InvestorsHub Logo
Followers 0
Posts 56
Boards Moderated 0
Alias Born 08/14/2007

Re: frankie_fillet post# 947

Thursday, 08/07/2008 12:08:06 AM

Thursday, August 07, 2008 12:08:06 AM

Post# of 1334
I may be completely wrong in all these calculations, as I'm WAGuessing on some of it. Other information I'm pulling from company reports and other internet sites. But here goes:

In a company report Coffee Pacifica (at the time) indicated that a container contains 300 60KG bags or roughly 40,000 pounds.
http://sec.edgar-online.com/2004/03/12/0001056520-04-000011/Section2.asp

I can buy ethiopian green beans from a wholesaler at around $4/pound. But let's inflate that a little to be $6/pound as I've seen them as high as $7/pound and GWDC only goes for premium right?
http://ourcoffeebarn.com/wholesale/product_info.php?products_id=68

This is the wholesaler who has margin on top of the importer. But let's assume weak margins of 5% just for the sake of calculation. At $7 with 5% margin, the price paid to the importer is about $6.50.

From the 3/31/08 10Q (where is the July 10Q by the way, anyone notice?) GWDC is generating revenue at 25% margins over COGS (closer to 33% in previous Q, what happened?). So given $6.50 as a sale price, the COGS price $5.20/lb

So, taking these really WAG numbers:
$5.20*40,000lbs=$208,000 which produces a gross margin of $52,000.

So to answer my own question, I guess it's closer to $200k but generates $52k-$68k per container. So, real, you are right that coffee is not cheap.
Join InvestorsHub

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.