Farmer Bros. Net Loss Widens

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Farmer Bros. Co. on Monday said that despite higher sales, its fiscal first quarter net loss widened more than 500 percent from a year ago due to continued volatility in the green coffee market, higher commodity and fuel prices and significant losses in the coffee maker’s investment portfolio.

Torrance based Farmer Bros. reported a net loss of $6.1 million (-42 cents per share) compared with a net loss of $1 million (-7 cents) a year ago. Net sales increased 9 percent to $66.5 million.

The company, an institutional coffee roaster that sells coffee and related products to the food service industry and private-label retailers, recorded a loss in its portfolio of preferred stocks and other financial assets of $9.9 million. Operating expenses increased $4 million as a result of higher freight and employee costs of $2.6 million.

“Although we are encouraged by the continuing trend of rising revenues, we are not pleased with our operating results,” said Chief Executive Rocky Laverty in a statement. “We are increasingly cautious about our outlook as we anticipate the effects of a softening economy and lower consumer spending.”

Farmer Bros. shares were down 4 cents, or less than 1 percent, to $20.45 in morning trading on the Nasdaq.

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