earnings
confidence high
sentiment negative
materiality 0.60
Coffee Holding Q1 revenue down 7.9% to $16.7M; EPS falls to $0.05 from $0.12
COFFEE HOLDING CO INC
- Net sales $16.7M vs $18.1M YoY; decline driven by loss of customers at Steep N Brew subsidiary.
- Gross margin improved to 25.6% from 24.7%, but operating expenses increased $408K due to inflation and legal costs.
- EPS $0.05 (diluted) vs $0.12 YoY; adjusted EBITDA ~$804K including $190K non-cash stock option charge.
- CEO expects legal costs from class action lawsuits to decline in Q2/Q3, fully expensed by Q4.
- Inflationary headwinds in freight, labor, and steel prevented further margin expansion.