Westrock Coffee posts smaller Q2 loss
by August 8, 2024 8:39 pm 144 views
Westrock Coffee posted another quarterly loss – albeit a smaller one than a year ago – as the Conway-based coffee, tea and extract company continues to search for its footing amid its expansion of facilities and rapid startup growth.
The company reported Thursday (Aug. 8) a $17.759 million second quarter loss compared to a $26.811 million loss a year ago. Earnings was a 20 cent per share loss compared to a 35 cent per share loss a year ago.
Revenue in the second quarter was $208.389 million versus $224.694 million in the year-earlier period, a seven percent decline.
There were a number of one-time charges during the quarter which contributed to the $17.759 million loss. They included $4.4 million of transaction, restructuring and integration expense; $13.6 million of start-up costs related to its Conway extract and ready-to-drink facility; and $1.6 million of non-cash gains from the change in fair value of warrant liabilities.
Westrock CEO Scott Ford was upbeat about the quarter, citing improvements in margins and a new product line that will allow new business opportunities in the bottled and canned drink business.
“The second quarter of 2024 was an important quarter at Westrock Coffee for several reasons,” Ford noted in the earnings report. “First, it represents our second consecutive quarter of year-over-year growth in Adjusted EBITDA – up 31.8% in the first quarter and now up 20.8% in the second quarter, while our Beverage Solutions Adjusted EBITDA margin improved almost 200 basis points, year over year.”
“[P]erhaps more importantly, the second quarter marked our first commercial sale of multi-serve bottles, and first commercial production of cans, from our Conway extract and ready-to-drink facility. Also, given our updated sales ramp visibility for our Conway extract and RTD plant, we are narrowing our 2024 guidance range to $60-$65 million of Adjusted EBITDA, while simultaneously reaffirming our preliminary guidance for Adjusted EBITDA of $115 million in fiscal year 2025,” Ford added.
Westrock Coffee shares (NASDAQ: WEST) closed Thursday (Aug. 8) at $9.34. Over the past 52 weeks, Westrock’s stock traded between $6.88 per share and $11.21 per share.