United States-based Westrock Coffee Company has reported its financial results for the fourth quarter and full year 2024.
Westrock reported a 10 per cent increase in gross profit in 2024, reaching US$153.8 million. However, the company reported a net loss of $80.3 million for the year, a larger loss compared to the $34.6 million net loss recorded in 2023.
For the full year 2024, Westrock Coffee achieved net sales of $850.7 million, a decline of 1.6 per cent compared to 2023. Consolidated adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) for the year was $47.2 million, which included $12.8 million in scale-up costs associated with the company’s Conway Facility. This compares to a consolidated adjusted EBITDA of $45.1 million in 2023, which did not include any scale-up costs.
“Westrock Coffee’s value proposition in the market is to be the premier integrated strategic supplier to the pre-eminent coffee, tea, and energy beverage brands globally,” says Westrock Co-Founder and CEO Scott Ford.
“And, in 2024 we made considerable progress executing against this strategy as evidenced by the dozen new major brands that we began to provide product development and manufacturing services to.
“These relationships helped us exit 2024 with 4Q Segment Adjusted EBITDA growth in both our reportable segments of over 50 per cent, and leaves us poised for more of the same over the next couple of years as the major new contracts we have recently won begin to flow through the new $400 million manufacturing complex in Conway, Arkansas that comes online at scaled production levels this month.”
In terms of segment performance, the Beverage Solutions segment reported net sales of $659.4 million, a decrease of 8.8 per cent. Despite the decline in sales, the segment’s adjusted EBITDA increased by 28.9 per cent, reaching $53.6 million. The Sustainable Sourcing & Traceability (SS&T) segment, on the other hand, saw a significant increase in both net sales and adjusted EBITDA. Net sales for the SS&T segment grew by 34.9 per cent, totalling $191.3 million, while adjusted EBITDA surged by 84.1 per cent, reaching $6.4 million.
For the fourth quarter of 2024, Westrock Coffee posted net sales of $229 million, a 6.5 per cent increase compared to the same period in 2023. The company’s gross profit for the quarter rose by 9.2 per cent, amounting to $38 million.
However, Westrock’s net loss for the fourth quarter was $24.6 million, a slightly larger loss than the $20.1 million net loss reported in the same quarter of 2023. Consolidated adjusted EBITDA for the fourth quarter stood at $13.3 million, which included $7.6 million in scale-up costs associated with the Conway Facility. This was a small decrease from the $13.7 million in adjusted EBITDA reported for the fourth quarter of 2023, which did not include scale-up costs.
Looking ahead, the company is optimistic about its future growth, driven by the expansion of its new manufacturing facility and new contracts that are expected to contribute to revenue in the coming years.
