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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.
Westrock Coffee
Westrock Coffee
Westrock Coffee Revenue by Segment
Revenue by Segment
Beverage Solutions Revenue
CapyFin.comSustainable Sourcing & Traceability Revenue
CapyFin.com 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.
- Actual results may vary from this guidance and the variations may be material.
- The Company is not readily able to provide a reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net income without unreasonable effort because certain items that impact such figure are uncertain or outside the Company’s control and cannot be reasonably predicted.
- Such items include the impacts of non-cash gains or losses resulting from mark-to-market adjustments of derivatives and the change in fair value of warrant liabilities, among others.
Revenue & Expenses
Visualization of income flow from segment revenue to net income