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FARMER BROTHERS CO [FARM], a leading coffee and tea company, has reported a net loss of $79.2 million for the year ended June 30, 2023. Despite revenue growth, the company faced challenges with operating expenses and other factors that impacted its financial performance.
The company's annual revenue for the year stood at $339.96 million, representing a 8.2% increase compared to the previous year's revenue of $314.78 million. However, the increase in revenue was not sufficient to offset the higher cost of goods sold, resulting in a decline in gross profit from $133.82 million to $114.61 million.
Despite the increase in revenue, Farmer Brothers Co experienced challenges in managing its operating expenses. The company reported selling expenses of $103.15 million, up from $99.46 million in the previous year. General and administrative expenses also remained high at $37.56 million. These higher expenses contributed to the overall loss from operations of $20.96 million.
The company's balance sheet reflects a decrease in total assets from $350.07 million to $187.78 million, primarily driven by a decrease in current assets. Current liabilities also decreased from $87.60 million to $85.36 million. However, long-term borrowings increased from $63 million to $23.02 million.
Basic and diluted earnings per share for the year were both reported as a loss of $4.04. This represents a significant decline compared to the previous year's loss per share of $0.89. The increase in the number of weighted average common shares outstanding from 18.20 million to 19.62 million partially contributed to this decline.
Looking ahead, Farmer Brothers Co aims to improve its financial performance by focusing on cost management and operational efficiency. The company will continue to invest in its product portfolio and marketing strategies to drive revenue growth. Additionally, it will explore opportunities to optimize its balance sheet and improve profitability.
Despite the challenges faced during the year, Farmer Brothers Co remains committed to delivering value to its shareholders and customers. With a strategic focus on enhancing financial stability and driving revenue growth, the company aims to regain profitability and strengthen its market position in the coffee and tea industry.