Specialty coffee roaster, retailer and wholesaler Tully’s Coffee Corp has posted net sales up 22% to US$51.5m for the FY ended 30 March 2002.
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The Seattle-based firm also reported a net loss of US$11.1m during the period, a decrease of 55% compared to the prior year, ended 1 April 2001.
Divisional results
The retail division, which currently operates 103 stores in Washington, Oregon, California, and Idaho, had an increase in net sales of 16% for FY 2002. Same-store sales fell by 6%, reflecting the weak economy, competition and cannibalisation by new Tully’s stores and by supermarkets selling Tully’s whole bean coffees. Net sales from the retail division of around US$41.5m accounted for approximately 81% of Tully’s total net sales.
The wholesale division, which sells Tully’s branded products to over 690 supermarkets, increased net sales by 7% for FY 2002.
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By GlobalDataThe international division increased net sales by 211% for FY 2002 to US$4.86m, reflecting licensing revenue under the agreements negotiated in FY 2002.
“This is a good story, but the start of an even better story,” said Tony Gioia, who was appointed president and CEO in May: “The past year Tully’s has shown increased revenue in all segments of our business including retail, wholesale and international. It is a very exciting time to be a part of Tully’s. With new leadership and our dedicated employees, coupled with the introduction of our Tully’s gourmet ice cream in the Seattle market, we anticipate further improvements to the health of our business.”
Kris Galvin, VP and CFO since February 2002, added: “The enhancements in our operations and the proceeds from our international licensing relationships improved our cash flow by US$13.6m and the company fully repaid its bank debt, while reducing its liabilities for accrued expenses and accounts payable by US$5m.”
Tom O’Keefe, founder and chairman, said: “I am very encouraged by the progress the company made last year and continue to be very excited about our future.”
Tully’s new executive team also includes Peter Hoedemaker, VP, retail operations; Siobhan Foody, VP, wholesale; and George Andrews, director of supply chain.
