Westrock Coffee Q1 Sales Down, Net Loss Shrinks
Second quarter net sales at Westrock Coffee were down year-over-year with the company reporting a lower net loss than the comparable quarter the previous year.
For the quarter ended June 30, net sales were $208.4 million, a decrease of 7.3% from the second quarter of the previous fiscal year. Net loss for the period was $17.8 million, compared to a net loss of $26.8 million for the second quarter of 2023.
The $17.8 million net loss for the second quarter of 2024 included $4.4 million of transaction, restructuring, and integration expenses, $13.6 million of start-up costs related to the company’s Conway, Ark., extract and ready-to-drink facility, and $1.6 million of non-cash gains from the change in fair value of warrant liabilities.
The $26.8 million net loss for the second quarter of 2023 included $2.9 million of transaction, restructuring, and integration expenses, $1.7 million of start-up costs related to the Conway extract and ready-to-drink facility, and $11.8 million of non-cash charges from the change in fair value of warrant liabilities.
In June, Westrock Coffee opened what it said is North America's largest roast-to-ready-to-drink manufacturing facility. The 570,000-square-foot plant represents a $315 million investment in manufacturing capability and includes a comprehensive beverage development laboratory.
The company’s Beverage Solutions segment contributed $163.3 million of net sales in the quarter, compared to $189.7 million for the second quarter of 2023. The SS&T segment contributed $45.1 million in net sales, compared to $35 million in the second quarter of 2023.
The company also forecasts adjusted EBITDA for fiscal year 2024 to be between $60 million and $65 million in fiscal year 2024. Westrock Coffee is lowering the top end of its range to account for the company’s current expectations regarding the timing of the commercialization of customers at its Conway facility. The company affirms its guidance for adjusted EBITDA of $115 million in fiscal year 2025.
