DJ Farmer Bros 2Q Coffee Volumes Fall on Pandemic Impact -- Commodity Comment
By Mary de Wet
Farmer Bros. Co. saw its coffee volumes fall 27% in its fiscal second quarter as its direct store delivery network struggled amid Covid-19 pandemic restrictions on businesses and consumers.
On green coffee volumes:
In the second quarter, the volume of green coffee processed and sold fell to 21.4 million pounds from 29.4 million pounds a year ago, primarily due to the impact of the Covid-19 pandemic, according to the company, which roasts coffee and sells coffee, tea and culinary products.
On pandemic effect:
Net sales fell 31% to $104.6 million in the three months ended Dec. 31. "The decrease in net sales was driven primarily by lower sales of coffee, beverage and allied products sold through our DSD network due to the COVID-19 pandemic.
"During our fiscal first quarter ended September 30, 2020, sales from our DSD customers declined by 41% compared to prior year same quarter due to COVID-19.
"Although we experienced improvements early in the current quarter ended December 31, 2020 to where our weekly sales were down 32% from pre-COVID levels, due to the surge in the U.S. of COVID-19 cases later in the quarter, our DSD revenues deteriorated back to approximately 40% compared to prior year same quarter.
"The largest DSD revenue declines were from restaurants, hotels and casino channels. This still represents significant improvement since the worst effects on our business from COVID-19 in April 2020 when DSD sales were down by approximately 65% to 70%.
"Our direct ship sales declined 13% compared to the prior year period due to lower coffee volume related to COVID-19 and the impact of coffee prices for our cost plus customers, partially offset by improved volume from our retail business, key grocery stores under their private labels, and third party e-commerce platforms."
Write to Mary de Wet at firstname.lastname@example.org
(END) Dow Jones Newswires
February 04, 2021 17:06 ET (22:06 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.