Westrock Coffee Company (WEST) Q4 2024 earnings summary

Executive summary

• Achieved significant progress in strategic execution, with combined Segment Adjusted EBITDA of $21 million in Q4 2024, up 53% year-over-year, and $60 million for the full year, up 33% year-over-year, in line with forecasts.

• Net sales for 2024 were $850.7 million, down 1.6% year-over-year, while gross profit rose 10% to $153.8 million.

• Net loss widened to $80.3 million from $34.6 million in 2023, impacted by scale-up costs at the Conway Facility.

• Major investments of nearly $400 million in new manufacturing and distribution facilities, positioning for substantial future growth and capacity expansion.

• Secured contracts with over a dozen global CPG brands and retailers, filling over 80% of initial production and packaging capacity at the new Conway facility.

Financial highlights

• Q4 2024 net sales increased 6.5% year-over-year to $229.0 million; gross profit rose 9.2% to $38.0 million.

• Full year 2024 consolidated adjusted EBITDA was $47.2 million, including $12.8 million in Conway scale-up costs; Segment Adjusted EBITDA in Beverage Solutions grew 29% to $53.6 million, and SS&T grew 84% to $6.4 million.

• Q4 consolidated adjusted EBITDA was $13.3 million, burdened by $7.6 million in Conway scale-up costs.

• Basic and diluted loss per share for 2024 was $(0.89), compared to $(0.43) in 2023.

• Cash and cash equivalents at year-end were $26.2 million, with total assets of $1.10 billion.

Outlook and guidance

• 2025 consolidated adjusted EBITDA guidance is $66.5 million (including $15 million Conway scale-up costs); 2026 guidance is $140 million (no scale-up costs).

• 2025 consolidated Adjusted EBITDA guidance: $42.5M–$49.0M (1H), $17.5M–$24.0M (2H); 2026: $130M–$150M.

• Segment Adjusted EBITDA expected at $75 million (Beverage Solutions) and $6.5 million (SS&T) in 2025; $133.5 million and $6.5 million, respectively, in 2026.

• Leverage ratio expected to improve from 5.70x (June 2025) to 3.00x (end of 2026).

• Guidance incorporates conservatism for potential demand softness due to higher coffee prices and ramp-up timing at new facilities.