Coffee Holding Co., Inc. (NASDAQ:JVA) recently reported a profitable F2Q2016 that continued profitability in the company to four quarters in a row. Does that signal better things ahead for the coffee dealer? The management believes that is the case. According to CEO, Andrew Gordon, the latest quarter is exciting because the company managed to post a profit despite the lower coffee prices and heightened competition in the company market.

The CEO Gordon suggested that Coffee Holding Co., Inc. (NASDAQ:JVA) had not run out of ideas to continue posting positive results in the coming quarters. Concerning the latest quarter, the CEO said that profitability improved in Coffee Holding’s three major business areas.

What transpired on the topline side?

According to Coffee Holding, net sales pulled back 29.3% to just over $21.4 million in F2Q2016. The decrease was not strange as it reflected the general picture of the coffee market were prices have stayed low for some time. A reduction in Coffee Holding’s wholesale coffee transaction was another reason for the drop in revenue in the latest quarter.

Despite the decline in revenue, Coffee Holding Co., Inc. (NASDAQ:JVA) registered an impressive drop in cost of revenue, which came in at 84.5% as a percentage of net sales. That compared with 103.6% as a percentage of sales in the year ago quarter. According Coffee Holding, lower wholesale transactions contributed to the decrease in the cost of sales.

As a result of the improvement in cost of sales, Coffee Holding Co., Inc. (NASDAQ:JVA) posted gross profit margin of 15.5% compared to -3.6% in the year ago quarter. In absolute dollar terms, gross profit was $3.31 million, sharp increase from gross loss of $1.1 million in the comparable quarter a year ago.

The bottom-line

Coffee Holding Co., Inc. (NASDAQ:JVA) posted EPS profit of $0.14 in F2Q2016 compared to EPS loss of $0.33. The increase in EPS was attributed to the decrease in total expenses in the latest quarter. Coffee said its total expenses in F2Q2016 were $1.95 million compared to $2.1 million in the year ago quarter.