Sep 30, 2023

Westrock Coffee Q3 2023 Earnings Report

Reported a mix of positives and negatives, with a decline in volume demand for traditional roast and ground coffee impacting Adjusted EBITDA.

Key Takeaways

Westrock Coffee reported a net sales decrease of 4.6% to $219.6 million, with a net income of $16.6 million compared to a net loss in the previous year. The company's Adjusted EBITDA decreased by $6.3 million to $11.6 million. The company expects its 2023 outlook for Adjusted EBITDA to fall below its previously issued guidance range of flat to 10% over 2022.

Consolidated net sales decreased by 4.6% to $219.6 million.

Consolidated gross profit was $35.1 million, including out-of-period charges and non-cash mark-to-market losses.

Net income was $16.6 million, which included acquisition, restructuring and integration expenses, start-up costs, and non-cash gains from the change in fair value of warrant liabilities.

Adjusted EBITDA decreased to $11.6 million.

Total Revenue
$220M
Previous year: $230M
-4.6%
EPS
$0.15
Previous year: -$0.41
-136.6%
Adjusted EBITDA
$11.6M
Previous year: $17.9M
-35.2%
Gross Profit
$35.1M
Previous year: $41.1M
-14.6%
Cash and Equivalents
$48.8M
Previous year: $91M
-46.3%
Free Cash Flow
-$105M
Previous year: -$20.4M
+416.9%
Total Assets
$891M
Previous year: $750M
+18.8%

Westrock Coffee

Westrock Coffee

Westrock Coffee Revenue by Segment

Forward Guidance

The Company expects its 2023 outlook for Adjusted EBITDA to fall below its previously issued guidance range of flat to 10% over 2022.