Westrock Coffee Company Reports First Quarter 2025 Results and Reaffirms 2025 and 2026 Outlook
Westrock Coffee Company (WEST) reported its Q1 2025 financial results, showing mixed performance. Net sales increased 11.1% to $213.8 million, while gross profit decreased 22% and net loss widened to $27.2 million from $23.7 million year-over-year. The company's Consolidated Adjusted EBITDA was $8.2 million, including $3.3 million in Conway Facility scale-up costs.
The Beverage Solutions segment saw net sales rise 3.8% to $164.1 million, though segment EBITDA declined 11.3%. The Sustainable Sourcing & Traceability segment showed strong growth with net sales up 44.4% to $49.7 million and improved EBITDA of $1.9 million. The company reaffirmed its previously stated guidance for both 2025 and 2026.
Westrock Coffee Company (WEST) ha comunicato i risultati finanziari del primo trimestre 2025, evidenziando una performance mista. Le vendite nette sono aumentate dell'11,1%, raggiungendo 213,8 milioni di dollari, mentre il margine lordo è diminuito del 22% e la perdita netta si è ampliata a 27,2 milioni di dollari rispetto ai 23,7 milioni dell'anno precedente. L'EBITDA rettificato consolidato dell'azienda è stato di 8,2 milioni di dollari, inclusi 3,3 milioni di dollari di costi legati all'espansione dello stabilimento di Conway.
Il segmento Beverage Solutions ha registrato un aumento delle vendite nette del 3,8%, raggiungendo 164,1 milioni di dollari, anche se l'EBITDA del segmento è diminuito dell'11,3%. Il segmento Sustainable Sourcing & Traceability ha mostrato una forte crescita con vendite nette in aumento del 44,4% a 49,7 milioni di dollari e un EBITDA migliorato di 1,9 milioni di dollari. L'azienda ha confermato le previsioni precedentemente dichiarate per il 2025 e il 2026.
Westrock Coffee Company (WEST) informó sus resultados financieros del primer trimestre de 2025, mostrando un desempeño mixto. Las ventas netas aumentaron un 11,1% hasta 213,8 millones de dólares, mientras que el beneficio bruto disminuyó un 22% y la pérdida neta se amplió a 27,2 millones de dólares desde 23,7 millones año tras año. El EBITDA ajustado consolidado de la compañía fue de 8,2 millones de dólares, incluyendo 3,3 millones en costos de ampliación de la planta de Conway.
El segmento de Beverage Solutions vio un aumento de las ventas netas del 3,8% hasta 164,1 millones de dólares, aunque el EBITDA del segmento disminuyó un 11,3%. El segmento de Sustainable Sourcing & Traceability mostró un fuerte crecimiento con ventas netas que aumentaron un 44,4% hasta 49,7 millones de dólares y un EBITDA mejorado de 1,9 millones de dólares. La compañía reafirmó sus previsiones previamente establecidas para 2025 y 2026.
Westrock Coffee Company (WEST)는 2025년 1분기 재무 실적을 발표하며 혼재된 성과를 보였습니다. 순매출은 11.1% 증가하여 2억 1,380만 달러를 기록했으나, 총이익은 22% 감소했고 순손실은 전년 대비 2,370만 달러에서 2,720만 달러로 확대되었습니다. 회사의 연결 조정 EBITDA는 820만 달러였으며, 이 중 330만 달러는 콘웨이 시설 확장 비용에 해당합니다.
Beverage Solutions 부문은 순매출이 3.8% 증가하여 1억 6,410만 달러를 기록했으나, 부문 EBITDA는 11.3% 감소했습니다. Sustainable Sourcing & Traceability 부문은 순매출이 44.4% 증가한 4,970만 달러를 기록하며 강한 성장세를 보였고, EBITDA도 190만 달러로 개선되었습니다. 회사는 2025년과 2026년에 대한 기존 가이던스를 재확인했습니다.
Westrock Coffee Company (WEST) a publié ses résultats financiers du premier trimestre 2025, montrant une performance mitigée. Les ventes nettes ont augmenté de 11,1 % pour atteindre 213,8 millions de dollars, tandis que le bénéfice brut a diminué de 22 % et la perte nette s'est creusée à 27,2 millions de dollars contre 23,7 millions d'année en année. L'EBITDA ajusté consolidé de la société s'est élevé à 8,2 millions de dollars, incluant 3,3 millions de dollars de coûts liés à l'extension de l'usine de Conway.
Le segment Beverage Solutions a vu ses ventes nettes augmenter de 3,8 % à 164,1 millions de dollars, bien que l'EBITDA du segment ait diminué de 11,3 %. Le segment Sustainable Sourcing & Traceability a affiché une forte croissance avec des ventes nettes en hausse de 44,4 % à 49,7 millions de dollars et un EBITDA amélioré de 1,9 million de dollars. La société a réaffirmé ses prévisions précédemment communiquées pour 2025 et 2026.
Westrock Coffee Company (WEST) meldete die Finanzergebnisse für das erste Quartal 2025 mit gemischter Leistung. Der Nettoumsatz stieg um 11,1 % auf 213,8 Millionen US-Dollar, während der Bruttogewinn um 22 % sank und der Nettoverlust sich von 23,7 Millionen auf 27,2 Millionen US-Dollar erhöhte. Das konsolidierte bereinigte EBITDA des Unternehmens betrug 8,2 Millionen US-Dollar, einschließlich 3,3 Millionen US-Dollar an Kosten für den Ausbau der Conway-Anlage.
Der Bereich Beverage Solutions verzeichnete einen Nettoumsatzanstieg von 3,8 % auf 164,1 Millionen US-Dollar, obwohl das Segment-EBITDA um 11,3 % zurückging. Der Bereich Sustainable Sourcing & Traceability zeigte starkes Wachstum mit einem Nettoumsatzanstieg von 44,4 % auf 49,7 Millionen US-Dollar und einem verbesserten EBITDA von 1,9 Millionen US-Dollar. Das Unternehmen bestätigte seine zuvor veröffentlichten Prognosen für 2025 und 2026.
- Net sales increased 11.1% to $213.8 million
- Sustainable Sourcing & Traceability segment showed strong growth with 44.4% sales increase
- Successful launch of second single serve cup facility in Conway
- Management reaffirmed 2025 and 2026 guidance
- Net loss widened to $27.2 million from $23.7 million year-over-year
- Gross profit decreased 22%
- Consolidated Adjusted EBITDA declined to $8.2 million from $11.1 million
- Beverage Solutions segment EBITDA decreased 11.3%
Insights
Westrock Coffee shows revenue growth but faces profitability challenges amid expansion costs; outlook remains unchanged despite widening losses.
Westrock Coffee's Q1 2025 results present a mixed financial picture that requires careful analysis. While the company achieved 11.1% revenue growth reaching
The revenue performance was driven by divergent segment results: Beverage Solutions (the larger segment) delivered modest
A critical factor impacting the quarter's performance was
Despite the profitability challenges, management's reaffirmation of both 2025 and 2026 guidance signals confidence that these investments will deliver returns in the coming quarters. This stance indicates the company views the current margin compression as temporary rather than structural.
The key question for Westrock Coffee is whether the revenue growth momentum can be maintained while the profitability metrics recover once the Conway facility reaches optimal utilization. The robust performance in the Sustainable Sourcing & Traceability segment represents a bright spot, potentially providing diversification benefits as the company continues its transformation into "the premiere integrated strategic supplier" for major beverage brands globally.
LITTLE ROCK, Ark., May 08, 2025 (GLOBE NEWSWIRE) -- Westrock Coffee Company (Nasdaq: WEST) (“Westrock Coffee” or the “Company”) today reported financial results for the first quarter ended March 31, 2025.
First Quarter Highlights1
- Consolidated Results
- Net sales were
$213.8 million , an increase of11.1% - Gross profit was
$29.1 million , a decrease of22.0% - Net loss was
$27.2 million , compared to a net loss of$23.7 million in the prior year period - Consolidated Adjusted EBITDA2 was
$8.2 million and included$3.3 million of scale-up costs associated with our Conway Facility, compared to Consolidated Adjusted EBITDA of$11.1 million and no scale-up costs in the prior year period
- Net sales were
- Segment Results
- Beverage Solutions
- Net sales were
$164.1 million , an increase of3.8% - Segment Adjusted EBITDA3 was
$9.6 million , a decrease of11.3%
- Net sales were
- Sustainable Sourcing & Traceability (“SS&T”)
- Net sales were
$49.7 million , an increase of44.4% - Segment Adjusted EBITDA3 was
$1.9 million compared to$0.3 million for the first quarter of 2024
- Net sales were
- Beverage Solutions
Commenting on our results, Scott T. Ford, CEO and Co-founder stated, “We are off to a great start in 2025. Today we are reporting solid financial results for the first quarter, and we continue to make great strides towards our goal of becoming the premiere integrated strategic supplier to the pre-eminent coffee, tea, and energy brands around the world. In our Conway, Arkansas extract and ready-to-drink manufacturing facility, we are making great progress as we scale up the sales volume throughput in the facility, and the launch of our second single serve cup facility in Conway has exceeded our expectations. We remain confident in our ability to deliver against our plan and are reaffirming our previously stated guidance for both 2025 and 2026.”
2025 and 2026 Outlook
The Company is reaffirming its 2025 and 2026 guidance for Consolidated Adjusted EBITDA, Segment Adjusted EBITDA and Beverage Solutions credit agreement secured net leverage ratio, which were provided in its earnings release dated March 11, 2025.
____________________
1 Unless otherwise indicated, all comparisons are to the prior year period.
2 Consolidated Adjusted EBITDA is a non-GAAP financial 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 directly comparable GAAP measure is provided in the tables that accompany this release.
3 Segment Adjusted EBITDA is a segment performance measure, which is required by U.S. GAAP to be disclosed 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 our Conway Facility.
Conference Call Details
Westrock Coffee will host a conference call and webcast at 4:30 p.m. ET today to discuss this release. To participate in the live earnings call and question and answer session, please register HERE and dial-in information will be provided directly to you. The live audio webcast will be accessible in the “Events and Presentations” section of the Company’s Investor Relations website at https://investors.westrockcoffee.com. An archived replay of the webcast will be available shortly after the live event has concluded and will be available for a minimum of 14 days.
About Westrock Coffee
Westrock Coffee is a leading integrated coffee, tea, flavors, extracts, and ingredients solutions provider in the United States, providing coffee sourcing, supply chain management, product development, roasting, packaging, and distribution services to the retail, food service and restaurant, convenience store and travel center, non-commercial account, CPG, and hospitality industries around the world. With offices in 10 countries, the Company sources coffee and tea from numerous countries of origin.
Forward-Looking Statements
Certain statements in this press release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended from time to time. Forward-looking statements generally are accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "predict," "potential," "seem," "seek," "future," "outlook," and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, but are not limited to, our 2025 and 2026 financial outlook, our expectations regarding leverage ratios and compliance with the financial covenants in our credit agreement, expected volume growth in the Company’s core coffee business, our expectations regarding volume commitments from existing single serve customers and new single serve customer volumes, our expectations regarding expense savings from cost reduction and facility consolidation efforts in 2024, certain plans, expectations, goals, projections, and statements about the timing and benefits of the build-out of and the rapid scale up of our RTD can volumes, and the launch and scale up of our RTD glass bottle products from, the Company's Conway, Arkansas extract and ready-to-drink facility, the plans, objectives, expectations, and intentions of Westrock Coffee, and other statements that are not historical facts. These statements are based on information available to Westrock Coffee as of the date hereof and Westrock Coffee is not under any duty to update any of the forward-looking statements after the date of this communication to conform these statements to actual results. These statements are based on various assumptions, whether or not identified in this communication, and on the current expectations of the management of Westrock Coffee as of the date hereof and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and should not be relied on by an investor, or others, as a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Westrock Coffee. These forward-looking statements are subject to a number of risks and uncertainties, including, but not limited to, changes in domestic and foreign business, market (including continued increases in the “C” market price of green coffee), financial, political, and legal conditions; our inability to secure an adequate supply of key raw materials, including green coffee and tea, or disruption in our supply chain, including from tariffs or trade restrictions; risks relating to the uncertainty of the projected financial information with respect to Westrock Coffee; risks related to the rollout of Westrock Coffee's business and the timing of expected business milestones; the effects of competition on Westrock Coffee's business; the ability of Westrock Coffee to issue equity or equity-linked securities or obtain debt financing in the future; Westrock Coffee’s future level of indebtedness, which may reduce funds available for other business purposes and reduce the Company’s operational flexibility; the risk that Westrock Coffee fails to attract, motivate or retain qualified personnel; the risk that Westrock Coffee fails to fully realize the potential benefits of acquisitions or joint ventures or has difficulty successfully integrating acquired companies; the availability of equipment and the timely performance by suppliers involved with the build-out of the Conway, Arkansas extract and ready-to-drink facility; Westrock Coffee’s inability to complete the construction and launch of its planned second RTD can line or RTD glass line as expected or the risk of incurring additional expenses in the process; the loss of significant customers or delays in bringing their products to market; litigation or legal disputes, which could lead us to incur significant liabilities and costs or harm our reputation; and those factors discussed in Westrock Coffee’s Annual Report on Form 10-K, which was filed with the United States Securities and Exchange Commission (the “SEC”) on March 12, 2025, in Part I, Item 1A “Risk Factors” and other documents Westrock Coffee has filed, or will file, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Westrock Coffee does not presently know, or that Westrock Coffee currently believes are immaterial, that could also cause actual results to differ from those contained in the forward-looking statements. In addition, the forward-looking statements reflect Westrock Coffee's expectations, plans, or forecasts of future events and views as of the date of this communication. Westrock Coffee anticipates that subsequent events and developments will cause Westrock Coffee's assessments to change. However, while Westrock Coffee may elect to update these forward-looking statements at some point in the future, Westrock Coffee specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as a representation of Westrock Coffee's assessments as of any date subsequent to the date of this communication. Accordingly, undue reliance should not be placed upon the forward-looking statements.
Contacts
Media:
PR@westrockcoffee.com
Investor Contact:
IR@westrockcoffee.com
| Westrock Coffee Company Condensed Consolidated Balance Sheets (Unaudited) | ||||||||
| (Thousands, except par value) | March 31, 2025 | December 31, 2024 | ||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 33,052 | $ | 26,151 | ||||
| Restricted cash | 8,984 | 9,413 | ||||||
| Accounts receivable, net of allowance for credit losses of | 83,429 | 99,566 | ||||||
| Inventories | 187,383 | 163,323 | ||||||
| Derivative assets | 26,573 | 19,746 | ||||||
| Prepaid expenses and other current assets | 24,399 | 15,444 | ||||||
| Total current assets | 363,820 | 333,643 | ||||||
| Property, plant and equipment, net | 476,270 | 467,011 | ||||||
| Goodwill | 116,111 | 116,111 | ||||||
| Intangible assets, net | 112,853 | 114,879 | ||||||
| Operating lease right-of-use assets | 62,802 | 63,380 | ||||||
| Other long-term assets | 6,848 | 6,756 | ||||||
| Total Assets | $ | 1,138,704 | $ | 1,101,780 | ||||
| LIABILITIES, CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' EQUITY | ||||||||
| Current maturities of long-term debt | $ | 15,062 | $ | 14,057 | ||||
| Short-term debt | 58,790 | 54,659 | ||||||
| Accounts payable | 67,325 | 84,255 | ||||||
| Supply chain finance program | 95,363 | 78,838 | ||||||
| Derivative liabilities | 12,395 | 11,966 | ||||||
| Accrued expenses and other current liabilities | 60,527 | 34,095 | ||||||
| Total current liabilities | 309,462 | 277,870 | ||||||
| Long-term debt, net | 356,625 | 325,880 | ||||||
| Convertible notes payable - related party, net | 49,723 | 49,706 | ||||||
| Deferred income taxes | 16,767 | 14,954 | ||||||
| Operating lease liabilities | 59,605 | 60,692 | ||||||
| Other long-term liabilities | 1,347 | 1,346 | ||||||
| Total liabilities | 793,529 | 730,448 | ||||||
| Commitments and contingencies | ||||||||
| Series A Convertible Preferred Shares, | 273,764 | 273,850 | ||||||
| Shareholders' Equity | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, | 946 | 942 | ||||||
| Additional paid-in-capital | 521,742 | 519,878 | ||||||
| Accumulated deficit | (470,140 | ) | (442,922 | ) | ||||
| Accumulated other comprehensive income | 18,863 | 19,584 | ||||||
| Total shareholders' equity | 71,411 | 97,482 | ||||||
| Total Liabilities, Convertible Preferred Shares and Shareholders' Equity | $ | 1,138,704 | $ | 1,101,780 | ||||
| Westrock Coffee Company Condensed Consolidated Statements of Operations (Unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
| (Thousands, except per share data) | 2025 | 2024 | ||||||
| Net sales | $ | 213,796 | $ | 192,500 | ||||
| Costs of sales | 184,723 | 155,226 | ||||||
| Gross profit | 29,073 | 37,274 | ||||||
| Selling, general and administrative expense | 40,344 | 44,440 | ||||||
| Transaction, restructuring and integration expense | 1,791 | 2,964 | ||||||
| (Gain) loss on disposal of property, plant and equipment | 7 | 2 | ||||||
| Total operating expenses | 42,142 | 47,406 | ||||||
| Loss from operations | (13,069 | ) | (10,132 | ) | ||||
| Other (income) expense | ||||||||
| Interest expense | 12,599 | 7,579 | ||||||
| Change in fair value of warrant liabilities | — | (41 | ) | |||||
| Other, net | (278 | ) | 135 | |||||
| Loss before income taxes and equity in earnings from unconsolidated entities | (25,390 | ) | (17,805 | ) | ||||
| Income tax expense (benefit) | 1,828 | 5,815 | ||||||
| Equity in (earnings) loss from unconsolidated entities | — | 53 | ||||||
| Net loss | $ | (27,218 | ) | $ | (23,673 | ) | ||
| Amortization of Series A Convertible Preferred Shares | 86 | 87 | ||||||
| Net loss attributable to common shareholders | $ | (27,132 | ) | $ | (23,586 | ) | ||
| Loss per common share: | ||||||||
| Basic | $ | (0.29 | ) | $ | (0.27 | ) | ||
| Diluted | $ | (0.29 | ) | $ | (0.27 | ) | ||
| Weighted-average number of shares outstanding: | ||||||||
| Basic | 94,298 | 88,095 | ||||||
| Diluted | 94,298 | 88,095 | ||||||
| Westrock Coffee Company Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
| (Thousands) | 2025 | 2024 | ||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (27,218 | ) | $ | (23,673 | ) | ||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 11,755 | 7,548 | ||||||
| Equity-based compensation | 3,331 | 2,455 | ||||||
| Provision for credit losses | (166 | ) | 441 | |||||
| Amortization of deferred financing fees included in interest expense | 893 | 1,050 | ||||||
| Write-off of unamortized deferred financing fees | 137 | — | ||||||
| (Gain) loss on disposal of property, plant and equipment | 7 | 2 | ||||||
| Mark-to-market adjustments | (2,073 | ) | (1,640 | ) | ||||
| Change in fair value of warrant liabilities | — | (41 | ) | |||||
| Foreign currency transactions | (141 | ) | 245 | |||||
| Deferred income tax expense (benefit) | 1,828 | 5,815 | ||||||
| Other | 449 | 343 | ||||||
| Change in operating assets and liabilities: | ||||||||
| Accounts receivable | 14,553 | 8,397 | ||||||
| Inventories | (27,329 | ) | 8,907 | |||||
| Derivative assets and liabilities | (3,589 | ) | 1,302 | |||||
| Prepaid expense and other assets | 1,567 | 494 | ||||||
| Accounts payable | 899 | (18,038 | ) | |||||
| Accrued liabilities and other | 2,976 | 14,372 | ||||||
| Net cash (used in) provided by operating activities | (22,121 | ) | 7,979 | |||||
| Cash flows from investing activities: | ||||||||
| Additions to property, plant and equipment | (41,291 | ) | (68,914 | ) | ||||
| Additions to intangible assets | (20 | ) | (43 | ) | ||||
| Proceeds from sale of equity method investments and non-marketable securities | 500 | — | ||||||
| Proceeds from sale of property, plant and equipment | 26 | 21 | ||||||
| Net cash used in investing activities | (40,785 | ) | (68,936 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Payments on debt | (34,064 | ) | (100,462 | ) | ||||
| Proceeds from debt | 80,073 | 73,813 | ||||||
| Payments on supply chain financing program | (32,844 | ) | (38,980 | ) | ||||
| Proceeds from supply chain financing program | 49,369 | 39,610 | ||||||
| Proceeds from convertible notes payable | — | 22,000 | ||||||
| Proceeds from convertible notes payable - related party | — | 50,000 | ||||||
| Payment of debt issuance costs | (2,176 | ) | (2,934 | ) | ||||
| Net proceeds from (repayments of) repurchase agreements | 13,473 | (4,933 | ) | |||||
| Payment for taxes for net share settlement of equity awards | (1,549 | ) | (1,141 | ) | ||||
| Net cash provided by financing activities | 72,282 | 36,973 | ||||||
| Effect of exchange rate changes on cash | (52 | ) | (80 | ) | ||||
| Net increase (decrease) in cash and cash equivalents and restricted cash | 9,324 | (24,064 | ) | |||||
| Cash and cash equivalents and restricted cash at beginning of period | 35,564 | 37,840 | ||||||
| Cash and cash equivalents and restricted cash at end of period | $ | 44,888 | $ | 13,776 | ||||
The total cash and cash equivalents and restricted cash at March 31, 2025 and 2024 is as follows:
| (Thousands) | March 31, 2025 | March 31, 2024 | ||||||
| Cash and cash equivalents | $ | 33,052 | $ | 12,571 | ||||
| Restricted cash | 8,984 | 1,205 | ||||||
| Cash and cash equivalents - held for sale | 2,852 | — | ||||||
| Total | $ | 44,888 | $ | 13,776 | ||||
| Westrock Coffee Company Summary of Segment Results (Unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
| (Thousands) | 2025 | 2024 | ||||||
| Beverage Solutions | ||||||||
| Net sales | $ | 164,079 | $ | 158,059 | ||||
| Segment Adjusted EBITDA1 | 9,583 | 10,800 | ||||||
| Sustainable Sourcing & Traceability | ||||||||
| Net sales2 | $ | 49,717 | $ | 34,441 | ||||
| Segment Adjusted EBITDA1 | 1,928 | 342 | ||||||
____________________
1 - Segment Adjusted EBITDA is a segment performance measure, which is required by U.S. GAAP to be disclosed 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 our Conway Facility. Refer to the Notes to Condensed Consolidated Financial Statements included in our Quarterly Report on Form 10-Q for additional information regarding our segments and a reconciliation of Segment Adjusted EBITDA to loss before income taxes and equity in earnings from unconsolidated entities.
2 - Net of intersegment revenues.
| Westrock Coffee Company Calculation of Beverage Solutions Credit Agreement Secured Net Leverage Ratio (Unaudited) | ||||
| (Thousands, except leverage ratio) | Trailing Twelve-Months | |||
| Beverage Solutions Segment Adjusted EBITDA | $ | 52,422 | ||
| Permissible credit agreement adjustments1 | 7,858 | |||
| Trailing Twelve-Months Credit Agreement Adjusted EBITDA | $ | 60,280 | ||
| End of period: | ||||
| Term loan facility | $ | 153,125 | ||
| Delayed draw term loan facility | 47,500 | |||
| Revolving credit facility | 147,500 | |||
| Letters of credit outstanding | 2,560 | |||
| Secured debt | 350,685 | |||
| Beverage Solutions unrestricted cash and cash equivalents | (30,798 | ) | ||
| Secured net debt | $ | 319,887 | ||
| Beverage Solutions Credit Agreement secured net leverage ratio | 5.31x | |||
____________________
1 – Primarily consists of
The Company is required to maintain compliance with, among other things, a secured net leverage ratio under the terms of its credit agreement (the “Credit Agreement”) among the Company, Westrock Beverage Solutions, LLC, as the borrower, Wells Fargo Bank, N.A., as administrative agent, collateral agent, and swingline lender, Wells Fargo Securities, LLC, as sustainability structuring agent, and each issuing bank and lender party thereto. The secured net leverage ratio is calculated as secured net debt divided by Adjusted EBITDA for the trailing twelve-month period, each as defined in the Credit Agreement, and is applicable only to our Beverage Solutions segment.
Management believes that our secured net leverage ratio provides useful information to investors and other users of our financial data regarding the Company’s compliance with its material financial covenants. Failure to comply with the covenants in the Credit Agreement or make payments when due could result in an event of default, which, if not cured or waived, could accelerate our repayment obligations under the Credit Agreement and could result in a default and acceleration under other agreements containing cross-default provisions. Under these circumstances, we might not have sufficient funds or other resources to satisfy all of our obligations. As of the date of this press release, the Company is in compliance with its financial covenants.
| Westrock Coffee Company Reconciliation of Net (Loss) Income to Non-GAAP Consolidated Adjusted EBITDA (Unaudited) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| (Thousands) | 2025 | 2024 | ||||||
| Net loss | $ | (27,218 | ) | $ | (23,673 | ) | ||
| Interest expense | 12,599 | 7,579 | ||||||
| Income tax expense (benefit) | 1,828 | 5,815 | ||||||
| Depreciation and amortization | 11,755 | 7,548 | ||||||
| EBITDA | (1,036 | ) | (2,731 | ) | ||||
| Transaction, restructuring and integration expense | 1,791 | 2,964 | ||||||
| Change in fair value of warrant liabilities | — | (41 | ) | |||||
| Equity-based compensation | 3,331 | 2,455 | ||||||
| Conway extract and ready-to-drink facility pre-production costs | 4,449 | 9,796 | ||||||
| Mark-to-market adjustments | (2,073 | ) | (1,640 | ) | ||||
| (Gain) loss on disposal of property, plant and equipment | 7 | 2 | ||||||
| Other | 1,755 | 337 | ||||||
| Consolidated Adjusted EBITDA | $ | 8,224 | $ | 11,142 | ||||
Non-GAAP Financial Measures
We refer to EBITDA and Consolidated Adjusted EBITDA in our analysis of our results of operations, which are not required by, or presented in accordance with, accounting principles generally accepted in the United States (“GAAP”). While we believe that net (loss) income, as defined by GAAP, is the most appropriate earnings measure, we also believe that EBITDA and Consolidated Adjusted EBITDA are important non-GAAP supplemental measures of operating performance as they contribute to a meaningful evaluation of the Company’s future operating performance and comparisons to the Company’s past operating performance. The Company believes that providing these non-GAAP financial measures to investors helps investors evaluate the Company’s operating performance, profitability and business trends in a way that is consistent with how management evaluates such performance.
We define “EBITDA” as net (loss) income, as defined by GAAP, before interest expense, provision for income taxes and depreciation and amortization. We define “Consolidated Adjusted EBITDA” as EBITDA before equity-based compensation expense and the impact, which may be recurring in nature, of transaction, restructuring and integration related costs, impairment charges, changes in the fair value of warrant liabilities, non-cash mark-to-market adjustments, certain non-capitalizable costs necessary to place the Conway extract and ready-to-drink facility into commercial production, the write off of unamortized deferred financing costs, costs incurred as a result of the early repayment of debt, gains or losses on dispositions, and other similar or infrequent items (although we may not have had such charges in the periods presented). We believe EBITDA and Consolidated Adjusted EBITDA are important supplemental measures to net (loss) income because they provide additional information to evaluate our operating performance on an unleveraged basis.
Since EBITDA and Consolidated Adjusted EBITDA are not measures calculated in accordance with GAAP, they should be viewed in addition to, and not be considered as alternatives for, net income (loss) determined in accordance with GAAP. Further, our computations of EBITDA and Consolidated Adjusted EBITDA may not be comparable to that reported by other companies that define EBITDA and Consolidated Adjusted EBITDA differently than we do.
FAQ
What were Westrock Coffee's (WEST) Q1 2025 earnings results?
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