Coffee Holding Co. Reports 20% Revenue Growth to $25.57 Million

Coffee Holding Co., Inc. reported a significant increase in financial performance for the three months ending January 31, 2026, with net sales reaching $25.57 million, a 20% increase from $21.31 million in the same period last year. The company's gross profit also rose to $7.03 million, up from $5.73 million, maintaining a gross profit margin of 27%. Net income for the quarter was $1.65 million, or $0.29 per share, compared to $1.15 million, or $0.20 per share, in the prior year. This growth was attributed to higher sales to existing customers, new customer acquisitions, and a full quarter of sales from the recently acquired Second Empire.

In terms of operational changes, Coffee Holding Co. experienced a notable shift in its cost structure. The cost of sales increased to $18.54 million, consistent at 73% of net sales, primarily due to higher sales volume and increased costs associated with salaries and packaging materials. The company reported a gain of approximately $376,338 from its hedging activities, a decrease from the previous year's gain of $1.74 million, reflecting the volatility in the coffee market. Operating expenses also rose to $4.65 million, driven by increased selling and administrative costs.

The company’s balance sheet showed total assets of $41.15 million as of January 31, 2026, a slight decrease from $42.05 million at the end of October 2025. Current liabilities decreased to $10.95 million, down from $12.81 million, while total liabilities fell to $12.39 million from $14.47 million. Stockholders' equity increased to $28.76 million, up from $27.58 million, reflecting retained earnings growth. The company maintained a working capital of $22.55 million, indicating a stable liquidity position.

Strategically, Coffee Holding Co. has focused on expanding its market presence through acquisitions, including the purchase of Empire Coffee Company in November 2024. This acquisition is expected to enhance the company’s operational capabilities and customer base. The company also continues to manage its line of credit effectively, with an outstanding balance of $2.65 million as of January 31, 2026, down from $6.05 million previously. The company is in compliance with its financial covenants and does not foresee substantial doubt regarding its ability to continue as a going concern.

Looking ahead, Coffee Holding Co. aims to leverage its diverse product offerings and strategic acquisitions to drive growth. The company plans to continue its focus on customer retention and acquisition while managing costs effectively. However, it remains cautious about the volatility in coffee prices and the potential impact of its hedging strategies on profitability. The management is optimistic about maintaining operational efficiencies and enhancing market share in the competitive coffee industry.