Westrock Coffee posts $34.6 million loss in 2023

Expenses related to investments in its production facilities and expansion weighed on Westrock Coffee’s fourth-quarter and full-year profits, but the company’s CEO believes the money spent will pay dividends in 2024 and beyond.

Little Rock-based Westrock Coffee Co. reported fourth-quarter sales of $214.96 million, compared to $227.7 million a year ago. The company posted a fourth-quarter loss of $20.1 million, compared to a $31.9 million loss in last year’s fourth quarter.

For the full year 2023, Westrock posted sales of $864.7 million compared to $867.8 million in 2022. The company had a net annual loss of $34.6 million versus a $55.5 million loss one year ago.

“We are pleased to announce our fourth quarter, and full year, 2023 financial results. Last year was a significant transition year for Westrock, and we now enter 2024 with a number of critical system migrations and capital equipment upgrades behind us. The entire team worked tirelessly to modernize our legacy manufacturing operations while simultaneously building a new Extract and Ready-to-Drink plant in Conway, Arkansas, which is scheduled to deliver its first commercial products to customers next month,” said CEO Scott Ford.

Over the past year, Westrock has invested substantially in its operations, including a new Little Rock headquarters, a $70 million distribution center in Conway, another $300 million, five-year expansion project in Conway, the acquisition of Bixby Roasting, and partnered with a milk cooperative for a bottling plant in Dallas.

Other key financial metrics for Westrock for the year include:

• Beverage Solutions segment contributed $722.9 million of net sales and $41.6 million of Adjusted EBITDA for the year ended Dec. 31, 2023, compared to $685.3 million and $54 million, respectively, for the year ended Dec. 31, 2022.
• Sustainable Sourcing & Traceability segment, net of intersegment revenues, contributed $141.8 million of net sales and $3.5 million of Adjusted EBITDA for the year ended Dec. 31, 2023, compared to $182.6 million and $6.1 million, respectively, in the year ended Dec. 31, 2022.
• On Dec. 31, 2023, the company had approximately $147.2 million of unrestricted cash and undrawn borrowings under its revolving credit facility.

Shares of Westrock Coffee (NASDAQ: WEST) closed trading on Tuesday at $9.14. The company’s stock has traded between $6.88 and $12.90 per share over the past 52 weeks.

Little Rock-based Westrock Coffee is an integrated coffee, tea, and extracts provider. It has offices in 10 countries and sources coffee and tea from 35 countries of origin.