Westrock Coffee Company has reported consolidated net sales were US$219.6 million in the third quarter of 2023, a US$10.7 million loss and decrease of 4.6 per cent compared to the same time last year.
CEO and Co-founder of Westrock Coffee Company, Scott T. Ford, says the decreased volume demands for traditional roast and ground coffee products at the start of the quarter contributed to weaker earnings before interest, taxes, depreciation and amortisation results than originally estimated.
“While hot coffee volumes have since stabilised and we continue to see great progress in monetising our flavours, extract and ingredients and single serve product portfolios, the negative impact of July and August in hot coffee was too much for the other parts of our business to overcome in the quarter,” Ford says.
Net income for the period sits at US$16.6 million, an increase from 2022’s third quarter. This includes US$3.1 million of acquisition, restructuring and integration expense, $25.1 million of non-cash gains from the change in fair value of warrant liabilities, and US$3 million of start-up costs related to the new Westrock Coffee Conway distribution Centre.
Ford says the construction of the new “extract and ready-to-drink facility” in Conway will help combat losses in hot coffee next year with Westrock planning to begin the facility’s production in the second quarter of 2024.
