee's rollout to national and regional chains. It acquired Black Rock Beverage Services, expanding the company's business into the office coffee and food service markets and moved its corporate headquarters to Denver, Colo.
"We are extremely pleased with the traction that Marley Coffee has made in the marketplace and the improved brand awareness that has increased our footprint with some of the largest and most successful retail grocery chains and consumer electronics chains in North America," said Rohan Marley, founder and chairman, in a prepared statement. "Our goal is to continue to increase our distribution network in both domestic and international markets, introduce innovative new products and increase the number of SKUs carried by our customers throughout this fiscal year and into fiscal 2015.
"As revenues increase, we also expect to continue to benefit from economies of scale and margin expansion as we seek to capitalize on the significant trend and growing consumer awareness toward organic, sustainable premium and super-premium specialty coffees, and specifically, greater awareness and demand for our brand," he continued.
