Farmer Bros Co (FARM) 2025 Q2 法說會逐字稿

Good afternoon and welcome to the Farmer Brothers Fiscal Second Quarter, 2025 Earnings Conference Call.

下午好，歡迎參加 Farmer Brothers 2025 財年第二季財報電話會議。

At this time all participants are in listen-only mode as a reminder, this call is being recorded today. The company filed its Form 10-Q and issued its Second Quarter Results press release which are available in the Investor Relations section of Farmer Brothers website at farmerbros.com

此時所有參與者都處於只聽模式，提醒一下，今天正在錄製此通話。該公司提交了 10-Q 表並發布了第二季度業績新聞稿，可在 Farmer Brothers 網站 farmerbros.com 的投資者關係部分查閱。

The release is also included as an exhibit on the company's Form 10-Q and is available on its website and the Securities and Exchange Commission's website at sec.gov.

新聞稿也作為附件包含在公司的 10-Q 表中，可在公司網站和美國證券交易委員會網站 sec.gov 上查閱。

A replay of this audio only webcast will also be available on the company's website approximately two hours after the conclusion of this call.

本次電話會議結束後約兩小時，公司網站上也將提供該僅有音訊的網路廣播的重播。

Before we begin the call, please note all of the financial information presented is unaudited and various remarks made by management during this call about the company's future expectations, plans and prospects may constitute forward-looking statements for purposes of the safe harbor provisions under the Federal Securities Laws and Regulations.

在我們開始電話會議之前，請注意，所提供的所有財務資訊均未經審計，並且管理層在電話會議中就公司未來預期、計劃和前景所發表的各種言論可能構成聯邦證券法律和法規下安全港條款的前瞻性陳述。

These forward-looking statements represent the company's views as of today and should not be relied upon as representing the company's views as of any subsequent date. Results could differ materially from those forward-looking statements.

這些前瞻性陳述代表公司截至今天的觀點，不應被視為代表公司在任何後續日期的觀點。結果可能與這些前瞻性陳述有重大差異。

Additional information on factors which could cause actual results to differ materially from those forward-looking statements is available in the company's release and public filings.

有關可能導致實際結果與前瞻性陳述存在重大差異的因素的更多信息，請參閱公司新聞稿和公開文件。

On today's call, management will also reference certain non-GAAP financial measures including adjusted EBITDA and adjusted EBITDA margin assessing the company's operating performance. Reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures is also included in the company's release and SEC filings.

在今天的電話會議上，管理層還將參考某些非 GAAP 財務指標，包括調整後的 EBITDA 和調整後的 EBITDA 利潤率，以評估公司的經營業績。這些非 GAAP 財務指標與最直接可比較的 GAAP 指標的對帳也包含在公司的發布和 SEC 文件中。

I will now turn the call over to Farmer Brothers, President and Chief Executive Officer, John Moore.

現在我將電話轉給農民兄弟公司總裁兼執行長約翰·摩爾。

Mr. Moore. Please go ahead.

摩爾先生。請繼續。

Good afternoon everyone and thank you for joining us.

大家下午好，感謝大家的參與。

The second quarter was a strong one for Farmer Brothers, despite the challenging market environment. Sales were up slightly on a year-over-year basis and up 6% compared to the first quarter of this year to $90 million.

儘管市場環境充滿挑戰，農夫兄弟第二季仍取得強勁業績。銷售額較去年同期略有成長，較今年第一季成長 6%，達到 9,000 萬美元。

We maintained gross margins above 43% for the second straight quarter. Our selling and G&A expenses also continued to decline.

我們連續第二季維持毛利率在43%以上。我們的銷售費用和管理費用也持續下降。

In addition, we realized our second straight quarter of positive adjusted EBITDA performance at $5.9 million and generated positive free cash flow for the first time in many years.

此外，我們連續第二季實現調整後 EBITDA 正值，達到 590 萬美元，並且多年來首次產生正自由現金流。

We believe these results underscore the positive impact of the changes we have made to focus on DSD operations and optimize the business over the last 18 months. Overall, our cost structure is significantly improved but we remain focused on driving customer and volume growth against a tough consumer backdrop.

我們相信，這些結果凸顯了我們在過去 18 個月中專注於 DSD 營運和優化業務所做的改變所帶來的正面影響。總體而言，我們的成本結構得到了顯著改善，但在嚴峻的消費環境下，我們仍然專注於推動客戶和銷售成長。

On that front, just last week Eurest, announced a partnership with us to develop a new premium coffee program featuring ethically sourced eco-friendly blends, specifically designed for the workplace. This partnership highlights, our core value proposition with our white glove DSD service model serving as a key factor in their decision to work with us.

在這方面，就在上週，Eurest 宣布與我們合作開發一項新的優質咖啡計劃，該計劃以符合道德標準的環保混合咖啡為特色，專為工作場所設計。這次合作凸顯了我們的核心價值主張，而我們的白手套 DSD 服務模式是他們決定與我們合作的關鍵因素。

We also announced, the addition of Brian Miller to our senior leadership team in January. Brian joins the company as our Vice President of Sales. He is a results oriented leader who has a proven track record of driving business development efforts within both DSD organizations and the coffee sector.

我們也於一月份宣布 Brian Miller 加入我們的高階領導團隊。布萊恩加入本公司擔任銷售副總裁。他是一位注重結果的領導者，在推動 DSD 組織和咖啡行業的業務發展方面有著良好的記錄。

Tom Bauer, who previously led our sales organization and DSD operations has transitioned to the role of Vice President and Chief Field Operations Officer. Tom will continue to head up our DSD teams where he will be focused on leading our route and working capital optimization efforts as well as helping to further refine our operational systems and processes.

湯姆·鮑爾 (Tom Bauer) 之前曾領導我們的銷售組織和 DSD 運營，現已轉任副總裁兼首席現場營運長。湯姆將繼續領導我們的 DSD 團隊，專注於領導我們的路線和營運資金優化工作，並幫助進一步完善我們的營運系統和流程。

We believe these leadership enhancements will provide significant benefits as each of these experienced leaders will now have a singular area of focus within the business. Both of which play a vital role in driving our top line and strengthening customer growth and retention efforts.

我們相信，這些領導力的提升將帶來顯著的效益，因為這些經驗豐富的領導者現在將在業務中專注於一個獨特的領域。這兩者對於推動我們的營收成長和加強客戶成長與保留工作都發揮著至關重要的作用。

In addition, I am pleased to announce our comprehensive SKU rationalization and brand pyramid projects will both be completed by the end of the fiscal third quarter. The final phase, the addition of our new specialty tier coffee brand has already rolled out select customers and will be launching fully in a few weeks.

此外，我很高興地宣布，我們的全面 SKU 合理化和品牌金字塔專案都將在第三財季末完成。在最後階段，我們新增的特色咖啡品牌已經面向特定客戶推出，並將在幾週內全面推出。

Early feedback has been positive and with this initiative completed, we can focus on executing. These projects have created significant operational efficiencies for Farmer Brothers which we expect to continue to realize benefits from through the back half of 2025 and have helped simplify our overall go to market approach.

早期的回饋是正面的，隨著這項計劃的完成，我們可以專注於執行。這些項目為 Farmer Brothers 創造了顯著的營運效率，我們預計到 2025 年下半年這些項目將繼續帶來效益，並有助於簡化我們的整體市場進入方式。

Our updated brand pyramid also allows us to meet our customers where they are and provide them with options to engage at the levels and prices which make the most sense for them.

我們更新的品牌金字塔也使我們能夠在客戶所在地與他們會面，並為他們提供最適合他們的等級和價格的選擇。

We believe this simplified and straightforward approach will further enhance our customer growth and retention efforts.

我們相信這種簡化和直接的方法將進一步增強我們的客戶成長和保留工作。

We do however continue to experience pressure related to customer counts and overall coffee volumes. We saw some customer attrition during the second quarter and our overall coffee volumes were down 8% on a year-over-year basis. This is primarily a result of customer count degradation, lower consumer spending and decreased foot traffic across our customer base. All of these will be a key area of focus for Brian and his team for the remainder of this year and beyond.

然而，我們仍面臨與顧客數量和咖啡總量相關的壓力。我們在第二季發現一些客戶流失，我們的整體咖啡銷售量較去年同期下降了 8%。這主要是由於顧客數量減少、消費者支出減少以及客戶群客流量減少所造成的。所有這些都將是 Brian 和他的團隊今年剩餘時間及以後關注的重點領域。

With that said, our allied products which include teas, other beverages, spices, mixes, and various culinary items, make up approximately half of our total sales. These products which are a natural extension of our coffee offerings continue to help us protect our gross margins during volatile market environments by making each route and individual stock more profitable and creating additional value within our existing accounts.

話雖如此，我們的相關產品包括茶、其他飲料、香料、混合物和各種烹飪用品，約佔我們總銷售額的一半。這些產品是我們咖啡產品的自然延伸，透過使每條路線和個股更有利可圖並為我們現有客戶創造額外價值，它們繼續幫助我們在動蕩的市場環境中保護我們的毛利率。

Our coffee expertise coupled with our allied goods is a market differentiator for Farmer Brothers. Together they provide additional opportunities and benefits for our customer base. Ultimately creating greater customer loyalty and helping us sell more coffee and allied products.

我們的咖啡專業知識加上我們的相關產品是農夫兄弟的市場差異化因素。它們共同為我們的客戶群提供了額外的機會和利益。最終創造更大的客戶忠誠度並幫助我們銷售更多的咖啡和相關產品。

Looking at the macroeconomic environment, we continue to see high prices and volatility in the commodity markets. As a result, a number of our peers have taken price in the last few months or have announced plans to do so in the coming year. Farmer Brothers was proactive in doing this, making a price adjustment in early fiscal 2025 in response to what we were seeing in the marketplace.

綜觀宏觀經濟環境，大宗商品市場價格持續高漲、波動較大。因此，我們的許多同行在過去幾個月中已經採取了行動，或宣布了明年採取行動的計劃。Farmer Brothers 積極主動地採取了這一行動，並根據市場狀況在 2025 財年初期進行了價格調整。

As such, we feel we remain well positioned from an inventory and pricing perspective to continue to protect our top line and customer base. But we'll of course proactively monitor and adjust as necessary.

因此，我們認為，從庫存和定價的角度來看，我們仍然處於有利地位，可以繼續保護我們的營收和客戶群。但我們當然會主動監控並根據需要進行調整。

I'd also note we are paying close attention to the heightened risk of trade actions initiated with key export markets for coffee and some of our allied products. While this risk hasn't directly impacted us at this juncture, it does introduce another layer of volatility into the commodity markets.

我還要指出，我們正在密切關注與咖啡和一些相關產品的主要出口市場發起的貿易行動所帶來的風險加劇。雖然這種風險目前還沒有對我們造成直接影響，但它確實為商品市場帶來了另一層波動。

Wrapping up we feel good about the performance this quarter and the progress we are making. We have a lot more to do and we're doing it in a challenging market environment. We remain heads down on executing and setting up Farmer Brothers for longer term success.

總的來說，我們對本季的表現和所取得的進展感到滿意。我們還有很多事情要做，而且我們正在充滿挑戰的市場環境中做這些事情。我們將繼續全力以赴地執行和建立「農民兄弟」計劃，以取得更長遠的成功。

I'll now turn it over to Vance to discuss our Financials in more detail.

現在我將把話題交給萬斯，讓他更詳細地討論我們的財務狀況。

Thanks John, and good afternoon everyone.

謝謝約翰，大家下午好。

As John stated, Farmer Brothers had a solid second quarter despite current market challenges with continued improvements in adjusted EBITDA in operating expenses and strong gross margin performance for the second consecutive quarter. Overall, our adjusted EBITDA for the quarter was $5.9 million a year-over-year increase of $3.6 million compared to the second quarter of last year.

正如約翰所說，儘管當前面臨市場挑戰，但農民兄弟公司第二季業績表現穩健，調整後營業費用 EBITDA 持續改善，毛利率連續第二季表現強勁。總體而言，本季的調整後 EBITDA 為 590 萬美元，與去年第二季相比增加了 360 萬美元。

This was also a $4.5 million increase sequentially compared to the first quarter of F25.

與 F25 第一季相比，這也比上季增加了 450 萬美元。

Our adjusted EBITDA for the quarter was again supported by healthy gross margins. For the second quarter, our gross margin was 43.1%, a year-over-year increase of 270 basis points compared to 40.4% in the second quarter of last year.

健康的毛利率再次支撐了本季調整後的 EBITDA。第二季度，我們的毛利率為43.1%，較去年第二季的40.4%年增270個基點。

Our gross margin results primarily reflect our price optimization efforts over the past year as well as pricing actions taken early in the fiscal year to get ahead of the rising coffee markets. Sequentially, gross margins were down slightly compared to last quarter due to higher cost inventory starting to work through our cost of goods sold.

我們的毛利率結果主要反映了我們過去一年的價格優化努力以及財年初期為領先於不斷增長的咖啡市場而採取的定價行動。由於較高的庫存成本開始影響我們的銷售成本，因此毛利率與上一季相比略有下降。

This will continue over the coming quarters and put some pressure on margins as we sell through higher cost inventory due to rising coffee prices. We do however believe our proactive pricing actions and inventory management have us positioned to continue to deliver margins above our 40% target over the coming quarters, despite current market conditions.

由於咖啡價格上漲導致我們銷售成本較高的庫存，這種狀況將在未來幾季持續下去，並對利潤率造成一定壓力。然而，我們確實相信，儘管當前的市場狀況不佳，但我們積極的定價行動和庫存管理將使我們在未來幾季繼續實現超過 40% 目標的利潤率。

For the second quarter, net sales were relatively flat year-over-year at $90 million, compared to $89.5 million for the same period last year.

第二季淨銷售額與去年同期相比持平，為 9,000 萬美元，而去年同期為 8,950 萬美元。

Sequentially, net sales were up close to $5 million or 6% compared to the first quarter.

與第一季相比，淨銷售額成長了近 500 萬美元，增幅為 6%。

This sequential improvement represents normal seasonality along with further flow through of the pricing actions I previously mentioned, taken in the first quarter. Operating expenses were $37.8 million or 42% of net sales in the second quarter, compared to $31.7 million or 35.4% of net sales in the second quarter of last year.

這種連續的改善代表了正常的季節性，以及我之前提到的第一季採取的定價行動的進一步延續。第二季營業費用為 3,780 萬美元，佔淨銷售額的 42%，而去年同期為 3,170 萬美元，佔淨銷售額的 35.4%。

The year-over-year increase was driven by a $7.7 million decrease in net gains on asset sales, as there were no branch sales during the second quarter of this fiscal year. When adjusted for net asset sales, operating expenses declined by $1.5 million year-over-year or 200 basis points as a percentage of net sales reflecting our progress in rightsizing our cost structure over the past year and positioning us well, going forward.

年比成長是由於資產銷售淨收益減少 770 萬美元，因為本財年第二季沒有分公司銷售。經淨資產銷售額調整後，營業費用較上年同期下降了 150 萬美元，佔淨銷售額的百分比下降了 200 個基點，這反映了我們在過去一年中在調整成本結構方面取得的進展，以及為我們未來的發展做好了準備。

Net income for the quarter was $0.2 million compared to $2.7 million in the second quarter of F24. You should know last year included $6.1 million of net gains related to asset disposals. While this quarter included a $1.5 million net loss related to asset disposals as there were no branch sales during the quarter.

本季淨收入為 20 萬美元，而 F24 第二季為 270 萬美元。您應該知道，去年其中包括與資產處置相關的 610 萬美元的淨收益。由於本季沒有分公司銷售，因此本季出現了 150 萬美元的資產處置相關淨損失。

Looking at the balance sheet as of December 31, 2024 we had $5.5 million of unrestricted cash and cash equivalents, $0.2 million in restricted cash, and $23.3 million in outstanding borrowings under our credit facility with $23.7 million of additional borrowing capacity. Since the sale of our direct ship operations in 2023 we have been working hard to strengthen our financial position and create a stronger foundation for future growth and value creation for our shareholders.

查看截至 2024 年 12 月 31 日的資產負債表，我們擁有 550 萬美元的無限制現金和現金等價物、20 萬美元的受限現金以及 2,330 萬美元的信貸安排下的未償還借款，以及 2,370 萬美元的額外借款能力。自 2023 年出售我們的直銷船舶業務以來，我們一直在努力加強我們的財務狀況，為未來成長和為股東創造價值奠定更堅實的基礎。

Driving towards positive free cash flow has been a key element of this.

推動實現正的自由現金流一直是實現這一目標的關鍵因素。

We've been making solid progress on this front as demonstrated by our six consecutive quarters of improved cash flow from operations including two consecutive quarters of positive operating cash flow. For the second quarter, cash flow from operating activities was $2.6 million, an increase of $6.3million compared to the second quarter of last year.

我們在這方面取得了紮實的進展，這表現在我們連續六個季度的營運現金流改善，其中包括連續兩季的正經營現金流。第二季度，經營活動現金流為 260 萬美元，較去年第二季增加 630 萬美元。

We also reached an important milestone by achieving positive free cash flow for the quarter. Free cash flow was $0.5 million for the quarter. An improvement of $7.6 million compared to the prior year period.

本季，我們也實現了正自由現金流，達到了一個重要的里程碑。本季自由現金流為 50 萬美元。與去年同期相比增加了 760 萬美元。

As a reminder, Farmer Brothers defines free cash flow, as cash flow from operating activities less capital expenditures.

提醒一下，農民兄弟將自由現金流定義為經營活動產生的現金流減去資本支出。

Looking ahead, the unprecedented coffee markets will likely put pressure on our results over the coming quarters. We remain focused on execution and as our second quarter results demonstrate, we are in a much stronger position to manage these challenges. Overall, we are pleased with our recent results and believe they demonstrate the significant progress we have made and provide a glimpse of our long term potential.

展望未來，前所未有的咖啡市場可能會在未來幾季對我們的業績造成壓力。我們仍然專注於執行，正如我們的第二季業績所顯示，我們處於更有利的位置來應對這些挑戰。總體而言，我們對最近的業績感到滿意，並相信這反映了我們取得的重大進展並展現了我們的長期潛力。

With that. I'll turn it back over to John.

就這樣。我會把它交還給約翰。

Thanks Vance, our strong improvement year-to-date and in the second quarter is testament to the hard work of our team over the past year and a half. We're proud of the significant financial improvements we have seen so far in relation to gross margins, operating expenses, adjusted EBITDA and operating cash flow.

謝謝萬斯，我們今年迄今和第二季度的強勁進步證明了我們團隊在過去一年半的辛勤工作。我們對迄今為止在毛利率、營業費用、調整後 EBITDA 和營運現金流方面看到的顯著財務改善感到自豪。

These positive strides underline the success of our internal initiatives and efficiency efforts. There is still more work to be done though and we believe there is potential to realize additional incremental long term gains in terms of efficiencies.

這些積極進展凸顯了我們的內部措施和效率努力的成功。然而，還有更多工作要做，我們相信在效率方面有潛力實現額外的長期增量效益。

The core focus of the organization at this time is driving growth in top line coffee pounds and customer accounts while continuing to optimize operations. In the near term, the macroeconomic environment continues to be challenging for our industry. That said Farmer Brothers is better positioned than it has been in prior years and we will continue to proactively adjust as needed to address these headwinds as our focus remains on protecting our customer base and driving top line growth. With the addition of Brian as Head of our Sales team, we are further shoring up our business development strategy and capabilities.

該組織目前的核心重點是推動咖啡銷售和客戶帳戶的成長，同時繼續優化營運。短期內，宏觀經濟環境對我們的產業來說仍然充滿挑戰。儘管如此，農民兄弟目前的定位比前幾年要好，我們將繼續根據需要積極調整以應對這些不利因素，因為我們的重點仍然是保護我們的客戶群和推動營收成長。隨著 Brian 加入擔任我們的銷售團隊主管，我們進一步鞏固了我們的業務發展策略和能力。

This paired with the implementation of our simplified brand pyramid strategy and our focus on driving product penetration across our existing customer base should help to drive topline results as these initiatives gain traction. In his new role, Tom will now also be able to fully focus his expertise on extending and enhancing our logistics and operational capabilities as we continue to work to optimize and add density across our existing DSD routes.

隨著這些舉措獲得關注，再加上我們簡化的品牌金字塔策略的實施以及我們對推動產品在現有客戶群中的滲透的關注，這將有助於推動營收業績。在他的新的職位上，湯姆現在還可以完全集中他的專業知識來擴展和增強我們的物流和營運能力，我們將繼續致力於優化和增加現有 DSD 路線的密度。

As it is evident by our recent performance, we are continuing to make significant progress and improvements across the organization, despite current market challenges. With these improvements, we are confident when more stable market conditions return, we will be well positioned to realize significant positive gains and drive long term growth and profitability. I want to thank you all for joining us on the call today.

從我們最近的表現可以看出，儘管當前面臨市場挑戰，但我們仍在整個組織內繼續取得重大進展和改進。有了這些改進，我們相信，當市場條件更加穩定時，我們將能夠實現顯著的正收益，並推動長期成長和獲利。我要感謝大家今天參加我們的電話會議。

Operator. We will now open it up for questions.

操作員。我們現在開始回答問題。

Thank you. We will now begin the question and answer session.

謝謝。我們現在開始問答環節。

(Operator Instructions)

（操作員指令）

Gerard Sweeney, ROTH

傑拉德·斯威尼（ROTH）

Good afternoon guys. Thanks for taking my call.

大家下午好。感謝您接聽我的電話。

Hey, Gerard. Thanks for joining. Great to hear from you. .

嘿，傑拉德。感謝您的加入。很高興收到您的來信。。

Congratulations. Obviously, you're executing very well with seeing the results. I did want, and I'm going to touch on that in a second, but I did want to start on obviously the top line. As you said, I think it's a growth in the top line is one of your strategic focuses going forward. No surprise there. Bringing Brian on board looks like you're making, taking some steps to either rework, revamped or tighten up the sales process. I'm just curious if maybe you could shed a little bit of light on what your thought process is on that front. Is this a big step forward? Is there, what's the opportunity here, etc. along those fronts, if you could?

恭喜。顯然，從結果來看，你的執行效果非常好。我確實想要，而且我馬上就會談到這一點，但顯然我想從最上面那行開始。正如您所說，我認為營收成長是您未來的策略重點之一。這並不奇怪。讓布萊恩加入看起來就像您正在採取一些措施來重新制定、改進或加強銷售流程。我只是好奇，您是否可以稍微解釋一下您在這方面的想法。這是一個巨大的進步嗎？如果可以的話，這些方面有哪些機會等等？

Sure Gerard. We're extremely excited to have Brian Miller join the organization. He comes with decades plus experience both in DSD and specifically in the coffee space. He's charged with really breathing a new life and energy into our business development efforts. I think Tom Bauer has done a tremendous job restructuring the KPI sets that drive the sales efforts, building that infrastructure building that team while simultaneously working through the various operational issues that we've talked about over the last year.

當然可以，傑拉德。我們非常高興 Brian Miller 加入我們組織。他在 DSD 和咖啡領域擁有數十年的經驗。他的職責是為我們的業務發展注入新的活力和能量。我認為湯姆鮑爾在重組推動銷售工作的 KPI 集、建立基礎設施和團隊以及解決我們在過去一年中討論過的各種營運問題方面做出了巨大的貢獻。

And I think it's really about the scale and size of the both challenge and opportunity here at Farmer Brothers. Having dedicated resources to both sides of the equation the optimization of the DSD organization and the business development efforts, I think are going to yield some exciting results for us going forward.

我認為這實際上與「農民兄弟」所面臨的挑戰和機會的規模和大小有關。透過將資源投入到等式的兩邊，即 DSD 組織的最佳化和業務發展努力，我認為這將為我們未來帶來一些令人興奮的結果。

Got it. Switchgears obviously, like what I was probably alluding to and didn't articulate as well as, splitting the roles. Sales is important as this operational side and then on the operational side, maybe what inning do you think you are in terms of optimizing the platform? You've made some really good gains. We're seeing it in the numbers, but just curious as to how much more is out there and are there any chunkier items still remaining or are we going to see a little bit more blocking and tackling and some incremental gains?

知道了。顯然是開關設備，就像我可能暗示的那樣，但沒有很好地表達出來，而是劃分了角色。銷售對於營運來說很重要，那麼在營運方面，您認為在優化平台方面您處於什麼階段？你已經取得了一些非常好的進步。我們在數字中看到了這一點，但只是好奇還有多少，是否還剩下更大的項目，或者我們是否會看到更多的阻止和處理以及一些增量收益？

That's a great question, Gerard, I think I would say we're in the early to mid innings. If I were to characterize it in that way, I think we're still getting a handle on all of the street level opportunities that remain. I do see that there's tremendous potential value in our existing customer base that remains to an extent untapped.

這是一個很好的問題，傑拉德，我認為我們正處於早期到中期的階段。如果我這樣描述的話，我認為我們仍然在掌握剩下的所有街頭層面的機會。我確實看到我們現有的客戶群中存在著巨大的潛在價值，而且這一價值在某種程度上還未開發。

And one of the things we're really excited to dig into now that we have Tom focused exclusively on the existing customer base and fulfillment of that white glove service value proposition. And we have Brian focused completely on the development of new opportunities. I think we can really fulfill our promise to the customer. We've now buttoned up the brand pyramid SKU rationalization piece.

現在我們非常高興深入探討的事情之一是，湯姆專注於現有客戶群和白手套服務價值主張的實現。我們讓布萊恩全心投入新機會的開發。我想我們確實能夠兌現對客戶的承諾。現在，我們已經完成了品牌金字塔 SKU 合理化部分。

There's no question we've acknowledged and I think resolved some of the core challenges that we were facing in the past where there were the out of stock challenges or the equipment availability challenges. I think we've taken great strides in resolving some of those things and now we can really turn our lens to how do we increase that product penetration? How do we realize more value and strengthen that relationship per customer on a customer by customer basis? Because ultimately, that's going to drive that return on investment if we put equipment in and it will drive that top line contribution dollar per stop when we expand the footprint with the customer. So I think we have a lot of opportunity there yet to be realized and it's great to think that we're in a space now where we can start to turn our lens more to strategic initiatives like that going forward.

毫無疑問，我們已經承認並且我認為已經解決了我們過去面臨的一些核心挑戰，例如缺貨挑戰或設備可用性挑戰。我認為我們在解決其中一些問題上已經取得了很大進展，現在我們可以真正專注於如何提高產品滲透率了。我們如何在每個客戶的基礎上實現更多價值並加強與每個客戶的關係？因為最終，如果我們投入設備，這將推動投資回報，而當我們擴大與客戶的合作範圍時，它將推動每個站點的營收貢獻。因此，我認為我們還有很多機會尚未實現，而且我很高興地認為，我們現在可以開始將我們的目光更多地轉向未來的戰略舉措。

Got it super helpful. I'll jump back into. I appreciate it. Thanks guys and congrats on the on the next quarter.

我覺得非常有幫助。我會跳回去。我很感激。謝謝大家，並恭喜下一季的順利進行。

Thanks Gerard. Thank you.

謝謝杰拉德。謝謝。

Eric Des Lauriers, Craig-Hallum

Eric Des Lauriers、Craig-Hallum

Great. Thank you for taking my questions and congrats on strong profitability this quarter, great execution.

偉大的。感謝您回答我的問題，並祝賀本季強勁的獲利能力和出色的執行力。

My first questions are around the specialty tier brand. Just wondering if you could expand on any of the that positive early customer feedback that you touched on and then, overall, I know specialty is typically a smaller percentage of your sales. But do you see the rollout or I guess the full rollout of the specialty brand as a potential top line driver or is it more of a margin enhancer helping drive, the continued efficiency optimization that you guys have been executing on?

我的第一個問題與專業品牌有關。只是想知道您是否可以詳細說明您提到的任何積極的早期客戶回饋，然後，總的來說，我知道特色產品通常只佔您銷售額的較小比例。但是，您是否認為推出或全面推出特色品牌是潛在的營收驅動因素，或者它是否更像是一種利潤增強劑，有助於推動您們一直在執行的持續效率優化？

That's a great question. I think it would, it would begin the former and end in the latter. So if you look at the data around coffee consumption patterns and particularly when you look at generational trends of most consumers, you can really see a gravitation to more exotic and specialty style beverages and flavor profiles as you get into Gen Z, Gen Alpha and that entire group matures into a viable consumer set.

這是一個很好的問題。我認為是的，它將以前者開始並以後者結束。因此，如果你查看有關咖啡消費模式的數據，特別是當你查看大多數消費者的代際趨勢時，你會發現，隨著 Z 世代、Alpha 世代以及整個群體成長為可行的消費者群體，人們會傾向於選擇更具異國情調和特色風格的飲料和風味。

And that's one of the exciting things about the specialty opportunity, bigger picture, longer term is that it really aligns with a lot of those consumers. They're looking for the more conscientious consumer ideology around sustainability, they're looking for transparency. They're looking to have a more first person relationship with the products that they buy. And and I think our ability to do that to reverse engineer a value chain and coffee from seed to sift is something that really distinguishes Farmer Brothers and what we can do. The early results, that you spoke to have been very positive.

這是專業機會令人興奮的事情之一，從更大、更長遠的角度來看，它確實與許多消費者一致。他們正在尋求更有責任心的永續性消費者理念，他們正在尋求透明度。他們希望與所購買的產品建立更第一人稱的關係。而且我認為，我們有能力對咖啡從種子到篩選的價值鏈進行逆向工程，這是農民兄弟的真正特色，也是我們能做的事情。您談到的早期結果非常積極。

We're still in the early days there, so not putting too much color into that. But you can see some of that capability as evidenced with our relationship with your that we've discussed on the call. That's been out in the press, the ability of Farmer Brothers to do high quality production and sourcing work really differentiates us in our peer set. And I think in the initial phases, it'll be somewhat of an optimization piece.

我們仍處於早期階段，因此不會對此進行過多的闡述。但是您可以看到其中的一些能力，正如我們在通話中討論過的與您的關係所證明的那樣。這已經在媒體上公佈，農民兄弟的高品質生產和採購能力確實讓我們在同行中脫穎而出。我認為在初始階段，它將是一個最佳化部分。

You know, we are optimizing through the collapsing of those multiple brands into one. You're seeing a consolidation of SKUs that's upward of 50%. When it comes to the finished goods, the total aggregate impact of the brand pyramid strategy has been a consolidation of over 66%.

你知道，我們正在透過將多個品牌合併為一個來進行最佳化。您會看到 SKU 的整合率上升了 50%。對成品而言，品牌金字塔策略的整體影響已達到66%以上的整合度。

And when you think about the associated raw materials and SKU counts that go into producing these, it's over a 55% consolidation. So meaningful optimization on the sourcing side and on the manufacturing side that then realized through the rest of the organization. In the beginning, that'll generate value for us on the first piece optimizing our operations. But then longer term, I think we're excited to see this really a top line driver.

當您考慮生產這些產品所需的相關原料和 SKU 數量時，其整合度超過了 55%。因此，採購方面和製造方面的有意義的最佳化隨後透過組織的其他部分實現。首先，這將為我們在優化營運的第一步上創造價值。但從長遠來看，我認為我們很高興看到這真的是一個頂線驅動因素。

That's our help on great color. And you actually kind of touched on my next question. So with this us partnership I guess first question here is, are the brands with us, is that sort of specific to that partnership or is this your new specialty tier brand?

這就是我們對出色色彩的幫助。您實際上已經觸及了我的下一個問題。因此，對於與美國的合作，我想第一個問題是，這些品牌是否與我們合作，是否特定於該合作關係，還是這是您的新專業品牌？

It's a great question. Now, these are brands that are specific to that partnership. And I think as such, it really highlights one of our underappreciated perhaps core capabilities again, as a quality roasting and manufacturing sourcing operation, we do have the capability to, breathe life into the value propositions and brands of others. And I think it's one of the things that distinguishes again, Farmer Brothers from many in the peer space.

這是一個很好的問題。現在，這些都是特定於該合作關係的品牌。我認為，這再次凸顯了我們被低估的核心能力之一，作為一家優質烘焙和製造採購企業，我們確實有能力為他人價值主張和品牌注入活力。我認為這是農民兄弟與同行公司的區別之一。

And that's a great example, again, their consumers are looking for eco friendly, environmentally sound, socio-economically driven coffee types that also marry all of those sustainability and transparency efforts with very, very, very high quality. And we're able to having six curators on our team and a very accomplished coffee capability. We're able to fulfill all of their needs with that program under their flagship grant.

這是一個很好的例子，他們的消費者正在尋找生態友善、環境無害、社會經濟驅動的咖啡類型，並將所有永續性和透明度努力與非常非常高的品質結合在一起。我們團隊有六位策展人，並且擁有非常出色的咖啡能力。我們能夠利用他們的旗艦資助計劃來滿足他們的所有需求。

Yeah, that's great. How material could that us partnership be? I mean, obviously they're good sized customer. So I guess, first question, just on how material that could be and then can you kind of talk about the landscape of these similar opportunities that are out there?

是的，太棒了。我們之間的這種合作關係有多重要？我的意思是，顯然他們是大客戶。所以我想，第一個問題是，這可能有多重要，然後您能否談談目前存在的類似機會的概況？

Yeah, there are many in the space that don't necessarily [roas] for manufacture but are looking for a partner that can provide that kind of service. And there are many that are also significant scale. So I would say its a meaningful opportunity. Our core focus right now is not in that space to be fair, but it is a capability that we can bring to bear when customers and prospects come to us.

是的，這個領域有很多人不一定為製造業提供 ROAS，但正在尋找可以提供此類服務的合作夥伴。其中許多也具有相當的規模。所以我想說這是一個很有意義的機會。公平地說，我們目前的核心重點不在於那個領域，但當客戶和潛在客戶來找我們時，我們可以發揮它的能力。

Our core focus is and remains really on the core business that we do. Our DSD customers are down the street business. Our, accounts that we have today and then growing in that food and beverage space with our own brands, but this is a capability that we can offer.

我們的核心重點一直是我們所做的核心業務。我們的 DSD 客戶都是街頭生意的。我們今天擁有的帳戶，然後透過我們自己的品牌在食品和飲料領域不斷發展，但這是我們可以提供的能力。

That's helpful. And then last question for me here. So I also saw in the press, that you have a direct to consumer e-commerce platform that you've recently launched. Can you just share any plans here or how you are thinking about this direct to consumer offer?

這很有幫助。這是我的最後一個問題。所以我也從媒體上看到，您最近推出了一個直接面向消費者的電子商務平台。您能否在此分享任何計劃或您對這項直接面向消費者的服務有何看法？

Sure. In actuality, many of the brands that we've had over the years we've spoken of in the past, they've had disparate brand expressions and there was no sense of familiar affiliation between any brands. So one of the things we did and it's kind of in line with the brand pyramid strategy as well, was kind of align all of these existing sites, paired them down and make them consistent with the new corporate branding refresh, as well as the brand pyramid rollout.

當然。事實上，我們多年來談到的許多品牌，它們的品牌表達方式都大不相同，而且各個品牌之間沒有任何熟悉的關聯感。因此，我們所做的事情之一，也是符合品牌金字塔策略的，就是協調所有這些現有網站，將它們配對，使它們與新的企業品牌更新以及品牌金字塔的推出保持一致。

A critical element that was involved in that process was upgrading technology that was driving the e-commerce. And what's exciting for us really was the focus in that because as such, we enabled the B2B web based ordering platform that will go live in Q4 of this year. So although the early stages because it was a low hanging fruit, we did refresh the existing e-commerce sites and align them with the brand pyramid and with the new corporate refresh.

這個過程中的關鍵要素是升級推動電子商務的技術。對我們來說，真正令人興奮的是我們將重點放在這一點上，因為我們啟用了基於網路的 B2B 訂購平台，該平台將於今年第四季度上線。因此，儘管處於早期階段，因為這是一個容易實現的目標，但我們確實刷新了現有的電子商務網站，並使其與品牌金字塔和新的企業刷新保持一致。

Really, the exciting opportunity here, is the launch of the B2B web based ordering platform that will go live in a few months time and that will provide our customers for the first time in our history with the ability to place orders at their own convenience while still enjoying the white glove service that our DSP fulfillment provides and that I think will enable them to, really expand their line of sight into our other products that we sell.

真正令人興奮的機會是推出基於 B2B 網路的訂購平台，該平台將在幾個月內上線，這將使我們的客戶有史以來第一次能夠隨時下訂單，同時仍然享受我們的 DSP 履行提供的白手套服務，我認為這將使他們能夠真正擴展他們對我們銷售的其他產品的關注。

It will enable that product penetration that we've been talking about. And it also enables us to develop loyalty programming and promotional programming which again will drive that adoption and drive value creation through the portal. So we're really excited to see that come to light at the end of our fiscal year here in the second calendar quarter.

它將實現我們一直在談論的產品滲透。它還使我們能夠開發忠誠度計劃和促銷計劃，這將再次推動這種採用並透過入口網站推動價值創造。因此，我們非常高興看到這一點在我們財政年度第二季末顯現出來。

Great color. Thanks for taking my questions.

顏色很棒。感謝您回答我的問題。

Sure. Thank You.

當然。謝謝。

(Operator Instructions)

（操作員指令）

Aaron Grey, A.G.P

亞倫·格雷（Aaron Grey）

Hi, good evening. And thanks for the question here. You've spoken a lot about, potential for increasing, the ticket from your existing customer base and just thinking about that through the lens of your product offerings, you just alluded to, making your customer base, more aware of the offerings that you have. Do you think there's, any additional need to, increase the offerings, either, via building out yourself, the products or, or acquiring?

嗨，晚上好。感謝您提出這個問題。您已經多次談到了增加現有客戶群的票務潛力，並且只是從您剛才提到的產品供應的角度來思考這個問題，讓您的客戶群更加了解您所提供的產品。您是否認為還有額外的需求來增加供應，無論是透過拓展自身業務、產品或收購？

So, just any line of sight in terms of, how you feel about the current product offerings, you have your customer base, do you need to make some additions to that or is it just making sure they're aware of the offerings that you have? Thank you.

所以，就任何角度而言，您對當前產品的感覺如何，您有客戶群，您是否需要對此做一些補充，或者只是確保他們了解您所提供的產品？謝謝。

Thank you for joining Aaron. Great to hear from you and happy to have you on the call and it's a great question. So, I think that right now our focus is on making the customers aware of the various offerings that we have. Again, one of the elements of the brand pyramid strategy was aligning all of our products in such a way that they, for the first time in our history would be available throughout the entire country.

感謝 Aaron 的加入。很高興收到您的來信，很高興您來接聽電話，這是一個很好的問題。因此，我認為現在我們的重點是讓客戶了解我們提供的各種產品。再次強調，品牌金字塔策略的要素之一是將我們的所有產品以這樣的方式進行排列，使得它們在我們的歷史上首次能夠在全國範圍內銷售。

Keep in mind we grew through acquisition. It used to be that our products were very fractured and how we offered them where we offered them. So again, for the first time in our history as of this next quarter, all three tiers on the coffee space will be offered throughout the nation and a unified methodology.

請記住，我們是透過收購而實現發展的。過去，我們的產品非常分散，我們如何提供這些產品取決於我們在何處提供它們。因此，從下個季度開始，我們將首次在全國範圍內提供咖啡領域的所有三個層級並採用統一的方法。

When it comes to the allied portfolio, we've said alluded to over the last year that we're always looking for innovative products and that was, the Shot Syrup Line that we've been launching and that we've been working with over the last year, that's been the Boyd's Liquid Ambient Product that we've been talking about.

談到聯合產品組合，我們在過去一年中曾提到，我們一直在尋找創新產品，這就是我們一直在推出的 Shot Syrup Line，也是我們過去一年中一直在合作的，這就是我們一直在談論的 Boyd's Liquid Ambient Product。

We're expanding on that capability. We're excited about where that's going. And you know, we're looking for new products, but our core focus is really on what we have and exposing our existing customer base arguably for the first time to that portfolio throughout the country in a consistent way.

我們正在擴展這項能力。我們對未來的發展感到非常興奮。你知道，我們正在尋找新產品，但我們的核心重點實際上是我們已有的產品，並以一致的方式首次向全國現有客戶群展示該產品組合。

Okay, great. Appreciate that color there. And then just secondly, you brought up price increases, not just for you guys, but in terms of the broader macro environment. So it sounds like more of those are coming for the year for the category. So do you feel like there, is any potential limitation, are you looking to, hedge the risk you have in terms of the commodity markets involved until you're sitting there? Just want to get a better line of sight in terms of any potential risk you might see in terms of, reaching some level of bottleneck for the price increases you have available. Thank you.

好的，太好了。欣賞那裡的色彩。其次，您提到了價格上漲，這不只是針對你們，而是針對更廣泛的宏觀環境。因此聽起來今年該類別還會有更多這類產品出現。那麼，您是否覺得，在您坐到那裡之前，是否存在任何潛在的限制，您是否希望對沖所涉及的商品市場的風險？只是想對您可能看到的任何潛在風險有更好的了解，以達到可用的價格上漲的某種瓶頸水平。謝謝。

Sure. I can speak to some of the market dynamics and, bands can speak to our, thoughts on price and where we stand today. I mean, there's no question. Robusta Coffee, hit an all time high just this past week, Arabica Coffee hit an all time record high yesterday before then shattering its all time high record today.

當然。我可以談論一些市場動態，樂團可以談談我們對價格的看法以及我們目前的立場。我的意思是，毫無疑問。羅布斯塔咖啡的價格在上週創下了歷史新高，阿拉比卡咖啡的價格昨日也創下了歷史新高，今天又打破了其歷史最高紀錄。

So getting all the way up to about 411 before closing at 403.95. So, but volatility in these markets is nothing new, it's what we do. We manage this on a daily basis and we always have and I would argue Matt Swenson and his Green Coffee team have implemented changes over the last year in our sourcing protocols that if anything make us more nimble than we've ever been in managing our supply chains, managing our cost structure. That coupled with brand pyramid rollout and the associated SKU rationalization both the green side and the finished good side that we did discuss.

因此一路上漲至 411 左右，最後收在 403.95。所以，這些市場的波動並不是什麼新鮮事，這就是我們所做的事情。我們每天都在管理這個問題，而且我們一直都在這樣做。再加上品牌金字塔的推出和相關的 SKU 合理化，包括我們討論過的綠色方面和成品方面。

That's really set us up pretty well to navigate these choppy waters. And I think our proactive approach to the pricing that we put in place at the beginning of the last fiscal year, this fiscal year rather. And the our capability to source forward plus all of these operational measures. It's really put us in a good spot, but I'll let that speak to the pricing side.

這確實為我們在波濤洶湧的水域中航行提供了很好的幫助。我認為我們在上個財年，或者說這個財年開始時就採取了主動的定價方法。以及我們向前尋找資源的能力以及所有這些營運措施。這確實為我們帶來了好處，但我將就定價方面來談談這一點。

Yeah. Aaron, I would say, John covered obviously the pricing aspect of what we've already done. And as we stated in our, comments, we felt like, we've been working on pricing and margins, for the past year to kind of get back to that 40 plus target that we're trying to achieve. And we're pleased with the progress that we've made over the past couple of quarters. I think we're positioned well or better than we have in quite some time, to weather the current market conditions.

是的。亞倫，我想說，約翰顯然已經涵蓋了我們已經完成的定價方面的問題。正如我們在評論中所說，我們覺得，過去一年來，我們一直在努力提高定價和利潤率，以回到我們試圖實現的 40 多個目標。我們對過去幾季取得的進展感到非常滿意。我認為，我們目前所處的位置比過去相當長一段時間內更好，可以應對當前的市場狀況。

So being proactive earlier in the year, knowing the market was going to be rising, I think it's put us in a good position, as I think John mentioned earlier, we reserve the right to certainly take additional price if we need to. We're going to try and hold off on that as much as possible. It's a very volatile market conditions right now. But as we get further along in this fiscal year, we'll certainly be looking at that more closely and do what we need to do in order to, make sure that we can continue to deliver, you know the margins that we need.

因此，我們在今年稍早採取了積極主動的態度，知道市場將會上漲，我認為這讓我們處於有利地位，正如約翰之前提到的，如果需要，我們保留收取額外價格的權利。我們將盡可能地嘗試並推遲此事。目前的市場狀況非常不穩定。但隨著本財年進一步推進，我們肯定會更加密切地關注這一點，並採取必要措施，確保我們能夠繼續實現我們所需的利潤。

Okay, great. Thanks very much for the color. I'll go ahead and jump back into the queue.

好的，太好了。非常感謝這個顏色。我將繼續並重新回到隊列中。

Hey, thank you. At this time, there are no more lines in the queue.

嘿，謝謝你。此時，隊列中已沒有其他隊列。

This concludes the question and answer session as well as the conference. Thank you for attending today's presentation.

問答環節和會議到此結束。感謝您參加今天的演講。

You may now disconnect your lines.

現在您可以斷開線路了。