Staten Island, NY-based Coffee Holding Co. Inc. (Nasdaq: JVA) announced on Sep. 13 its operating results for its recent three and nine months, ended July 31, 2021.
Net sales totaled $13,634,313 for the three months, ended July 31, 2021, a decrease of $3,709,696, or 21.3%, from $17,344,009 for the three months ended July 31, 2020. Net sales totaled $56,725,386 for the nine months ended July 31, 2020, a decrease of $9,219,197, or 14%, from $65,944,583 for the nine months ended July 31, 2019.
The decrease in net sales was due to a 35% decline in cases shipped from the company’s largest production facility in Colorado, $2,500,000 decrease in sales from its Generations/Steep N Brew subsidiary, a decline in sales of green coffee during the first half of the year as many customers remained closed or impaired by continued COVID-19 restrictions.
Cost of sales for the three months ended July 31, 2021, was $10,708,461, or 78.5% of net sales, as compared with $13,517,482, or 77.9% of net sales, for the three months July 31, 2020.
Gross profit for the three months ended July 31, 2021, amounted to $2,925,852 or 21.5% of net sales, as compared with $3,826,527 or 22.1% of net sales, for the three months ended July 31, 2020.
Total operating expenses decreased by $12,918 to $3,239,317 for the three months ended July 31, 2021, from $3,252,235 for the three months ended July 31, 2020.
“Although we are disappointed with the results of the last three months, we believe we are extremely well positioned entering the fourth quarter to achieve stronger results. Our sales for the third quarter were consistent with other companies during this timeframe as supermarkets continued to wind down inventory levels which were ramped up over the last year due to COVID-19 and supply chain concerns,” stated Andrew Gordon, president and chief executive of Coffee Holding Co.
