Westrock Coffee Company (WEST) Q4 2023 earnings summary

Executive summary

• FY23 net sales were $864.7 million, down 0.4% YoY; Adjusted EBITDA was $45.1 million, down 25% YoY.

• The year was a transition period, with legacy operations modernized and the Conway Extract and RTD facility scheduled to deliver its first commercial products in April 2024.

Financial highlights

• Q4 net sales were $215.0 million, down 5.6% YoY; gross profit was $34.8 million, including $0.9 million of non-cash mark-to-market losses, versus $34.3 million including $2.7 million of losses in Q4 2022.

• Q4 net loss was $20.1 million versus $31.9 million; Q4 operating loss was $6.4 million versus operating income of $1.0 million.

• Q4 Adjusted EBITDA was $13.7 million, down $3.7 million YoY.

• FY23 gross profit was $139.9 million, including $0.1 million of non-cash mark-to-market gains, versus $152.8 million including $3.5 million of losses in FY22.

• FY23 net loss was $34.6 million versus $55.5 million; operating loss was $20.4 million versus operating income of $8.7 million.

Outlook and guidance

• FY24 consolidated Adjusted EBITDA guidance is $60 million to $80 million; the broad range reflects the Conway facility startup and customer commercialization ramp.

• Actual results may vary materially; forecasted Adjusted EBITDA cannot be reconciled to GAAP net income without unreasonable effort due to uncertain items, including derivative mark-to-market changes and warrant fair-value changes.