SAN DIEGO, August 12, 2005 - Javo Beverage Company, Inc. reported on Monday that second quarter improvements in revenues and operating gross margins reflect growing customer orders for its fresh brewed coffee and tea concentrates. Sales growth was strong in all business segments, including: on-demand coffee, specialty beverage mixes and bulk flavor systems. The Company reported sales in the 2nd quarter of $1,059,241, 133% higher than the same quarter in 2004. Gross profit in the second quarter was 235% higher than the same quarter last year. "The gross profit improvement was the result of production efficiencies gained through increased sales", commented Rich Gartrell, CFO of Javo Beverage Company.
Cody C. Ashwell, CEO and Chairman of Javo Beverage Company, said the financial results reflect "investments we have been making in infrastructure, people and systems to build a substantial beverage enterprise with its base in coffee and tea." Additionally, Ashwell commented that he was "pleased with the growing diversity and quality of our customer base and optimistic about prospects for continued growth in all segments of the business."
Sales of $2.1 million for the first half of 2005 exceeded the Company's sales for all of fiscal year 2004 and were 206% higher than the first of half of 2004.
Gross profit for the first half of 2005 was $ 701,000 or 221% higher than the first six months of 2004.
About Javo Beverage Company
Javo Beverage Company (OTC Bulletin Board: JAVO), based in Vista, Calif., is a manufacturer of coffee concentrates, extracts and beverages for the foodservice and food ingredient industries. For foodservice operators, Javo offers great tasting coffee concentrates and coffee-flavored beverages that conveniently dispense like juice or soft drinks. Javo Beverage Company also supplies customized coffee extracts that, when used as a food ingredient, give packaged foods and ready-to-drink beverages authentic and robust coffee flavor. Javo's coffees, extracts and beverages are served at restaurants and foodservice establishments nationwide. More information about Javo Beverage Company is available at www.javobeverage.com
