Coffee Holding swings to profit as margins recover

Coffee Holding ($JVA) reported third-quarter net income of approximately $2 million, or $0.35 per share, compared with a $1.2 million loss a year earlier. Revenue fell 9.3% to $21.7 million as lower green-coffee prices and customer pricing adjustments reduced the sales value.

Gross margin expanded to 25% from 9.4%, supported by a favorable inventory position, tariff refunds and a swing to gains in trading activity. Operating expenses also declined to approximately $3.1 million from $3.35 million. The improvement is therefore principally a margin and cost story rather than evidence of higher sales volumes. Inventory economics, commodity movements and tariff recoveries all contributed, and the release does not establish that the same mix of benefits will repeat every quarter.

Sources:

• Coffee Holding — quarterly release, GlobeNewswire via StockTitan