Farmer Bros Co (FARM) 2025 Q4 法說會逐字稿

Good afternoon. Welcome to the Farmer Brothers' fiscal fourth-quarter and year-end 2025 earnings conference call.

午安.歡迎參加 Farmer Brothers 2025 財年第四季和年終收益電話會議。

(Operator Instructions) As a reminder, this call is being recorded.

（操作員指示）提醒一下，此通話正在被錄音。

Today, the company filed its Form 10-K and issued its fourth-quarter and year-end results press release, which are available in the Investor Relations section of the Farmer Brothers' website at farmerbros.com. The release is also included as an exhibit on the company's Form 10-K and is available on its website and the Securities and Exchange Commission's website at sec.gov.

今天，該公司提交了10-K表格，並發布了第四季度和年終業績新聞稿。新聞稿可在Farmer Brothers網站farmerbros.com的「投資者關係」欄位查閱。新聞稿亦包含在本公司10-K表格的附件中，可在本公司網站和美國證券交易委員會網站sec.gov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此純音訊網路廣播的重播。

Before we begin the call, please note that all 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 the purposes of 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，管理層在電話會議期間就公司未來預期、計劃和前景所作的各種評論可能構成聯邦證券法律法規下安全港條款所指的前瞻性陳述。

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

這些前瞻性陳述代表了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。有關可能導致實際結果和其他事件與前瞻性陳述存在重大差異的因素的更多信息，請參閱本公司的新聞稿和公開文件。

On today's call, management will also reference certain non-GAAP financial measures, including adjusted EBITDA and adjusted EBITDA margin, in 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，來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. Mr. Moore, please go ahead.

現在我將把電話轉給 Farmer Brothers 總裁兼執行長約翰·摩爾。摩爾先生，請繼續。

Good afternoon, everyone. Thank you for joining us.

大家下午好。感謝您加入我們。

Fiscal 2025 was a strong year for Farmer Brothers. We realized significant operational and financial improvements despite market headwinds. We ended the year with gross margins above 43%, a more-than-$14 million-year-over-year improvement in adjusted EBITDA, continued decreases in SG&A expenses, and significantly paid down debt.

2025 財年對 Farmer Brothers 來說是強勁的一年。儘管面臨市場阻力，我們仍實現了顯著的營運和財務改善。我們今年的毛利率超過了 43%，調整後的 EBITDA 同比增長了 1400 多萬美元，銷售、一般及行政費用持續下降，並且大幅償還了債務。

We also captured a number of internal efficiency gains from both an organizational and cost structure perspective, as a result of our manufacturing-, sales-, and network-optimization initiatives.

透過實施製造、銷售和網路優化舉措，我們也從組織和成本結構的角度獲得了許多內部效率的提升。

With the successful launch of our Sum>One specialty brand this past March, we fully realized the completion of our SKU rationalization and brand-pyramid -- Good, Better, Best positioning -- initiatives. Early response to Sum>One has been encouraging, with several promising opportunities in the pipeline. In fact, we are currently working with a few of our larger customers to launch Sum>One-branded cafe experiences across their locations and look forward to sharing more with you in the coming months.

隨著今年 3 月 Sum>One 專業品牌的成功推出，我們全面實現了 SKU 合理化和品牌金字塔（好、更好、最佳定位）計劃。Sum>One 的早期反應令人鼓舞，目前已有幾個有希望的機會。事實上，我們目前正在與一些較大的客戶合作，在他們的商店推出 Sum>One 品牌的咖啡館體驗，並期待在未來幾個月與您分享更多。

In distilling a multitude of brands and coffee types into our core Farmer Brothers' Boyd's and Sum>One brands, we leveraged a significant and differentiating capability in Farmer Brothers: our coffee sourcing, quality control, roasting, and manufacturing teams.

在將眾多品牌和咖啡類型提煉為我們的核心 Farmer Brothers 的 Boyd's 和 Sum>One 品牌時，我們利用了 Farmer Brothers 的重要差異化能力：我們的咖啡採購、品質控制、烘焙和製造團隊。

In addition to flexing this core competence for SKU rationalization, the team was also able to reconstitute our sourcing methodologies to enhance elasticity and provide more resilience. This is of particular importance, given the current state of the green coffee markets.

除了發揮這項核心競爭力實現 SKU 合理化之外，團隊還能夠重建我們的採購方法，以增強彈性並提供更強的韌性。鑑於當前的綠色咖啡市場狀況，這一點尤其重要。

We've also continued to differentiate ourselves from competitors with our ability to provide a fully comprehensive set of coffee solutions. Our sourcing and product development teams enable Farmer Brothers to engineer solutions from soil to sip. Our small batch and nimble manufacturing capability allows us to provide coffee-finished goods, ranging from more value-engineered commercial applications to the highest of quality specialty coffee types.

我們也憑藉提供全套咖啡解決方案的能力繼續在競爭中脫穎而出。我們的採購和產品開發團隊使 Farmer Brothers 能夠設計從土壤到飲料的解決方案。我們的小批量和靈活的製造能力使我們能夠提供咖啡成品，從更有價值工程的商業應用到最高品質的特色咖啡類型。

These services can be provided in both LTO and large-scale volumes in our SQF and LEED Silver-certified Portland, Oregon roasting and manufacturing facility.

我們位於俄勒岡州波特蘭的 SQF 和 LEED 銀級認證焙燒和製造工廠可以以 LTO 和大規模形式提供這些服務。

With the appointments of Brian Miller in sales and Travis Young in field operations to our leadership team, we formally separated those responsibilities. This heightened focus in each respective area is allowing leadership to better align team KPIs and incentive structures with customer and team member needs. In each area, we are seeing heightened focus, attention to detail, and improved execution.

隨著銷售部門的 Brian Miller 和現場營運部門的 Travis Young 被任命進入我們的領導團隊，我們正式將這些職責分開。對各個領域的高度關注使得領導層能夠更好地將團隊 KPI 和激勵結構與客戶和團隊成員的需求結合起來。在每個領域，我們都看到了高度的關注、對細節的關注以及執行力的提升。

We also further strengthened our customer service efforts with the full reintegration of our Revive Services team back into our field operations organization. Revive is home to one of the largest coffee service networks in the country and provides installation, maintenance, repair, and restoration services for coffee, tea, and our beverage equipment.

我們也透過將 Revive Services 團隊完全重新整合到我們的現場營運組織中，進一步加強了我們的客戶服務力度。Revive 是全國最大的咖啡服務網路之一，提供咖啡、茶和飲料設備的安裝、維護、維修和修復服務。

Emphasizing and investing in our refurbishment capability while improving controls and ROI expectations allowed us to make significant reductions in CapEx related to brewing equipment expenditures. Thanks to our partnerships with leading equipment manufacturers, Revive continues to be a true market differentiator for Farmer Brothers and a key component in our customer retention efforts.

強調和投資我們的翻新能力，同時改善控制和投資回報率預期，使我們能夠大幅減少與釀造設備支出相關的資本支出。由於我們與領先設備製造商的合作，Revive 繼續成為 Farmer Brothers 真正的市場差異化因素，也是我們客戶保留工作的關鍵組成部分。

Across the board, we spent much of 2025 focused on improving our technology platforms and systems. We completed an upgrade of all our hardware for route sales representatives and Revive team members, as well as several improvements designed to enhance our supply chain optimization and flexibility efforts.

總體而言，我們將在 2025 年的大部分時間裡致力於改進我們的技術平台和系統。我們完成了路線銷售代表和 Revive 團隊成員的所有硬體的升級，以及旨在增強我們的供應鏈優化和靈活性的多項改進。

We also launched a new CRM tool in early fiscal 2025, which is providing the organization with better customer analytics. This data will allow us to better target products and pricing and provide further insight into supply and demand forecasting, going forward.

我們也在 2025 財年初推出了一款新的 CRM 工具，為組織提供更好的客戶分析。這些數據將使我們能夠更好地定位產品和定價，並為未來的供需預測提供進一步的見解。

The macro and microeconomic environments, however, continue to present significant challenges for the coffee industry as a whole. As such, we saw total coffee volumes decreased by 10% on a year-over-year basis to just shy of 20 million pounds in 2025.

然而，宏觀和微觀經濟環境繼續為整個咖啡產業帶來重大挑戰。因此，我們看到咖啡總量年減 10%，到 2025 年將略低於 2,000 萬磅。

According to recent commerce department data, US restaurants and bars saw one of the weakest six-month periods of sales growth in the past decade during the first half of 2025. Leaders in the QSR restaurant and C-store channels have all reported further evidence of softness in consumer purchasing patterns, particularly in the breakfast daypart.

根據美國商務部最近的數據，2025 年上半年，美國餐廳和酒吧的銷售額成長是過去十年中最疲軟的六個月之一。QSR 餐廳和 C-store 管道的領導者都報告了消費者購買模式疲軟的進一步證據，尤其是在早餐時段。

Overall, this year has shown weaker growth in the food services sector than that during the COVID-19 pandemic, when restaurants and bars were closed due to lockdown orders. This downturn in overall foot traffic across our customer base, coupled with a 65%-plus rise in green coffee prices over the past year, makes for a particularly challenging market environment.

總體而言，今年食品服務業的成長速度比新冠疫情期間弱，當時餐廳和酒吧因封鎖令而關閉。我們客戶群整體客流量的下降，加上過去一年咖啡生咖啡價格上漲了 65% 以上，使得市場環境變得特別嚴峻。

The impact of potential tariffs, especially the 50% tariff on goods imported from Brazil which went into effect in early August, has also yet to be fully realized. While Farmer Brothers' exceptional access to global coffee markets creates flexibility for our planning and procurement teams, we do anticipate we will see a significant increase in our overall cost of goods in fiscal 2026.

潛在關稅的影響，尤其是8月初生效的對巴西進口商品徵收50%的關稅，尚未完全顯現。雖然 Farmer Brothers 在全球咖啡市場的特殊管道為我們的規劃和採購團隊創造了靈活性，但我們預計 2026 財年我們的整體商品成本將大幅增加。

Our proactive pricing strategy helped us stay ahead of these challenges in fiscal 2025. We believe we have maximized this strategy and do not plan to make additional price adjustments at this time. As such, we expect pressure on our top line and gross margin in fiscal 2026.

我們的積極定價策略幫助我們在 2025 財年保持領先地位，以應對這些挑戰。我們相信我們已經最大限度地發揮了這一策略，目前不打算進行額外的價格調整。因此，我們預計 2026 財年的營業收入和毛利率將面臨壓力。

Despite these challenges, we remain committed to driving company growth and creating value for our shareholders, as highlighted in our July announcement of the formation of our Strategy Committee. The committee is continuing to explore opportunities. We will provide more information, if and when it is appropriate.

儘管面臨這些挑戰，我們仍然致力於推動公司發展並為股東創造價值，正如我們 7 月宣布成立策略委員會時所強調的那樣。該委員會正在繼續探索機會。如果合適，我們將提供更多資訊。

Looking to fiscal 2026, we are committed to addressing customer and coffee pound degradation and driving top-line revenue. We are focused on unlocking the full power and potential of our DSD network. With Travis Young driving DSD Field Operations, we are creating a culture of accountability that is focused on driving product penetration within existing accounts, while also adding new ones.

展望 2026 財年，我們致力於解決客戶和咖啡重量下降問題並推動營業收入成長。我們致力於釋放 DSD 網路的全部功能和潛力。在 Travis Young 領導 DSD 現場營運的帶領下，我們正在創造一種責任文化，專注於推動產品在現有帳戶中的滲透，同時也增加新帳戶。

Farmer Brothers (inaudible) service value proposition will continue to be a key driver in customer retention and loyalty, focused on growth across our restaurants, coffee shop, cafe, bagel and doughnut shop channels, as well as continuing to expand our GPOs nationally. We believe we can meet the needs of our customers regardless of their size with our Good, Better, Best brand-pyramid value proposition. With Brian Miller at the helm, we are cultivating a unified sales team through a comprehensive organization-wide training and KPIs.

Farmer Brothers（聽不清楚）的服務價值主張將繼續成為客戶保留和忠誠度的關鍵驅動力，專注於我們的餐廳、咖啡店、咖啡館、百吉餅和甜甜圈店渠道的增長，以及繼續在全國範圍內擴大我們的 GPO。我們相信，憑藉著「好、更好、最好」的品牌金字塔價值主張，我們可以滿足客戶的需求，無論規模大小。在 Brian Miller 的領導下，我們正在透過全面的組織範圍培訓和 KPI 培養統一的銷售團隊。

We will also look to leverage our core coffee capability as we grow our white-label customer portfolio and better utilize our Portland, Oregon roasting and manufacturing facility. Our unique seed-to-sip value chain engineering capabilities allow us to offer diverse quality and packaging possibilities, making us particularly attractive to potential white-label customers.

隨著我們白標客戶組合的擴大以及更好地利用我們位於俄勒岡州波特蘭的烘焙和製造工廠，我們還將尋求利用我們的核心咖啡能力。我們獨特的從種子到飲料的價值鏈工程能力使我們能夠提供多樣化的品質和包裝可能性，使我們對潛在的白標客戶特別有吸引力。

While we do expect market challenges to continue throughout fiscal 2026, we believe the changes we have made over the recent years have created a strong foundation from which we can grow.

雖然我們確實預期市場挑戰將持續到 2026 財年，但我們相信，近年來我們所做的改變為我們的發展奠定了堅實的基礎。

With that, I'll turn it over to Vance to discuss our financial results in more detail. Vance?

接下來，我將把話題交給萬斯，讓他更詳細地討論我們的財務表現。萬斯？

Thanks, John. Good afternoon, everyone.

謝謝，約翰。大家下午好。

As John mentioned, Farmer Brothers delivered very strong results in fiscal '25 despite a challenging market environment. We achieved significant year-over-year improvements in adjusted EBITDA, gross margins, and SG&A; and significantly improved our cash flow generation, which allowed us to strengthen our balance sheet.

正如約翰所提到的，儘管市場環境充滿挑戰，但 Farmer Brothers 在 25 財年仍然取得了非常強勁的業績。我們的調整後 EBITDA、毛利率和銷售、一般及行政費用年比均有顯著改善；且我們的現金流量產生能力也顯著提高，這讓我們的資產負債表得到加強。

Overall, our adjusted EBITDA for the fourth quarter was $5.8 million and $14.8 million for the full fiscal year, a year-over-year improvement of more than $7 million for the quarter and more than $14 million for the full fiscal year. Our adjusted EBITDA results were supported by healthy gross margins.

整體而言，我們第四季的調整後 EBITDA 為 580 萬美元，全年調整後 EBITDA 為 1,480 萬美元，年比分別成長 700 多萬美元和 1,400 多萬美元。我們的調整後 EBITDA 結果受到健康的毛利率的支持。

Gross margin in the fourth quarter was 44.9%, a year-over-year increase of 610 basis points. For the full fiscal year, gross margins were 43.5%, a 420 basis points increase compared to the prior year. Our proactive approach to pricing continued to positively impact gross margins throughout the year, as we strategically stayed ahead of the rising green coffee market.

第四季毛利率為44.9%，較去年同期成長610個基點。整個財年的毛利率為43.5%，比前一年增加了420個基點。我們積極主動的定價方法繼續對全年的毛利率產生積極影響，因為我們在策略上保持了在不斷增長的綠色咖啡市場的領先地位。

However, as John mentioned earlier, we believe we have maximized the benefits of this strategy. At this time, we do not have plans to take additional price in the near term. As a result, we expect pressure on gross margins throughout fiscal '26, as we realize the impact of the rising green coffee COGS in our results and expect gross margins to drop into the high-30%s range over the coming quarters.

然而，正如約翰之前提到的，我們相信我們已經最大限度地發揮了這一策略的優勢。目前，我們近期沒有收取額外費用的計劃。因此，我們預計整個 26 財年的毛利率將面臨壓力，因為我們意識到綠咖啡 COGS 上升對我們業績的影響，並預計未來幾季毛利率將降至 30% 的高點。

From a top-line perspective, net sales during the fourth quarter were $85.1 million compared to $84.4 million during the prior year period. For the full fiscal year, net sales were up slightly to $342.3 million compared to $341.1 million in the prior year.

從營收角度來看，第四季淨銷售額為 8,510 萬美元，而去年同期為 8,440 萬美元。整個財年，淨銷售額略有上升，達到 3.423 億美元，而上一年為 3.411 億美元。

Operating expenses increased $14.3 million to $150.4 million for the year. This increase was almost exclusively a result of a $20.2 million year-over-year decrease in net gains related to the sale of branch properties and other assets, as we have far fewer branch sales in fiscal '25 compared to fiscal '24.

全年營運費用增加 1,430 萬美元，達到 1.504 億美元。這一增長幾乎完全是由於與分支機構物業和其他資產出售相關的淨收益同比減少 2020 萬美元，因為與 24 財年相比，25 財年的分支機構銷售額要少得多。

Excluding asset sales, operating expenses decreased by $6 million or 190 basis points as a percentage of net sales. This reflects the progress we've made in driving efficiencies in our SG&A cost structure and better positions us to manage a challenging operating environment.

不包括資產銷售，營運費用減少了 600 萬美元，佔淨銷售額的百分比減少了 190 個基點。這反映了我們在提高銷售、一般和行政費用結構效率方面取得的進展，並使我們能夠更好地應對充滿挑戰的營運環境。

For the fourth quarter, Farmer Brothers recorded a net loss of $4.7 million compared to a $4.6 million net loss in the fourth quarter of fiscal '24. For the full fiscal year, we recorded a net loss of $14.5 million compared to a loss of $3.9 million in the prior year. The current fiscal year included non-cash losses of $7.7 million related to pension settlements and a $20.2 million decrease in net gains on asset sales, due primarily to fewer branch sales in the current year compared to the prior year, as I mentioned earlier.

第四季度，Farmer Brothers 淨虧損 470 萬美元，而 24 財年第四季淨虧損 460 萬美元。在整個財政年度，我們的淨虧損為 1,450 萬美元，而上一年的虧損為 390 萬美元。本財政年度包括與退休金結算相關的 770 萬美元非現金損失和 2,020 萬美元資產出售淨收益減少，主要原因是本年度分行銷售額與前一年相比有所減少，正如我之前提到的。

We made meaningful progress strengthening the balance sheet during the year. As of June 30, 2025, we had $6.8 million of unrestricted cash and cash equivalents and $14.3 million in outstanding borrowings under our credit facility. This represents a roughly $10 million decrease in our net debt position over the course of the year. We ended the year with $32.6 million of additional borrowing capacity under our credit facility.

我們在年內加強資產負債表方面取得了重大進展。截至 2025 年 6 月 30 日，我們擁有 680 萬美元的無限制現金和現金等價物以及 1,430 萬美元的信貸額度下的未償還借款。這意味著我們全年淨債務減少了約 1000 萬美元。截至年底，我們的信貸額度下還擁有 3,260 萬美元的額外借貸能力。

Free cash flow generation was much improved in fiscal '25. For the fourth quarter, free cash flow was $7.5 million and $6.5 million for the full fiscal year, representing a year-over-year increase of $12.1 million for the quarter and $34.5 million for the full fiscal year. This significant improvement in free cash flow is a testament to our progress in driving better operating performance, improved working capital management, and CapEx efficiency; and puts us in a much stronger overall financial position.

25 財年的自由現金流產生了很大改善。第四季自由現金流為 750 萬美元，全年自由現金流為 650 萬美元，年增 1,210 萬美元（本季），年增 3,450 萬美元（全年）。自由現金流的顯著改善證明了我們在推動更好的營運績效、改善營運資本管理和資本支出效率方面取得了進展；並使我們的整體財務狀況更加強勁。

Looking ahead, we expect market conditions to continue to be challenging throughout fiscal '26, as the green coffee market has continued to stay elevated and uncertainty remains regarding tariff impacts. These elements will put pressure on our gross margins and overall financial results throughout fiscal '26.

展望未來，我們預計整個 26 財年的市場狀況將繼續充滿挑戰，因為生咖啡市場繼續保持高位，關稅影響仍然存在不確定性。這些因素將對我們整個 26 財年的毛利率和整體財務表現造成壓力。

With that said, we are pleased with our fiscal '25 performance, as it reflects the significant progress Farmer Brothers has made to improve our operating results and financial position; and believe it demonstrates our potential to generate significant long-term value for our shareholders under more favorable market conditions.

話雖如此，我們對 25 財年的業績感到滿意，因為它反映了 Farmer Brothers 在改善經營業績和財務狀況方面取得的重大進展；並相信它證明了我們在更有利的市場條件下為股東創造重大長期價值的潛力。

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

說完這些，我就把麥克風交還給約翰。約翰？

Thanks, Vance.

謝謝，萬斯。

Farmer Brothers has come a long way in a fairly short amount of time. Fiscal 2025 was a year of tremendous improvement, both financially and operationally, despite significant market headwinds. While we take great pride in that, as you've heard me say time and again, there is still much work to be done. As such, we remain committed to driving top-line revenue growth, increasing overall coffee volumes, strengthening our customer retention and expansion efforts, and delivering an exceptional customer experience in fiscal 2026.

農夫兄弟在相當短的時間內取得了長足的進步。儘管面臨巨大的市場阻力，2025 財年在財務和營運方面都取得了巨大進展。儘管我們對此感到非常自豪，但正如你們一次又一次聽到我所說的那樣，仍有許多工作要做。因此，我們將繼續致力於推動營業收入成長、增加整體咖啡銷售、加強客戶保留和擴展力度，並在 2026 財年提供卓越的客戶體驗。

Before we open it up for questions, I want to take a quick moment to thank our team. Their leadership, perseverance, and determination continue to be what drives our successes, both big and small, in how we continue to build connections over coffee. They are what makes Farmer Brothers great.

在我們開始提問之前，我想花一點時間感謝我們的團隊。他們的領導、毅力和決心繼續推動我們取得大大小小的成功，讓我們能夠繼續透過喝咖啡來建立聯繫。他們讓 Farmer Brothers 變得偉大。

Thank you, all, again for joining us on the call today. Operator, we will now open it up for questions.

再次感謝大家今天參加我們的電話會議。接線員，我們現在開始提問。

(Operator Instructions)

（操作員指示）

Eric Des Lauriers, Craig-Hallum Capital Group.

艾瑞克‧德斯‧勞裡爾斯 (Eric Des Lauriers)，克雷格-哈勒姆資本集團。

Sincere congratulations on the execution that you guys have done over the past year. Certainly, a tough macro backdrop but really impressive results. So hats off to you guys.

真誠祝賀你們在過去一年中取得的成績。當然，宏觀背景嚴峻，但結果確實令人印象深刻。我向你們致敬。

John, you cited a couple of areas where you're continuing to focus on operational efficiency and margin improvements. Obviously, you guys have done a lot of execution on the operational efficiency front already. Brand pyramid is now complete.

約翰，您提到了幾個您將繼續關注的領域，即營運效率和利潤率的提高。顯然，你們已經在營運效率方面做了很多工作。品牌金字塔現已完成。

Could you maybe rank order those areas where you're focusing now? Or maybe help us understand where that remains the biggest opportunity to further improve efficiency? I'm just wondering how much is left, considering all that you guys have done.

您能否對現在關注的領域進行排序？或者也許可以幫助我們了解哪裡仍然是進一步提高效率的最大機會？我只是想知道，考慮到你們所做的一切，還剩下多少。

No. Thanks for the question, Eric.

不。謝謝你的提問，艾瑞克。

I would categorize it as somewhat of a pivot at this moment. A pivot from pricing action and optimization to performance and execution. I think that we did a great deal of work over the last year or two years of refining many of our systems, many of our processes.

我現在將其歸類為轉折點。從定價行動和優化轉向性能和執行。我認為，在過去的一兩年裡，我們做了大量工作來完善我們的許多系統和流程。

We've talked in the past about route optimization efforts, et cetera. I think at this point now, we put new leadership in place: Travis Young on the Field Operations side, Brian Miller on the Business Development side. Both gentlemen are adding tremendous value and really getting their feet under them.

我們過去曾討論過路線優化工作等等。我認為現在我們已經任命了新的領導：特拉維斯楊 (Travis Young) 負責現場運營方面，布萊恩米勒 (Brian Miller) 負責業務開發方面。兩位先生都為公司帶來了巨大的價值，並真正站穩了腳步。

At this time, we're able to pivot more again into addressing that degradation in pounds, addressing that degradation in customer counts, and trying to focus much more on our customer-focused white-glove service and fulfillment.

目前，我們可以再次將更多的精力放在解決重量下降的問題、解決客戶數量下降的問題，並嘗試更加專注於以客戶為中心的白手套服務和履行。

I think we've got a 100-year history of industry leadership in that space. We've got one of the largest coffee-centric DSD networks, if not the largest in the country. We've got one of the largest, if not the largest, equipment-servicing, coffee-specific networks in the country. We've got arguably one of the most talented and accomplished green coffee sourcing, roasting, manufacturing, and fulfillment coffee operations in the country.

我認為我們在該領域擁有 100 年的行業領導歷史。我們擁有全國最大的以咖啡為中心的 DSD 網路之一，甚至是最大的。我們擁有全國最大的設備服務、咖啡專用網路之一，甚至可以說是最大的。我們擁有全國最有才華和最成功的綠色咖啡採購、烘焙、製造和履行咖啡業務之一。

I think what we're really looking to do is lean on all of those core competency areas to drive value both for our customers and our shareholders. That's what you're going to hear us focusing on over the next fiscal year.

我認為我們真正想要做的是依靠所有這些核心競爭力領域為我們的客戶和股東創造價值。這就是我們在下一財年關注的重點。

Great. That's helpful. I suppose it's a bit of a related question here. It sounds like this is where the focus is now. But as we think about customer churn levels -- I know, about a year ago or so at this point, order fulfillment was one of the biggest- or maybe, the lowest-hanging fruit there. It sounds like you guys have improved that significantly over the past year. But maybe comment on any order fulfillment progress that remains, if any?

偉大的。這很有幫助。我想這是一個有點相關的問題。聽起來這就是現在的焦點。但當我們考慮客戶流失率時——我知道，大約一年前左右，訂單履行是其中最大的——或者可能是最容易實現的——成果之一。聽起來你們在過去的一年裡已經有了顯著的進步。但也許可以評論任何剩餘的訂單履行進度（如果有的話）？

And then, just at this point, to the extent that you've had this visibility, I'm wondering if you're seeing more of the churn now coming from simple macro headwinds. You commented on how food service industry is basically as pressured as it's been over the past decade. So to the extent that you're still seeing some churn, could you just comment on the levels of churn, overall; how your order fulfillment rates have been progressing here; and just what you're seeing from a, like, forced error on your guys' part from causing customer churn versus just the whole bit of macro headwinds at this point?

然後，就在這一點上，就您已經擁有的這種可見性而言，我想知道您是否看到更多的客戶流失來自簡單的宏觀逆風。您評論說食品服務業面臨的壓力基本上與過去十年一樣大。那麼，鑑於您仍然看到一些客戶流失，您能否評論一下整體的客戶流失水平；您的訂單履行率在這裡進展如何；以及您認為是您員工的強制性錯誤導致了客戶流失，還是目前所有的宏觀不利因素？

A bit of a wordy question there but, just, if you can just expand on the dynamics there, it would be helpful.

這是一個有點冗長的問題，但是，如果你能擴展那裡的動態，那將會很有幫助。

Sure. I appreciate the question. I think it gives me an opportunity to highlight some great work done by Greg Newham and his team in Coffee; and in general, the Planning & Procurement functions in the company.

當然。我很感謝你提出這個問題。我認為這讓我有機會強調 Greg Newham 和他的團隊在咖啡方面以及公司總體規劃和採購職能方面所做的出色工作。

There was definitely a challenge to that team to address what had been a really difficult out-of-stock situation. I think that also speaks to the final execution with the brand-pyramid strategy. As we've said in the past, it impacts a number of different facets of what we do.

對於該團隊來說，解決真正困難的缺貨情況確實是一個挑戰。我認為這也說明了品牌金字塔策略的最終執行。正如我們過去所說的那樣，它影響著我們工作的許多不同方面。

It makes everything more efficient, from sourcing to manufacturing line time to roasting to distribution throughout the network. There's a fair amount of complexity there that we removed from the system (inaudible) in finally executing that initiative.

它使一切都變得更加高效，從採購到生產線時間到烘焙到整個網路的分銷。在最終執行該計劃時，我們從系統中刪除了相當多的複雜性（聽不清楚）。

But I have to again tip my cap to the Planning & Procurement team. I think they did a tremendous job. They recognize the challenge for what it was.

但我必須再次向規劃和採購團隊致敬。我認為他們做得非常出色。他們認識到了這項挑戰的嚴重性。

And then, it was really a complete team effort -- so the Field Operations team, the communication between those groups, it deserves extra attention because at this point in time, I would say, knock on wood, we've actually solved that almost completely.

然後，這真的是一個完整的團隊的努力——所以現場運營團隊，這些團隊之間的溝通，值得額外的關注，因為在這個時候，我想說，敲木頭，我們實際上已經幾乎完全解決了這個問題。

So I'm very happy to report -- as we often said, when we show up on time with the products that we should have for the customer, we think we win. Given our white -glove service commitment; the fact that our DSD network is so strong; and those route sales representatives provide such a comprehensive service -- when they go into a four-walls environment, they rotate stock, they calibrate equipment, they wipe down a coffee servicing area, they really do take care of all of the customers' coffee, beverage fulfillment needs so that the customer can focus on their core business, servicing their customers for their downstream.

因此我很高興地報告——正如我們經常說的那樣，當我們準時向客戶提供我們應該提供的產品時，我們認為我們贏了。鑑於我們的白手套服務承諾；我們的 DSD 網路非常強大；並且那些路線銷售代表提供如此全面的服務 - 當他們進入四面牆的環境時，他們會輪換庫存，校準設備，擦拭咖啡服務區，他們確實會照顧到所有客戶的咖啡、飲料履行需求，以便客戶可以專注於他們的核心業務，為下游客戶提供服務。

So I'm very happy to report we've done a pretty good job on that side.

因此我很高興地報告我們在這方面做得相當不錯。

That's great to hear. Congrats, again, on all the execution over the past year-plus.

聽到這個消息真是太好了。再次恭喜過去一年多來取得的所有成就。

Gerard Sweeney, ROTH Capital.

羅仕資本的傑拉德·斯威尼 (Gerard Sweeney)。

On the growth side -- I know headwinds, you gave a little bit of macro backdrop of the industry. But at some point, you can't cut yourself to profitability. You had to start growing. This is a tough environment for that.

在成長方面—我知道有逆風，您給了一些行業宏觀背景。但到了一定時候，你就無法再靠削減成本來獲得獲利了。你必須開始成長。這是一個艱難的環境。

But what's the opportunity to drive better penetration, reduce churn, and stabilize volumes -- things like that? Can we do that in this environment, where we're going to be just have to grind through this?

但是，有什麼機會可以提高滲透率、減少顧客流失、穩定銷售量之類的呢？在這種環境下，我們能做到這一點嗎？我們只能努力克服這一切。

Thanks, Gerry. I think it's definitely a difficult macro environment to operate in, in the moment. There are a number of headwinds that are truly macro. And then, there are headwinds that are macro specific to coffee. We've discussed those at length.

謝謝，格里。我認為，目前的宏觀環境確實很難運作。確實存在一些宏觀的不利因素。此外，也存在一些特定於咖啡的宏觀不利因素。我們已經詳細討論過這些問題。

I think over the last couple of years, as we've discussed, we were able to maintain some integrity in top line and really drive the gross margin improvements through a great deal of pricing action.

我認為，正如我們所討論的，在過去幾年中，我們能夠保持一定的營收完整性，並透過大量的定價行動真正推動毛利率的提高。

One challenge with pricing action, of course, is it does put pressure, particularly on the customer retention piece. As we've discussed, we're looking to pivot a little bit away from leveraging that lever, so to speak. Now, we're really emphasizing the execution at Street level. And so I think that that should have some positive impact when it comes to the customer retention piece.

當然，定價行動的一個挑戰是它確實會帶來壓力，特別是在客戶保留方面。正如我們所討論的，我們正在尋求稍微擺脫對這一槓桿的利用，可以這麼說。現在，我們真正強調的是街道層面的執行。因此，我認為這對客戶保留方面應該會產生一些正面的影響。

I think when it comes to the pounds and the pounds' degradation, we've spoken in the past about, in some cases, you can maintain an apples-to-apples customer comparison; but in some cases, customers seem to be potentially ordering a little bit less than they used to for a number of macro reasons.

我認為，當談到英鎊和英鎊貶值時，我們過去曾談到，在某些情況下，你可以保持同類的客戶比較；但在某些情況下，由於一些宏觀原因，客戶的訂購量似乎可能比以前少一些。

We are really looking to aggressively engage and activate our DSD network, not just in terms of product penetration but also in terms of acquisition. We think we have a very talented group. It's our largest Street-facing representative group, well over 200 or so routes running every single day.

我們確實希望積極參與和激活我們的 DSD 網絡，不僅在產品滲透方面，而且在收購方面。我們認為我們擁有一支非常有才華的團隊。這是我們最大的面向街道的代表團體，每天運行超過 200 條路線。

We think, given the tools, the training, and the incentives, we can activate that group to do more business-acquisition effort. So really looking forward to seeing what Travis Young can do with his team on that side.

我們認為，有了工具、培訓和激勵措施，我們可以激勵團隊做出更多的業務收購努力。所以真的很期待看到特拉維斯楊能帶領他的團隊做些什麼。

And then, of course, again, Brian Miller and his team are more focused than ever, particularly in a differentiated group of target account types. I think really looking to grow with some of the larger enterprise-value groups in the country.

當然，布萊恩米勒和他的團隊比以往任何時候都更加專注，特別是在差異化的目標帳戶類型群體中。我認為我們確實希望與國內一些較大的企業價值集團一起成長。

You and I have talked about this in the past and we've discussed it in previous calls but I do think Farmer Brothers is somewhat unique in the scale that we bring to the equation. When there are restaurant groups of hundreds of locations that have a diverse geography around the nation, there's really no other coffee company in the country that can service as comprehensively as Farmer Brothers can.

您和我過去曾談論過這個問題，我們在之前的電話會議中也討論過這個問題，但我確實認為 Farmer Brothers 在我們帶來的規模方面有些獨特。當餐飲集團在全國各地擁有數百家門市且分佈廣泛時，實際上沒有其他咖啡公司能夠像農夫兄弟一樣提供如此全面的服務。

I think looking to engage with organizations like that, while maintaining our service levels with mom-and-pop operations in every channel, will be the winning equation for us.

我認為尋求與這樣的組織合作，同時在每個管道上保持與夫妻店運營相同的服務水平，將是我們的製勝法寶。

How much traction have you gotten with the larger restaurant groups? Are we still early in that process?

您與大型餐飲集團的合作有多大？我們還處於這個過程的早期階段嗎？

No. Gerry, I'd say we do a fair amount of work in that space already. So it's not as though this is unknown territory for us. Again, it goes back to having a pretty diverse set of client types and multiple channel types.

不。格里，我想說我們已經在該領域做了相當多的工作。所以這對我們來說並不是一個未知領域。再次，它又回到了擁有一組相當多樣化的客戶類型和多種管道類型。

We work with customers large and small across the various parts of the food and beverage industry, whether that's the restaurant side, coffee shops, stable shops, doughnut shops. But also in healthcare, gaming, institutional catering, Farmer Brothers has a strong presence. It's a national presence that can be sorted in all contiguous states.

我們與食品和飲料行業各個領域的大小客戶合作，無論是餐廳、咖啡店、馬厩店或甜甜圈店。但在醫療保健、遊戲、機構餐飲等領域，農夫兄弟也佔有重要地位。這是一種全國性的存在，可以在所有相鄰的州進行分類。

So we are in these spaces. But we have opportunity to grow.

所以我們處於這些空間。但我們有成長的機會。

Is this a function of -- you split the operations there between Brian and -- sorry, I forget his same. But just give -- Travis. Travis, if you're listening, I apologize.

這是一項功能嗎？ ——您將那裡的操作分配給 Brian 和——抱歉，我忘記了他的操作。但只是給予——特拉維斯。崔維斯，如果你在聽的話，我向你道歉。

But for Brian, does this give him the ability to focus more on these restaurant groups? Obviously, you've had a lot on your plate and you're pushing more and more behind you but does this give the opportunity to focus a little bit more on these larger restaurant groups, from a sales perspective?

但對布萊恩來說，這是否讓他更專注於這些餐飲集團？顯然，您有很多事情要做，而且您還在不斷努力，但從銷售的角度來看，這是否讓您有機會更多地關注這些較大的餐飲集團？

It does, I think. There are two sides to that, right?

我認為確實如此。這有兩面性，對嗎？

Brian has done a tremendous job of realigning and prioritizing our Business Development efforts throughout the organization. I think we have a tremendous opportunity to grow through referrals because we are present with many of the top food and beverage organizations in the country. When we do an outstanding job, they tend to refer us to their peer sets. That's how we can get a fair amount of business.

Brian 在重新調整和優先安排整個組織的業務發展工作方面做了大量工作。我認為我們有巨大的機會透過推薦來成長，因為我們與國內許多頂級食品和飲料組織都有合作。當我們出色地完成工作時，他們往往會向他們的同行推薦我們。這就是我們能夠獲得大量業務的方法。

But we also are providing new KPIs and new incentive structures for pure business development activity for people that are really just hunting, not doing any gathering. I think that we'll start seeing the results of that over the next fiscal year.

但我們也為那些只是打獵而不是進行任何採集的人們提供純粹的商業發展活動的新的關鍵績效指標和新的激勵結構。我認為我們將在下一個財政年度開始看到其結果。

Got it. One more question. I know I've asked a couple.

知道了。還有一個問題。我知道我問過幾個人。

You talked about actively engaging, activating -- and you said business acquisition. I'm assuming that's acquisition of new customers? Or meaning --

您談到了積極參與、激活——並且還提到了業務收購。我猜這是在獲取新客戶？或者意義--

Correct.

正確的。

-- yeah, not necessarily acquisitions? Okay.

——是的，不一定是收購？好的。

Which leads me to the next question: Is coffee enough? You have a lot of allied products. I don't think the queue is out. I didn't see what's going on there.

這讓我想到下一個問題：喝咖啡就夠了嗎？你們有很多相關產品。我認為隊列還沒結束。我沒看到那裡發生了什麼事。

But with such a broad distribution channel -- or yeah, channel -- can you add anything on to that or other opportunities to leverage that white-glove service and footprint?

但是，有瞭如此廣泛的分銷管道（或者說管道），您能否在其中添加任何東西或其他機會來利用白手套服務和足跡？

Yeah. There are, without question. Keep in mind, we do quite a bit of what we had referred to as allied goods. It's a significant part of our book of business.

是的。毫無疑問，有。請記住，我們生產了相當多我們稱之為盟軍商品的產品。這是我們業務的重要組成部分。

There's no question when we stop a truck, we want to sell as many products off of that truck into a four-walls environment as possible. We are always running various initiatives to drive interest in specific segments, different product types. We will continue to do that to try to really get aggressive and meet our customers where they are.

毫無疑問，當我們停下一輛卡車時，我們希望在四面牆的環境中盡可能多地銷售卡車上的產品。我們一直在進行各種措施來激發人們對特定領域、不同產品類型的興趣。我們將繼續這樣做，並努力真正積極主動地滿足客戶的需求。

Again, we have an opportunity with the Good, Better, Best portfolio now really cleanly and clearly defined. I think our inventory levels are in an appropriate place. Our working capital is being as efficient as it's been.

再次，我們有機會對「好」、「更好」、「最佳」投資組合進行真正清晰明確的定義。我認為我們的庫存水準處於適當水準。我們的營運資金一如既往地有效率。

But at the same time, we're able to get the products and the appropriate mix to the customers in a way that's arguably better than it's been in years.

但同時，我們能夠以比過去幾年更好的方式向客戶提供產品和適當的組合。

So excited to see what work can be done there with the activation of the DSD network.

我很高興看到 DSD 網路啟動後可以在那裡進行哪些工作。

Got it. I appreciate it. I'll jump back in line. Congrats on a [nice] quarter.

知道了。我很感激。我會重新排隊。恭喜本季取得[良好]業績。

Thank you.

謝謝。

This will conclude our question-and-answer session, as well as conference call.

我們的問答環節和電話會議將結束。

Thank you, all, for attending today's conference presentation. You may now disconnect.

感謝大家參加今天的會議演講。您現在可以斷開連線。