Westrock Coffee reports $19 million Q3 loss

Despite strong sales growth, Conway-based Westrock Coffee reported a quarterly loss of $19.1 million. The coffee, tea and beverage manufacturer has been in an aggressive expansion mode, adding production capacity, new customers and a growth in market share.

For the third quarter, Westrock Coffee reported sales of $354.8 million, an increase of 60.7% versus one year ago. The company’s third quarter net loss was $19.1 million compared to a net loss of $14.3 million in the prior year period.

The quarterly loss of $0.05 per share was in line with consensus estimates from analysts. This compares to a loss of $0.05 per share a year ago.

“We are pleased to announce another quarter of record results, which reflect the strength of our customer-centered model and the benefits of the strategic investments that we have made over the past three years. We remain on track toward our goal of becoming the premiere integrated, strategic supplier to the pre-eminent global coffee, tea and energy beverage brands,” said Scott T. Ford, CEO and co-founder of Westrock Coffee.

Ford was also recently announced as an inductee into the Arkansas Business Hall of Fame.

Earlier this week, Westrock said it sold and issued in a private placement $30.0 million in aggregate principal amount of 5.00% convertible senior notes due 2031. The notes are senior unsecured obligations of the company, and bear interest at a rate equal to 5.00% per year. They are convertible into shares of the company’s common stock in certain circumstances and during certain periods at a conversion price of $5.25 per share, subject to adjustment.

Westrock Coffee shares (NASDAQ: WEST) closed the week at $3.87. The company’s stock has traded between a low of $3.59 per share and $8.29 per share over the past 52 weeks.