Westrock Coffee Company (WEST) Q1 2025 earnings summary

Executive summary

• Net sales rose 11.1% year-over-year to $213.8 million for Q1 2025, driven by higher average sales prices and increased core coffee volumes, but gross profit declined 22.0% to $29.1 million.

• Net loss widened to $27.2 million from $23.6 million in the prior year, with consolidated adjusted EBITDA at $8.2 million, including $3.3 million in Conway scale-up costs.

• Segment-adjusted EBITDA for beverage solutions and SS&T combined reached $11.5 million, up 3.3% over prior year, in line with guidance.

• Commercial launches and scale-up of Conway, Arkansas manufacturing facilities drove performance, with significant production ramp-up underway.

• Gross profit margin declined to 13.6% from 19.4% year-over-year, reflecting higher commodity costs and increased cost of sales.

Financial highlights

• Beverage Solutions segment net sales increased 3.8% to $164.1 million, while SS&T segment sales grew 44.4% to $49.7 million, with segment-adjusted EBITDA rising to $1.9 million from $0.3 million.

• Loss per share was $(0.29), compared to $(0.27) in Q1 2024.

• Cash and cash equivalents at quarter-end were $33.1 million, with restricted cash of $9.0 million.

• Capital expenditures totaled $41.3 million, with $40.3 million allocated to growth projects, mainly for Conway Facility expansion.

• Total debt (current and long-term) increased to $429.5 million from $390.3 million at year-end.

Outlook and guidance

• Management reaffirmed 2025 and 2026 guidance for Consolidated Adjusted EBITDA, Segment Adjusted EBITDA, and secured net leverage ratio.

• Full-year 2025 combined segment-adjusted EBITDA expected between $75 million and $88 million, up ~35% over 2024.

• First half 2025 combined segment-adjusted EBITDA expected between $27.5 million and $34 million, up ~25% year-over-year.

• Management expects continued volume growth and successful scale-up at the Conway facility.

• No changes to forward guidance despite macroeconomic and political volatility.