Boston, MA 03/14/2014 (wallstreetpr) – Coffee Holding Co. Inc. (NASDAQ:JVA) has reported its results for the three months ending January 31, 2014 in which net income came in at $1.37 million or $0.22 per share compared to a net income of $937, 537 reported for the same period last year. The increase in net income was as a result of increased profitability in sales.
The period was mired by depressed coffee prices which continue to hurt the industry and consequently caused a 13% decline in total revenues. Coffee holding growth metrics continue to be solid, evidenced by positive results in three key areas of wholesale green coffee sales, branded as well as private label sales.
Net sales for the period came in at $27.35 million a decline of 13% compared to a high of $31.32 million reported for the same period in 2013. The decrease in net sales was negatively impacted by a decline in coffee prices as prices hit a seven year low. This was on the other hand offset by a 13.7% increase in pounds of green coffee.
Coffee Holding Co. Inc. (NASDAQ:JVA) cost of sales for the period ending January 31, 2014 came in at $23.23 million representing 84.9% of the total net sales compared to $27.64 million reported for the same period in 2013. The decline in cost of sales was as a result of a lower prices paid for green coffee.
Coffee Holding Co. Inc. (NASDAQ:JVA) gross profit for the period surged to a high of $4.12 million compared to a gross profit of $3.68 million reported for the same period ending January 31, 2013. Gross profit as percentage of net sales was up by 3.3% for the three months. The increase in gross margins was a reflection of gains in hedging activities and lower prices paid for green coffee during the period.
The company’s operating expenses was down by 1.3% coming in at $1.87 million compared to operating expenses of $1.89 million for the three months ending January 31, 2013. A decline in selling and administrative expenses of $54,629 was cited as the reason behind the drop in total operating expenses.
