Business Overview
Coffee Holding Co., Inc. is a wholesale coffee company that manufactures, roasts, packages, and distributes roasted and blended coffees under private labels and proprietary brands, along with green coffee sales and coffee roaster manufacturing. During the six months ended April 30, 2026, the company acquired the remaining assets of Empire Coffee Company through its subsidiary Second Empire for $800,000, establishing a new roasting and packing operation. The company operates as a single reporting segment with three product lines: Wholesale Green Coffee, Private Label Coffee, and Branded Coffee, serving supermarkets, wholesalers, and specialty coffee retailers primarily throughout the United States.
Segment Performance
The company operates as a single reporting segment. For the six months ended April 30, 2026 versus 2025: Net Sales increased to $47.7 million from $44.6 million; Gross Profit rose to $9.6 million from $8.6 million; Operating Income increased to $2.7 million from $2.5 million; and Net Income grew to $1.9 million from $1.8 million. For the three months ended April 30, 2026 versus 2025: Net Sales decreased to $22.1 million from $23.3 million; Gross Profit declined to $3.5 million from $3.7 million; Operating Income fell to $342K from $889K; and Net Income dropped to $262K from $644K. Green coffee revenue declined from $18.3 million to $16.8 million (six months), while Packed coffee revenue increased from $26.4 million to $30.9 million (six months).
Key Risk Factors
Key risks include commodity price volatility in green coffee, managed through limited use of futures and options contracts that can impact earnings volatility; reliance on a concentrated customer base of supermarkets and wholesalers; the line of credit maturing on December 28, 2026, requiring renewal or refinancing; compliance with financial covenants on debt facilities; and exposure to international supply chain disruptions given reliance on imported green coffee beans from around the world.
