By Denny Jacob
Shares of Farmer Bros. surged 18% to $3.69 in afterhours trading following a profitable quarter for the coffee, tea, and culinary products manufacturer.
Positive Financial Results
Farmer Bros. announced net income of $2.7 million, or 13 cents a share, for the fiscal second quarter ended Dec. 31. This marks a significant improvement from a loss of $13.6 million, or 73 cents a share, in the same period a year ago. Sales also saw a slight increase, rising to $89.5 million from $88.9 million.
Factors Affecting Sales
While higher pricing from previous periods had a positive impact on sales, this increase was offset by a decrease in coffee and allied product volume compared to the previous year.
Focus on Future Improvement
Looking ahead, Farmer Bros. is focused on further improving its performance in the second half of the fiscal year. The company plans to work on enhancing its cost structure and driving customer growth and retention.
Despite acknowledging that results might not be consistently strong on a quarterly basis, Chief Executive John Moore and interim Chief Financial Officer Brad Bollner expressed confidence in the company’s ability to generate sustainable top-line growth.