Westrock Coffee posts $55 million annual loss as it positions for growth
Westrock Coffee Co. reported a growth in sales but a larger annual net loss as it positions itself for future growth in the domestic and international coffee and ready-to-drink market.
On Tuesday (March 14), Westrock posted full year sales of $867.9 million, an increase from $698.1 million a year ago. The company’s full year net loss was $55.4 million compared to a $21.3 million loss in the previous year.
For the fourth quarter, Westrock reported a $31.9 million compared to a net loss of $5.2 million for the same period in 2021. The $31.9 million net loss for the fourth quarter of 2022 included $4.4 million of acquisition, restructuring and integration expense and $24.5 million of non-cash expense from the change in fair value of warrant liabilities.
Company officials expressed confidence that it is executing its business plan, although inflation was noted as a complicating factor in financial results.
“We are pleased to announce strong growth in net sales, gross profit and Adjusted EBITDA for full year 2022,” said Scott T. Ford, Westrock CEO and co-founder. “I am very grateful to the team for their near heroic efforts that delivered record annual results, even as they dealt with the damaging macroeconomic challenges of an inflation surge and record gasoline prices, while simultaneously contending with internal capacity constraints and increased operating expenses brought about by the late arrival of critical manufacturing equipment in both our single serve cup and extracts units.”
“As we turn to 2023 with the requisite equipment to meet our legacy customers’ demands now operational, we are focused on continuing to scale our existing capabilities in service to our customers. Among our top priorities is delivering our Conway, Arkansas extract and ready-to-drink facility on time and on budget, the benefits of which will be material to our business,” he said.
The company said it expects consolidated Adjusted EBITDA to grow 10% to 25% in fiscal 2023, representing a range of $66 million to $75 million.
Westrock has announced acquisitions and a number of investments in Arkansas and abroad in recent months.
Westrock Coffee shares (NASDAQ: WEST) closed trading on Tuesday at $11.60. The company’s stock has traded between a low of $9.34 per share and a high of $14.71 per share over the past 52 weeks.