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STATEN ISLAND, N.Y. (AP) — Coffee Holding Co.'s shares jumped Wednesday after the coffee roaster reported that its profit grew more than sixfold for its most recent quarter.
THE SPARK: The company reported that it earned $1.2 million, or 19 cents per share, for the period that ended July 31. That's compared with $168,236 million, or 3 cents per share, in the same quarter last year.
Its revenue increased 24 percent to $44.5 million from $35.8 million on improved sales across a number of its product lines.
THE BIG PICTURE: Coffee Holding Co., based in Staten Island, N.Y., is a wholesale coffee roaster and dealer. Its private-label and branded coffee products are sold to supermarkets, wholesalers and retail customers across North America and abroad.
The company said stronger sales and improved margins helped drive its performance for the period. The company also said that lower inventory costs led to lower costs for sales as a percentage of its total sales. That, in turn, helped improve its profitability.
SHARE ACTION: Shares soared $1.39, or nearly 19 percent, to $8.73 in afternoon trading. Despite the gain, its shares still remain at the lower end of its 52-week trading range of $4.88 and $19.24.