LITTLE ROCK, Ark., USA – Westrock Coffee Company yesterday reported financial results for the third quarter ended September 30, 2024. Scott T. Ford, CEO and Co-founder stated, “Westrock Coffee Company had a strong third quarter despite what continues to be a challenging macroeconomic environment for the consumer.
This is the third consecutive quarter of impressive, combined segment, year over year performance, which is driven by improvements in our base business, as the Conway extract and ready-to-drink facility will not see substantive revenues until early 2025.
As it relates to the new Conway facility, the sales and customer onboarding work that the team has excelled at over the past two years is nothing short of phenomenal.
It has resulted in more than a dozen new customers who will begin placing orders in the first quarter of 2025, from whom, once fully onboarded, are expected to produce more annual Consolidated Adjusted EBITDA than the entirety of our current base business.
This is the promised earnings power of transitioning this facility from a construction and product development project to a filled and operational production plant.”
Third Quarter Highlights
Consolidated Results
- Net sales were $220.9 million for the third quarter of 2024, an increase of $1.2 million, or 0.6%, compared to the third quarter of 2023.
- Gross profit for the third quarter of 2024 was $37.1 million and included $0.5 million of non-cash mark-to-market losses, compared to gross profit of $35.1 million for the third quarter of 2023, which included $1.2 million of non-cash mark-to-market losses.
- Net loss for the period was $14.3 million, compared to a net income of $16.6 million for the third quarter of 2023. The $14.3 million net loss for the third quarter of 2024 included $2.5 million of transaction, restructuring and integration expense, $7.9 million of pre-production costs related to our Conway, Arkansas extract and ready-to-drink facility (the “Conway Facility”), $4.0 million of scale-up costs related to the Conway Facility, $1.2 million of impairment charges related to our previously announced plant closures, and $5.5 million non-cash gains from the change in fair value of warrant liabilities. The $16.6 million net income for the third quarter of 2023 included $3.1 million of transaction, restructuring and integration expense, $3.0 million of pre-production costs related to our Conway Facility, and $25.1 million of non-cash gains from the change in fair value of warrant liabilities.
- Consolidated Adjusted EBITDA1 for the third quarter of 2024 was $10.3 million and included $4.0 million of scale-up costs associated with our Conway Facility. Consolidated Adjusted EBITDA for the third quarter of 2023 was $11.6 million and did not include any scale-up costs associated with our Conway Facility.
Segment Results
- Beverage Solutions segment contributed $164.0 million of net sales and had Segment Adjusted EBITDA2 of $11.8 million for the third quarter of 2024, compared to $176.8 million and $9.9 million, respectively, for the third quarter of 2023.
- Sustainable Sourcing & Traceability (“SS&T”) segment, net of intersegment revenues, contributed $56.9 million of net sales and had Segment Adjusted EBITDA of $2.5 million for the third quarter of 2024, compared to $42.8 million and $1.7 million, respectively, for the third quarter of 2023.
1 Consolidated Adjusted EBITDA is a non-GAAP measure. The definition of Consolidated Adjusted EBITDA is included under the section titled “Non-GAAP Financial Measures” and a reconciliation of Consolidated Adjusted EBITDA to the most comparable GAAP measure is provided in the tables that accompany this release.
2 Segment Adjusted EBITDA is a segment performance measure. While not a U.S. GAAP measure, a segment performance measure is required to be disclosed by U.S. GAAP in accordance with FASB Accounting Standards Codification 280, Segment Reporting. Segment Adjusted EBITDA is defined consistently with Consolidated Adjusted EBITDA, except that it excludes scale-up costs related to the Conway Facility.
