Westrock Coffee Q4 Sales Up, But Net Loss Grows

Fourth quarter net sales at Westrock Coffee grew more than 6% but the Little Rock, Ark.-based company reported a larger net loss than the comparable quarter the previous year.

For the quarter ended December 31, net sales were $229 million, up 6.5% from the fourth quarter of the previous year. Net loss was $24.6 million, compared to a net loss of $20.1 million in the same quarter the prior year. Consolidated Adjusted EBITDA was $13.3 million and included $7.6 million of scale-up costs associated with its Conway facility.

Fourth quarter sales in the company’s Beverage Solutions division were $174.1 million, flat year over year. Sales in its Sustainable Sourcing & Traceability (SS&T) division were $54.9 million, an increase of 37.8% over the comparable quarter the previous year.

For the full year, net sales were down 1.6% to $850.7 million. Net loss was $80.3 million compared to a net loss of $34.6 million in fiscal year 2023. Consolidated Adjusted EBITDA was $47.2 million and included $12.8 million of scale-up costs associated with the Conway facility.

Full-year sales in Westrock’s Beverage Solutions division were down 8.8% to $659.4 million. Its full-year SS&T net sales were up 34.9% to $191.3 million. 

“Westrock Coffee’s value proposition in the market is to be the premiere integrated strategic supplier to the pre-eminent coffee, tea, and energy beverage brands globally,” said Scott T. Ford, CEO and co-founder of Westrock Coffee. “And, in 2024 we made considerable progress executing against this strategy as evidenced by the dozen new major brands that we began to provide product development and manufacturing services to.  These relationships helped us exit 2024 with 4Q Segment Adjusted EBITDA growth in both our reportable segments of over 50% and leaves us poised for more of the same over the next couple of years as the major new contracts we have recently won begin to flow through the new $400 million manufacturing complex in Conway, Ark., that comes online at scaled production levels this month.”