United States’ Westrock Coffee Company has reported strong third quarter results for 2024 despite a “challenging macroeconomic environment for the consumer”.
CEO and Co-founder Scott T. Ford says this is the third consecutive quarter of good, combined segment, year-over-year performance, which is driven by improvements in the base business. The company’s Conway extract and ready-to-drink manufacturing plant – which opened in June 2024 – will not see substantive revenues until early 2025.
Ford says more than a dozen new customers are expected to place orders in the first quarter of 2025, and are expected to produce more Consolidated Adjusted EBITDA (annual earnings before interest, taxes, depreciation, and amortisation) than the current base business.
As part of its third quarter 2024 results, the company reported net sales at US$220.9 million, an increase of $1.2 million, or 0.6 per cent, compared to the third quarter of 2023.
Gross profit for the third quarter of 2024 was $37.1 million, compared to a gross profit of $35.1 million for the third quarter of 2023.
Meanwhile, net loss for the period was $14.3 million, compared to a net income of $16.6 million for the third quarter of 2023.
The $14.3 million net loss for the third quarter of 2024 included $2.5 million of transaction, restructuring, and integration expense, $7.9 million of pre-production costs related to the Conway extract and ready-to-drink facility, $4 million of scale-up costs related to the Conway facility, $1.2 million of impairment charges related to its previously announced plant closures, and $5.5 million non-cash gains from the change in fair value of warrant liabilities.
The $16.6 million net income for the third quarter of 2023 included $3.1 million of transaction, restructuring and integration expense, and $3 million of pre-production costs related to the Conway facility.
