Coffee Holding Co., Inc. Reports Increased Net Income and Sales Growth for Six Months Ending April 30, 2026

Coffee Holding Co., Inc. reported its financial results for the six months ending April 30, 2026, showing a net income of $1.91 million, or $0.33 per share, compared to $1.80 million, or $0.31 per share, for the same period in 2025. The company's net sales increased by 6.9% to $47.69 million, up from $44.63 million in the prior year. This growth was attributed to higher sales to existing customers, new customer acquisitions, and a full six months of sales from the recently acquired Second Empire, which contributed positively to revenue despite the loss of sales from the Comfort Foods subsidiary.

In terms of operational performance, Coffee Holding's cost of sales for the six months was $38.08 million, representing 79.8% of net sales, a slight decrease from 80.69% in the previous year. The gross profit for the period was $9.61 million, or 20.2% of net sales, compared to $8.62 million, or 19.3% of net sales, in the prior year. The increase in gross profit percentage reflects improved operational efficiencies and a favorable sales mix, despite challenges in the market.

The company also reported a significant reduction in its line of credit, with outstanding balances decreasing from $6.05 million as of October 31, 2025, to $2.65 million by April 30, 2026. This reduction is indicative of improved cash flow management, as the company generated $6.65 million in net cash from operating activities during the first half of 2026, a stark contrast to the $1.56 million used in the same period last year. The increase in cash flow was primarily driven by reductions in inventory and accounts receivable.

Strategically, Coffee Holding has continued to focus on expanding its market presence and enhancing its product offerings. The acquisition of Second Empire in November 2024 has been integrated into its operations, allowing the company to expand its roasting and packing capabilities. The company has also made adjustments to its executive compensation structure, notably reducing the base salary of CEO Andrew Gordon while introducing a performance-based cash incentive, which aligns management's interests with shareholder value.

Looking ahead, Coffee Holding remains cautiously optimistic about its growth trajectory, emphasizing the importance of maintaining operational efficiencies and adapting to market conditions. The company plans to continue leveraging its diverse product lines and customer base to navigate the volatile coffee market, while also managing its financial covenants effectively to ensure compliance and support future growth initiatives.