Torrance, California – Farmer Bros. Co. (NASDAQ: FARM) recently held its Q4 2024 Earnings Conference Call on September 12, 2024, at 5:00 PM ET. The call featured President and CEO, John Moore, and CFO, Vance Fisher, among others. Participants included analysts from ROTH Capital and Craig-Hallum Capital Group. The call, focusing on the company’s fiscal fourth quarter and full-year 2024 earnings, was recorded for future reference.
During the call, Farmer Bros. Co. highlighted its recent financial performance, announcing its Form 10-K filing and issuing a press release detailing its fourth quarter and full-year earnings. The company emphasized the unaudited nature of the financial information presented and the forward-looking statements made during the call. Management also discussed non-GAAP financial measures, such as adjusted EBITDA and adjusted EBITDA margin, in assessing the company’s operational performance.
CEO John Moore shared the company’s recent transformative initiatives, such as the sale of the direct ship business to Treehouse Foods and the focus on the more profitable Direct Store Delivery (DSD) business. The company optimized its value chain, enhanced operational efficiency, and centralized roasting and production efforts in Portland, Oregon, leading to cost savings and improved customer service capabilities. The strategic adjustments made are expected to deliver significant savings in fiscal 2025.
Furthermore, Farmer Bros. Co. discussed its strengthened foundation for growth through restructuring within the sales organization, addressing out-of-stock issues, and implementing SKU rationalization and brand pyramid initiatives. The company’s focus on DSD has provided a flexible platform for future growth and better margin protection, especially during market fluctuations. The brand pyramid offers customers options across traditional, premium, and specialty coffee tiers nationwide.
CFO Vance Fisher provided detailed insights into the financial results for Q4 and fiscal year 2024. Despite a slight decrease in net sales for the fourth quarter, gross margins improved significantly, leading to enhanced profitability. Operating expenses were carefully managed, resulting in improved adjusted EBITDA and a positive outlook for future financial performance. The company remains adequately capitalized to support operations in fiscal 2025 and aims to achieve positive free cash flow.
Farmers Bros. Co. expressed optimism about future growth opportunities, emphasizing the importance of driving top-line growth, providing high-quality coffee products, and meeting customer demands. The company’s focus on product penetration, customer retention, and new brand launches demonstrates its commitment to value creation and sustainable profitability. As Farmer Bros. continues to optimize processes and leverage its DSD network, it aims to capitalize on industry trends and consumer preferences for continued success.
In conclusion, Farmer Bros. Co. acknowledged the efforts of its teams in navigating significant changes and expressed gratitude for their dedication. The company remains vigilant of potential challenges, such as commodity markets and macroeconomic factors impacting financial performance. With a clear roadmap towards positive growth and profitability, Farmer Bros. Co. looks forward to achieving its goals and creating long-term value for shareholders.
