Coffee Holding Co., Inc. Reports 23% Increase in Net Sales for Fiscal Year Ending October 31, 2025

Coffee Holding Co., Inc. reported a significant increase in financial performance for the fiscal year ending October 31, 2025, with net sales reaching $96.3 million, a 23% increase from $78.6 million in the previous year. This growth was attributed to higher sales from legacy customers and new customer acquisitions. However, the cost of sales also rose to $80.9 million, or 84% of net sales, compared to 80% in the prior year, primarily due to increased sales volume, higher salaries, and rising packaging costs. Consequently, gross profit decreased to $15.4 million, representing 16% of net sales, down from 20% the previous year, largely due to tariff costs impacting margins.

Operationally, the company has made strategic moves, including the acquisition of Empire Coffee in November 2024 for $800,000, which is expected to enhance its production capabilities. The closure of the Comfort Foods facility in North Andover, Massachusetts, was completed in October 2025, with production transitioning to the Second Empire facility in Port Chester, New York. This consolidation aims to improve operational efficiency and reduce overhead costs. As of October 31, 2025, Coffee Holding employed 92 full-time staff, maintaining stable employee levels despite operational changes.

The company’s investment strategy also included a passive investment of $850,000 in The Ryl Company LLC, which reflects its ongoing efforts to diversify and strengthen its market position. Despite these developments, Coffee Holding faced challenges, including a decrease in income before taxes to $1.9 million from $3.1 million in the previous year, primarily due to increased tariff costs and operational losses from the newly acquired Second Empire.

Looking ahead, Coffee Holding aims to leverage its diverse product offerings and strategic acquisitions to capture additional market share, particularly among Latin consumers with its Café Caribe and Café Supremo brands. The company plans to continue expanding its geographic reach and product lines while managing costs effectively. However, it remains cautious about the volatility of coffee prices and the potential impact of global economic conditions on its operations. The company’s management has acknowledged the need for improved internal controls over financial reporting, which they are actively addressing to enhance operational integrity and financial accuracy.