Company Reports FY25 Revenue of $96.3M, Up 23% YoY

Reports FY25 revenue $96.3M, up 23% y/y. The company states: "Although we successfully increased our revenues by 23% during a turbulent period of market volatility, tariffs and consumer unhappiness with higher retail prices, our net income was negatively affected for multiple reasons. The impact of tariffs during the second half of fiscal 2025 resulted in a negative cash balance of approximately $1 million as we attempted to shield our largest wholesale and retail customers from these tariffs. Had these costs from tariffs been passed on, it would have increased our selling price to the end consumer and possibly made us uncompetitive compared to the national brands at store level. Now, with the tariffs on coffee imports eliminated, we do not anticipate a repeat of this cost imbalance in fiscal 2026. In addition to the tariffs, our first full year of integrating and operating our new venture, Empire Coffee Company, resulted in an aggregate loss of over $1 million. The integration of Empire Coffee Company through our subsidiary, Second Empire, LLC, was a disappointment as it took several months longer than expected to win back Empire Coffee Company's customers and to set up and manufacture existing Coffee Holding products at the acquired facility. With the closing of the Comfort Foods facility in October of 2025, we believe we will achieve the economies of scale from an operational and manufacturing standpoint that we envisioned when we decided to acquire the Empire Coffee facility. Moving into fiscal 2026, we believe that without these headwinds faced during the previous fiscal year, we should see expanded gross margins on our retail and wholesale business, especially our flagship brand, Cafe Caribe."