Coffee Holding Co. Q2 Profit Plummets Amid Coffee Price Crash

Coffee Holding Co. Reports Sharp Q2 Profit Drop Amid Coffee Price Plunge

Coffee Holding Co., Inc. (Nasdaq: JVA) announced a significant downturn in its operating results for the fiscal quarter ending April 30, 2026. The company experienced a 5.1% decline in net sales and a notable drop in net income, primarily due to a severe fall in green coffee prices.

The Numbers Breakdown

• Net sales decreased to $22,126,156 from $23,320,061 in the prior year.
• Gross profit fell by $243,104 to $3,487,068, with the gross profit margin shrinking to 15.8% from 16.0%.
• Net income for the quarter was $262,489 ($0.05 per share), a sharp decrease from $644,055 ($0.11 per share) in Q2 2025.
• The green coffee commodity market saw a 25% decline, severely impacting profitability and sales volumes.

Market Challenges and Strategic Response

President and CEO Andrew Gordon stated the quarter’s results were heavily influenced by the 25% drop in green coffee commodity prices, which began in late January. This decline led to reduced selling prices for both wholesale roasted and green coffee, along with increased promotional activities.

Customers adopted a ‘wait and see’ approach to purchases, further impacting sales volumes. Despite these challenges, Coffee Holding Co. maintained current list pricing for national brands, helping to mitigate potential profit margin impairment.

Outlook: New Business and Future Profitability

Looking ahead, the company has secured substantial new business. This new venture is expected to operate at increased margins due to lower input costs and anticipated higher profit margins on its Cafe Caribe brand.

Mr. Gordon confirmed plans to reduce inventories, believing that historical high green coffee prices are now behind them. The company anticipates maintaining profitability for the remainder of 2026.