Coffee, tea, and extracts provider Westrock Coffee has released its second quarter results for 2024.
According to the report, net sales in the quarter totalled $208.4 million and showed a decrease of $16.3 million, or 7.3 per cent, compared to the second quarter of 2023.
Other key takeaways included an increase in earnings before interest, taxes, depreciation, and amortisation (EBITDA). The results also saw a net loss of $17.8 million, due to a $4.4 million of transaction, restructuring, and integration expense, $13.6 million start-up costs related to the company’s new facility in Arkansas, and $1.6 million of non-cash gains from the change in fair value of warrant liabilities.
“The second quarter of 2024 was an important quarter at Westrock Coffee for several reasons. First, it represents our second consecutive quarter of year-over-year growth in Adjusted EBITDA, up 31.8 per cent in the first quarter and now up 20.8 per cent in the second quarter, while our beverage solutions adjusted EBITDA margin improved almost 200 basis points, year over year. And, perhaps more importantly, the second quarter marked our first commercial sale of multi-serve bottles and first commercial production of cans, from our Conway extract and ready-to-drink facility,” says Westrock Coffee CEO and Co-Founder Scott T. Ford.
Following the report, gross profit for the second quarter of 2024 was $41.4 million, and included $1.5 million of non-cash mark-to-market gains. In comparison to the second quarter of 2023, this showed an increase from a gross profit of $35.7 million, which included $1.0 million of non-cash mark-to-market gains.
In addition to this, the brand’s beverage solutions segment contributed to a total of $163.3 million of net sales and $13.2 million of Adjusted EBITDA for the second quarter of 2024, while SS&T segment, net of intersegment revenues, contributed to $45.1 million of net sales and $0.4 million of Adjusted EBITDA for the second quarter of 2024.
In terms of the company’s outlook for the rest of 2024 and leading into 2025, it is updating its criteria for Adjusted EBITDA which means it now expects it to be between $60 million and $65 million for the fiscal year of 2024. The release also highlights the brand’s guidance on Adjusted EBITDA for the 2025 fiscal year.
“Given our updated sales ramp visibility for our Conway extract and RTD plant, we are narrowing our 2024 guidance range to $60 – $65 million of Adjusted EBITDA, while simultaneously reaffirming our preliminary guidance for Adjusted EBITDA of $115 million in fiscal year 2025,” says Ford.
For details on the full report, click here.
