Farmer Bros, a California-based manufacturer, wholesaler and distributor of coffee, tea and culinary products, has reported net sales of $510m in the financial 2013, up 2.9% or $14.6m, compared to net sales of $495.4m during the same period in 2012.

Net sales increased $7.9m or 6.5%, to $128.8m in the fourth quarter (Q4) ended 30 June 2013, compared to $120.9m in the fourth quarter of 2012.

The increase in net sales is primarily due to increase in sales of coffee and tea products.

Gross profit increased from $172.9m in full year 2012 to $191.1m in 2013, up by $18.2m or 10.5%.

Gross profit increased $2m or 4.3%, to $47.5m in Q4 2013, as against gross profit of $45.5m in the fourth quarter of the prior fiscal year.

The increase in gross profit during the full year and fourth quarter was mainly due to 31% and 27% decrease in the average cost of green coffee purchased in financial 2013, respectively.

Farmer Bros CEO and president Mike Keown said their product innovation efforts, combined with their increased emphasis on sales and marketing, enabled them to realise growth in their national account business and report improved fourth quarter and fiscal year financial results.

"In addition, our team worked to maintain price across our DSD customer base which has contributed to our improved margins. Going forward, I believe we have made considerable progress in the year and I am confident that we have the right strategies and organization to continue," Keown added.