Coffee Holding Co., Inc. Reports $3.9 Million Net Income for Nine Months Ending July 31, 2026

Coffee Holding Co., Inc. reported its financial results for the nine months ending July 31, 2026, showing a net income of $3.9 million, or $0.68 per share, compared to a net income of $591,898, or $0.10 per share, for the same period in the previous year. The company's net sales increased slightly to $69.4 million from $68.5 million, driven by higher sales to existing customers and new customer acquisitions. The cost of sales decreased to $54.3 million, representing 78.3% of net sales, down from 83.8% in the prior year, contributing to a gross profit of $15 million, up from $11.1 million.

In the most recent quarter, Coffee Holding experienced a decline in net sales to $21.7 million, a decrease of 9.3% from $23.9 million in the same quarter last year. This decline was attributed to lower green coffee prices, prompting the company to reduce prices for its wholesale roasted coffee customers. Despite the drop in sales, the cost of sales also decreased significantly, leading to a gross profit of $5.4 million, up from $2.3 million in the prior year, primarily due to favorable inventory positions and tariff refunds.

The company has made strategic moves to enhance its operations, including the acquisition of Empire Coffee Company in November 2024, which has been integrated into its financial results. Additionally, Coffee Holding has focused on maintaining compliance with financial covenants related to its line of credit, which was reduced to $2.15 million as of July 31, 2026, down from $6.05 million the previous year. The company reported a working capital surplus of $25.5 million, indicating a strong liquidity position.

Operationally, Coffee Holding has seen improvements in its engagement metrics, with a notable increase in gross profit margins. The company has also streamlined its operational expenses, which decreased slightly to $10 million for the nine-month period, reflecting effective cost management strategies. The company’s employee headcount remained stable, supporting its operational needs without significant increases in overhead costs.

Looking ahead, Coffee Holding remains optimistic about its growth prospects, emphasizing its ability to navigate market volatility and expand its customer base. The company plans to continue leveraging its diverse product offerings and strategic acquisitions to enhance profitability. Management has indicated that they will focus on maintaining a favorable inventory position and optimizing their hedging strategies to mitigate risks associated with fluctuating coffee prices.