The following is a summary of the Farmer Bros. Co. (FARM) Q4 2024 Earnings Call Transcript:

Financial Performance:

• Farmer Bros. Co. reported a slight decrease in Q4 net sales to $84.4 million, down by 1% year-over-year mainly due to a decline in sales volume.

• For the full fiscal year 2024, the company reported a small increase in net sales to $341.1 million, up from $340 million in FY 2023, driven by stronger pricing despite a decrease in sales volume.

• Gross profit for Q4 improved by $5 million to $32.8 million with gross margins increasing to 38.8%. Full-year gross profit increased by $19.3 million to $133.9 million with gross margins also improving significantly to 39.3%.

• Net loss for Q4 improved substantially to $4.6 million from a previous $16.9 million, and annual net loss also improved to $3.9 million from $34 million in the prior year.

• Adjusted EBITDA for FY 2024 was positive at $558,000 compared to a $14.2 million loss in FY 2023.

Business Progress:

• Completed sale of direct ship business to concentrate on DSD business.

• Centralized roasting and production in Portland, Oregon and optimized physical footprint including moving headquarters and exiting Dallas, Fort Worth distribution center for network optimization.

• Instituted a new sales structure, SKU rationalization, and brand pyramid initiative to improve product availability and value proposition.

• Launched a major rebrand of Farmer Brothers and Boyd's, with plans to launch a specialty tier coffee brand.

Opportunities:

• Provided high-quality coffee and on-trend products designed to expand product penetration and attract new, profitable customers, utilizing a nationwide DSD network for extensive reach and impact.

Risks:

• Volatility in coffee pricing and other macroeconomic factors could affect financial performance in the future.

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