In a quarter marked by volatility in global coffee markets, Coffee Holding Co., Inc. (NASDAQ: JVA) has reported strong financial performance for the second quarter of fiscal year 2025. The company achieved a 22% year-over-year revenue increase and returned to profitability, posting earnings of $0.11 per share—up from a slight loss in the same quarter last year.
Despite headwinds such as surging green coffee prices, delayed margin recovery, and contractual losses on a key wholesale account, Coffee Holding maintained a stable gross margin of 19%. The company also succeeded in reducing its selling and administrative expenses, a move that signals improved operational efficiency and potential for sustained margin growth in future quarters.
“Our ability to grow revenue while improving cost efficiency demonstrates the strength of our business model,” said Andrew Gordon, CEO of Coffee Holding Co. “Even with pricing pressures and a challenging macro environment, we’ve positioned ourselves for long-term profitability.”
A key contributor to the company’s growth was the implementation of strategic price adjustments in response to early 2025’s rapid rise in arabica coffee prices, which surged over 25% in just three weeks. Although these increases took time to reflect in financial results, the full impact is now materializing and is expected to support margins moving forward.
Another factor shaping the company’s strategy was speculation in April about potential tariffs on imported coffee. While the market reacted with a sharp price decline, Coffee Holding used the opportunity to expand its inventory at lower prices, gaining cost advantages that are expected to provide a competitive edge in the months ahead.
In addition, the company’s acquisition of Empire Coffee Company—rebranded as Second Empire—is already exceeding expectations. Losses from this unit were halved compared to the previous quarter, and sales have rebounded to pre-decline levels. Coffee Holding now anticipates that the acquisition will become earnings-accretive by the end of the next quarter.
In a milestone decision, the company announced the reinstatement of its annual dividend—33% of net earnings—marking the first dividend issuance in years. The move reflects growing confidence in free cash flow and overall financial stability.
Founded in 1971, Coffee Holding Co. is one of the few vertically integrated coffee companies in the United States, serving retailers and wholesalers through a portfolio of eight proprietary brands and a diversified range of coffee products. The company also imports green coffee from major producing countries, supplying small roasters and specialty cafés across the U.S. and Canada.
As the global coffee industry continues to navigate fluctuating prices, trade policies, and evolving consumer behavior, Coffee Holding Co.’s latest results offer a compelling case of resilience and adaptability—qualities that many industry stakeholders are closely watching.