NEW YORK (AP) — Coffee Holding's second-quarter loss widened, stung by lower coffee prices.
President and CEO Andrew Gordon said in a statement that Coffee Holding was more promotional in the period in order to stay competitive at supermarkets. He added that coffee prices may rise during the year's second half, with the company well-positioned to take advantage of the potential opportunity.
But its shares dropped more than 6 percent in morning trading on Thursday.
Coffee Holding Co. is a wholesale coffee roaster and dealer that sells private label and branded coffee products throughout the U.S., Canada and abroad to wholesalers, supermarkets and other retailers.
The Staten Island, N.Y.-based company is not the only one being pressured by lower coffee prices. Last month Mondelez International Inc. said that its first-quarter results were hurt by them.
For the three months ended April 30, Coffee Holding lost $395.5 million, or 6 cents per share. That compares with a loss of $370.2 million, or 6 cents per share, a year earlier.
Revenue dipped 1 percent to $36.7 million from $37.1 million.
Coffee Holding's stock declined 57 cents, or 8.1 percent, to $6.49 in morning trading. The shares have traded in a 52-week range of $4.88 to $9.07.