Coffee Service

Westrock Coffee boosts Q4, FY sales, earnings take a hit

Image provided by Westrock Coffee Co.

March 15, 2023

Westrock Coffee Co. lifted its sales for Q4 and FY 2022 while suffering losses, according to an earnings report. Highlights include:

• Consolidated net sales rose 20%, from $190.4 million in Q4 2021 to $227.7 million for the quarter ending Dec. 31, 2022.
• Net loss rose from $5.23 million to $31.9 million in the comparative quarters. The net loss for Q4 2022 included $4.4 million of acquisition, restructuring and integration expense and $24.5 million of non-cash expense from the change in fair value of warrant liabilities.
• Loss per common share rose from 34 cents to 44 cents on both a basic basis and a diluted basis
• Full year consolidated net sales rose 24%, from $698.1 million in 2021 to $867.9 million in 2022.
• Full year loss rose from $21.3 million to $55.5 million. The loss for 2022 included $13.2 million of acquisition, restructuring and integration expense, $29.7 million of non-cash expense from the change in fair value of warrant liabilities, and $5.9 million of interest expense related to the early extinguishment of debt.
• Loss per common share rose from $1.34 to $1.60 on both a basic and diluted basis in the comparative years.

Shares traded Tuesday at $11.60 against a 52-week range of $9.34-$14.71.

The $227.7 million in quarterly revenue missed analyst expectations by $4.48 million while the 44-cent EPS loss missed expectations by 53 cents, according to Seeking Alpha.

"We are pleased to announce strong growth in net sales, gross profit and adjusted EBITDA for full year 2022," CEO and co-founder Scott Ford said in the press release. "Among our top priorities is delivering our Conway, Arkansas extract and ready-to-drink facility on time and on budget, the benefits of which will be material to our business."

The company expects consolidated adjusted EBITDA to grow 10% to 25% in fiscal 2023, representing a range of $66 million to $75 million.