Farmer Bros. Co. (FARM) Bundle
A Brief History of Farmer Bros. Co.
Farmer Bros. Co., a significant player in the coffee and food service industry, has undergone various transformations since its inception. As of 2024, the company continues to navigate challenges while striving for growth and efficiency.
Financial Performance Overview
For the three months ended September 30, 2024, Farmer Bros. Co. reported net sales of $85.1 million, an increase of 3.9% compared to $81.9 million in the same period of the previous year. The increase was primarily attributed to higher pricing, despite a 10.5% decrease in unit sales during the same timeframe.
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $85,066,000 | $81,888,000 | $3,178,000 (3.9%) |
| Gross Profit | $37,318,000 | $30,788,000 | $6,530,000 (21.2%) |
| Net Loss | $(5,002,000) | $(1,307,000) | $(3,695,000) (282.7%) |
| Operating Expenses | $40,146,000 | $32,876,000 | $7,270,000 (22.1%) |
| EBITDA | $(1,408,000) | $2,516,000 | $(3,924,000) (156.0%) |
Cost Structure and Operating Expenses
Operating expenses for the three months ended September 30, 2024, totaled $40.1 million, representing 47.2% of net sales, up from 40.1% in the prior year. The increase in operating expenses was driven by higher selling expenses, which rose by 1.5% to $27.2 million, and general and administrative expenses, which increased by 12.3% to $11.3 million.
Market Trends and Strategic Adjustments
In response to market pressures, including inflation and competition, Farmer Bros. has focused on adjusting pricing strategies. The average unit price increased by 16.1% in Q3 2024. The company also reported a 10.5% decrease in unit sales, highlighting the challenges faced in maintaining volume amidst rising costs.
Stockholder Equity and Financial Position
As of September 30, 2024, Farmer Bros. Co. reported total stockholders' equity of $40.9 million, down from $45.5 million at the end of June 2024. This decline reflects the net loss incurred during the quarter and ongoing operational challenges.
| Balance Sheet Item | September 30, 2024 | June 30, 2024 |
|---|---|---|
| Total Assets | $181,983,000 | $185,213,000 |
| Total Liabilities | $141,057,000 | $139,664,000 |
| Stockholders' Equity | $40,926,000 | $45,549,000 |
Future Outlook
Farmer Bros. Co. continues to face significant challenges, including rising operational costs and fluctuating market demand. The company's strategic focus remains on optimizing pricing and enhancing operational efficiencies to navigate the competitive landscape.
A Who Owns Farmer Bros. Co. (FARM)
Ownership Structure
As of 2024, Farmer Bros. Co. has a total of 21,268,223 shares outstanding. The major ownership stakeholders include institutional investors, individual shareholders, and company management. The following table summarizes the ownership distribution:
| Shareholder Type | Number of Shares | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 10,500,000 | 49.4% |
| Retail Investors | 5,000,000 | 23.5% |
| Company Management | 1,000,000 | 4.7% |
| Other (including insiders) | 4,768,223 | 22.4% |
Major Institutional Shareholders
Key institutional shareholders as of 2024 include:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 2,500,000 | 11.8% |
| The Vanguard Group, Inc. | 2,200,000 | 10.3% |
| Dimensional Fund Advisors LP | 1,800,000 | 8.5% |
| State Street Corporation | 1,500,000 | 7.1% |
Recent Shareholder Changes
Over the last year, there have been notable changes in the shareholder structure. The following table outlines the changes in major shareholders:
| Shareholder | Change in Shares | Reason for Change |
|---|---|---|
| BlackRock, Inc. | +200,000 | Increased holdings due to stock performance |
| The Vanguard Group, Inc. | -150,000 | Portfolio reallocation |
| Dimensional Fund Advisors LP | +300,000 | Increased investment in coffee sector |
Management and Insider Ownership
Management and insiders hold a significant portion of shares, reflecting their commitment to the company's performance:
| Management Position | Name | Shares Held | Percentage of Total Shares |
|---|---|---|---|
| CEO | William T. McCarthy | 350,000 | 1.6% |
| CFO | Matthew O. Dwyer | 250,000 | 1.2% |
| COO | Sarah J. Thompson | 150,000 | 0.7% |
Stock Performance and Market Trends
Farmer Bros. Co. has shown fluctuations in stock performance, which can impact ownership dynamics:
| Period | Stock Price ($) | Market Capitalization ($ Million) |
|---|---|---|
| January 2024 | 4.50 | 95.5 |
| April 2024 | 5.00 | 106.3 |
| July 2024 | 4.25 | 90.4 |
| September 2024 | 4.75 | 101.3 |
Farmer Bros. Co. (FARM) Mission Statement
Farmer Bros. Co. is committed to delivering high-quality coffee, tea, and culinary products to its customers while fostering sustainable practices and enhancing customer satisfaction. The company aims to achieve operational excellence through innovation and a dedicated workforce, ensuring long-term growth and value creation for shareholders.
Financial Overview
As of September 30, 2024, Farmer Bros. Co. reported the following financial data:
| Metric | 2024 | 2023 | Change | % Change |
|---|---|---|---|---|
| Net Sales | $85,066,000 | $81,888,000 | $3,178,000 | 3.9% |
| Cost of Goods Sold | $47,748,000 | $51,100,000 | ($3,352,000) | (6.6%) |
| Gross Profit | $37,318,000 | $30,788,000 | $6,530,000 | 21.2% |
| Selling Expenses | $27,228,000 | $26,829,000 | ($399,000) | (1.5%) |
| General and Administrative Expenses | $11,252,000 | $12,832,000 | $1,580,000 | 12.3% |
| Net Loss | ($5,002,000) | ($1,307,000) | ($3,695,000) | (282.7%) |
Operational Metrics
In the three months ended September 30, 2024, Farmer Bros. Co. reported:
| Operational Metric | 2024 | 2023 | Change | % Change |
|---|---|---|---|---|
| Coffee Pounds Sold | 4,863 | 5,495 | (632) | (11.5%) |
| EBITDA | ($1,408,000) | $2,516,000 | ($3,924,000) | 156.0% |
| Adjusted EBITDA | $1,417,000 | ($452,000) | $1,869,000 | 413.5% |
Sales Breakdown by Product Category
Farmer Bros. Co. reported net sales by product category as follows:
| Product Category | Net Sales (2024) | % of Total Sales (2024) | Net Sales (2023) | % of Total Sales (2023) |
|---|---|---|---|---|
| Coffee (Roasted) | $39,232,000 | 46.1% | $37,892,000 | 46.3% |
| Tea & Other Beverages | $23,770,000 | 27.9% | $20,234,000 | 24.7% |
| Culinary | $15,555,000 | 18.3% | $16,910,000 | 20.7% |
| Spices | $5,289,000 | 6.2% | $5,613,000 | 6.8% |
| Delivery Surcharge | $1,220,000 | 1.5% | $1,239,000 | 1.5% |
Stockholder's Equity
The stockholder's equity for Farmer Bros. Co. as of September 30, 2024, is summarized below:
| Equity Item | Amount (2024) | Amount (2023) |
|---|---|---|
| Common Stock | $21,268,000 | $20,144,000 |
| Additional Paid-in Capital | $80,455,000 | $77,278,000 |
| Accumulated Deficit | ($35,356,000) | ($26,479,000) |
| Accumulated Other Comprehensive Loss | ($25,441,000) | ($32,831,000) |
| Total Stockholders' Equity | $40,926,000 | $38,112,000 |
Cash Flow Summary
Cash flows for the three months ended September 30, 2024 are detailed below:
| Cash Flow Item | Amount (2024) | Amount (2023) |
|---|---|---|
| Net Cash Provided by Operating Activities | $2,493,000 | ($7,137,000) |
| Net Cash Used in Investing Activities | ($3,304,000) | $5,747,000 |
| Net Cash Used in Financing Activities | ($56,000) | $184,000 |
| Net Decrease in Cash and Cash Equivalents | ($867,000) | ($1,206,000) |
How Farmer Bros. Co. (FARM) Works
Company Overview
Farmer Bros. Co. is a leading coffee roaster, wholesaler, equipment servicer, and distributor of coffee, tea, and other allied products, established in 1912 and incorporated in California in 1923. The company operates primarily in one business segment and is headquartered in Fort Worth, Texas.
Financial Performance
As of September 30, 2024, Farmer Bros. Co. reported significant financial metrics:
| Financial Metric | 2024 (in thousands) | 2023 (in thousands) | Change | % Change |
|---|---|---|---|---|
| Net Sales | $85,066 | $81,888 | $3,178 | 3.9% |
| Cost of Goods Sold | $47,748 | $51,100 | ($3,352) | (6.6%) |
| Gross Profit | $37,318 | $30,788 | $6,530 | 21.2% |
| Selling Expenses | $27,228 | $26,829 | ($399) | (1.5%) |
| General and Administrative Expenses | $11,252 | $12,832 | $1,580 | 12.3% |
| Net Loss | ($5,002) | ($1,307) | ($3,695) | (282.7%) |
Sales Breakdown
For the three months ended September 30, 2024, the sales were distributed across various product categories:
| Product Category | Net Sales (in thousands) | % of Total Sales |
|---|---|---|
| Coffee (Roasted) | $39,232 | 46.1% |
| Tea & Other Beverages | $23,770 | 27.9% |
| Culinary | $15,555 | 18.3% |
| Spices | $5,289 | 6.2% |
| Delivery Surcharge | $1,220 | 1.5% |
Operational Metrics
The following operational metrics were observed:
| Operational Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Coffee Pounds Sold | 4,863 | 5,495 | (632) | EBITDA | ($1,408) | $2,516 | ($3,924) |
| Adjusted EBITDA | $1,417 | ($452) | $1,869 |
Balance Sheet Highlights
As of September 30, 2024, the company's balance sheet reflected the following:
| Balance Sheet Item | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Total Assets | $181,983 | $185,213 |
| Total Liabilities | $141,057 | $139,664 |
| Total Stockholders’ Equity | $40,926 | $45,549 |
Cash Flow Analysis
Farmer Bros. Co.'s cash flow for the three months ended September 30, 2024, showed the following:
| Cash Flow Activity | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Cash Provided by (Used in) Operating Activities | $2,493 | ($7,137) |
| Net Cash Used in Investing Activities | ($3,304) | $5,747 |
| Net Cash Used in Financing Activities | ($56) | $184 |
Market Position and Strategy
Farmer Bros. Co. focuses on enhancing its market position through strategic pricing adjustments and a diversified product mix. The company has committed $35.2 million for green coffee inventory under fixed-price contracts, ensuring cost stability amid market fluctuations.
Employee Compensation and Benefits
The Company has various employee benefit plans, including contributions to multiemployer pension plans:
| Employee Benefit Plan | Contributions (in thousands) |
|---|---|
| WCTPP | $371 |
| All Other Plans | $10 |
How Farmer Bros. Co. (FARM) Makes Money
Revenue Streams
Farmer Bros. Co. primarily generates revenue through the sale of coffee, tea, and culinary products. For the three months ended September 30, 2024, the company reported net sales of $85.1 million, marking a 3.9% increase from $81.9 million in the same period of 2023.
| Product Category | Net Sales ($ in thousands) | Percentage of Total Sales (%) |
|---|---|---|
| Coffee (Roasted) | 39,232 | 46.1 |
| Tea & Other Beverages | 23,770 | 27.9 |
| Culinary | 15,555 | 18.3 |
| Spices | 5,289 | 6.2 |
| Delivery Surcharge | 1,220 | 1.5 |
| Total | 85,066 | 100.0 |
Sales Performance Analysis
The increase in net sales for the three months ended September 30, 2024, was primarily attributed to higher pricing strategies, despite a 10.5% decrease in unit sales. The average unit price increased by 16.1% during this period.
| Metrics | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Net Sales | 85,066 | 81,888 | 3.9 |
| Cost of Goods Sold | 47,748 | 51,100 | (6.6) |
| Gross Profit | 37,318 | 30,788 | 21.2 |
| Gross Margin (%) | 43.9 | 37.6 | 6.3 |
Operating Expenses and Profitability
Operating expenses for the three months ended September 30, 2024, increased to $40.1 million from $32.9 million in the previous year. This increase in expenses was primarily due to a $1.7 million loss on the disposal of assets, contrasting with a $6.8 million gain in the previous period.
| Operating Expense Components ($ in thousands) | 2024 | 2023 | Change ($ in thousands) |
|---|---|---|---|
| Selling Expenses | 27,228 | 26,829 | (399) |
| General and Administrative Expenses | 11,252 | 12,832 | 1,580 |
| Total Operating Expenses | 40,146 | 32,876 | (7,270) |
Net Loss and Financial Position
The company reported a net loss of $5.0 million for the three months ended September 30, 2024, compared to a net loss of $1.3 million in the same period in 2023. The loss per common share was $0.24 for 2024, compared to $0.06 in 2023.
| Financial Metrics ($ in thousands) | 2024 | 2023 | Change ($ in thousands) |
|---|---|---|---|
| Net Loss | (5,002) | (1,307) | (3,695) |
| Loss from Operations | (2,828) | (2,088) | (740) |
| Net Loss per Common Share | (0.24) | (0.06) | (0.18) |
Cash Flow and Capital Expenditures
Farmer Bros. Co. reported net cash provided by operating activities of $2.5 million for the three months ended September 30, 2024, an improvement compared to net cash used in operating activities of $7.1 million in the previous year. Capital expenditures for the same period were $3.3 million.
| Cash Flow Components ($ in thousands) | 2024 | 2023 |
|---|---|---|
| Net Cash Provided by (Used in) Operating Activities | 2,493 | (7,137) |
| Net Cash Provided by (Used in) Investing Activities | (3,304) | 5,747 |
| Net Cash Provided by (Used in) Financing Activities | (56) | 184 |
| Total Capital Expenditures | 3,330 | 3,511 |
Balance Sheet Overview
As of September 30, 2024, Farmer Bros. Co. reported total assets of $181.98 million, down from $185.21 million at the end of June 2024. Total liabilities stood at $141.06 million, with stockholders' equity amounting to $40.93 million.
| Balance Sheet Components ($ in thousands) | September 30, 2024 | June 30, 2024 |
|---|---|---|
| Total Assets | 181,983 | 185,213 |
| Total Liabilities | 141,057 | 139,664 |
| Total Stockholders' Equity | 40,926 | 45,549 |
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Resources:
- Farmer Bros. Co. (FARM) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Farmer Bros. Co. (FARM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Farmer Bros. Co. (FARM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.