Though it may never be as important a revenue-generator as its sister company Matson Navigation Company, Kauai Coffee Company did contribute positively to the bottom line of parent company Alexander & Baldwin, Inc. last year.
Kauai Coffee falls under A&B’s food-products group, which for the full year 2003 saw revenue virtually unchanged.
Last year, A&B officials reported yearly revenues of $112.9 million, up from $112.7 million in 2002.
In the fourth quarter of 2003, the company’s food-products revenue was $29.3 million, down 13 percent from $33.5 in 2002.
“Overall, we did well,” said Kauai Coffee President Frank Kiger.
“The areas that we shined in were on the e-commerce side (which includes mail order and the coffee club).”
According to Kiger, the company showed a 25- and 50-percent increase in sales in mail order and coffee club, respectively.
In addition, the company showed a 24-percent increase in sales at its visitor center between Kalaheo and ‘Ele’ele, and a 27-percent growth in roasted-coffee sales.
“We need to continue to focus in all of those areas this year,” said Kiger. “On the cost side of the ledger, we are doing a great job of keeping costs down.”
In terms of production, Kauai Coffee finished with 3.3 million pounds harvested in 2003. Kiger said the goal is to reach 3.5 million pounds.
“A big reason for the 2003 number is manpower,” he said. “Our harvest runs from eight to 10 weeks, and the number of workers on the harvest staff increases from 56 to about 120. It sometimes is difficult to find temporary people to fill those seasonal jobs.”
A&B subsidiaries with operations on Kaua’i include A&B Properties, Inc., whose leaders are in the process of gaining regulatory approvals necessary to construct the 1,000-acre resort community of Kukui’Ula on the South Shore; Kauai Coffee Company, Inc., the state’s largest coffee plantation and the world’s largest drip-irrigation coffee plantation; Kauai Commercial Company, a trucking, moving and storage company; and Matson Navigation, an ocean-transportation company with operations at Nawiliwili Harbor.
Last week leaders of all of A&B reported 2003 net income of $81,300,000, or $1.95 per share, a 39.7 percent increase over 2002 totals.
In 2002, company officials reported net income of $58,200,000, or $1.42 per share. Total revenues for the company in 2003 topped $1,232,500,000, compared to $1,087,700,000 in 2002.
The fourth quarter of 2003 was especially strong for the company, which had a net income of $18,800,000, up from $17,400,000 in 2002. Revenue in the fourth quarter of 2003 was $327,700,000, compared with revenue of $281,600,000 in the fourth quarter of 2002.
“The 2003 fourth-quarter rounded out a good year for A&B, with especially strong performance at both Matson and A&B Properties, the two largest components of the company,” said Allen Doane, A&B president and chief executive officer.
Doane was optimistic about his company’s 2004 prospects.
“As we look toward to the company’s performance (this year), improved service levels at Matson, benefits from the new real estate investments, and the improving economic outlook for Hawai’i have the prospect, in combination, to result in continuing the growth of our earnings, although not at the pace achieved in 2003.”
For the first time ever, Matson exceeded $1 billion in sales. Matson shipped 145,200 automobiles in 2003, up from 120,500 in 2002. In the fourth quarter of last year, 36,200 vehicles were shipped, up 29 percent from 2002.
“In addition to its positive financial results, Matson successfully began a new roll-on/roll-off auto service in the fourth quarter,” said Doane.
“Smooth operations also continue for Matson’s new containership, M.V. Manukai, which made its inaugural voyage in the third quarter. Lastly, late in the year, Matson Integrated Logistics acquired a truck brokerage firm, which is an attractive segment of the intermodal business,” Doane added.
A&B Properties reported a 31 percent loss in sales in 2003, as the total revenue was $63.8 million, down from $93 million in 2002. Doane said that 31-percent loss could be attributed to subdivision and joint-venture sales activities, and less from sales of larger properties.
“A&B Properties’ continued good financial performance in 2003 was complemented by its highly successful real estate investments,” said Doane.
Business Editor Barry Graham may be reached at 245-3681 (ext. 251) or mailto:bgraham@pulitzer.net.
