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Mar 31, 2024
Westrock Coffee Q1 2024 Earnings Report
Westrock Coffee reported a decrease in net sales but an increase in gross profit and Adjusted EBITDA for Q1 2024.
Key Takeaways
Westrock Coffee Company reported a decrease in consolidated net sales by 6.3% to $192.5 million, but an increase in consolidated gross profit to $37.3 million. The company's Adjusted EBITDA increased by 31.8% to $11.1 million. The company reaffirmed its 2024 Adjusted EBITDA guidance of $60-$80 million and issued preliminary 2025 Adjusted EBITDA guidance of over $115 million.
Consolidated net sales decreased by 6.3% to $192.5 million.
Consolidated gross profit increased to $37.3 million, including $1.6 million of non-cash mark-to-market gains.
Net loss was $23.7 million, including $3.0 million of transaction, restructuring and integration expense, and $9.8 million of start-up costs.
Adjusted EBITDA increased by 31.8% to $11.1 million.
Revenue by Segment
Forward Guidance
The Company is reiterating its guidance for consolidated Adjusted EBITDA to be between $60 million and $80 million in fiscal year 2024 and introducing preliminary guidance for consolidated Adjusted EBITDA of $115 million in fiscal year 2025.
Positive Outlook
- Reaffirming Adjusted EBITDA of $60-$80 million for 2024.
- Introducing preliminary guidance for Adjusted EBITDA in 2025 of over $115 million.
- Customer onboarding process is scheduled to continue on pace through the rest of this year.
- New Conway, Arkansas extract and ready-to-drink plant began producing commercial product exactly on schedule on April 16th.
- Sales pipeline development efforts were rewarded with several new contract wins in the quarter.
Challenges Ahead
- Guidance range is necessarily broad to account for the range of results the Company may experience as it commences operations at its extract and ready-to-drink facility in Conway, AR.
- The commercialization of customers at that facility may impact results.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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