Coffee Holding Co +29% Reveals Gross Profit Increase in Latest Operational Update

Destiny A. Lopez  |

For me, I often start my day with coffee. I have also been known to get a “pick me up” brew around mid day. Coffee, for many, is part of their morning routine. According to a Mintel Group data report, the retail U.S. coffee market alone is valued at an $48 billion. Domestic companies, like Coffee Holding (JVA), a U.S. based wholesale coffee roaster and dealer, aim to keep this market a fascinating and profitable sector.

Based in New York, Coffee Holding is a family-operated business on a mission to, according to its official website, offer a broad array of coffee products across the entire spectrum of consumer tastes, preferences and price points. This strategy, combined with its various coffee products being offered in domestic and international markets, has not only kept the doors open for three generations; but, continues to produce favorable results. Up +29.44% today, Coffee Holding has released its three and six month operations report, ending on April 30, 2016.

For the three month period, the company has reported an improved gross profit increasing 15.5% and improved margins in its wholesale and roasted business.

"We are again pleased to report positive results to our shareholders as we have now successfully achieved four consecutive profitable quarters,” said Andrew Gordon, President and CEO of Coffee Holding. “Although coffee prices continue to remain at levels where we do on occasion encounter outside competitive pressures, we still improved our profitability in our three key existing business areas. We have increased our efforts in moving away from a focus on commodity type sales of wholesale green coffee to a renewed focus by our green coffee sales team on branding, farm identification, traceability and sales of specialty gourmet micro lots of Arabica coffees, which has helped us sustain and improve our margins during a period of historically low green coffee prices.”

Furthermore, the company’s branded coffee, particularly its Cafe Caribe brand, has proven to be a hit amongst coffee drinkers. “In addition, sales of our flagship brand, Café Caribe, continue to increase in both existing and new markets,” said Gordon, “including our anticipated initial roll-out by Wal-Mart at an expected 400 stores later this month as well as an expected additional roll-out by a large regional supermarket chain at an expected 200 stores later this summer."

Since 1971, Coffee Holding has been a trusted name in the coffee sector. With four consecutive profitable quarters on the books, the company is positioned to focus on continued growth. "I know that our stockholders remain disappointed with our current share price but we believe we continue to make strides in the right direction," added Mr. Gordon. "We expect to continue to support our stock through strategic use of our existing buyback program and more importantly through future operating results and the operation of our business over the next several quarters," said Gordon.

For more information about Coffee Holding Co, visit www.coffeeholding.com.

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Companies

Symbol Name Price Change % Volume
JVA Coffee Holding Co. Inc. 4.21 0.00 0.00 15,586 Trade

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