Coffee Service

Westrock Coffee lifts Q1 2023 results, reaffirms FY guidance

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May 16, 2023

Westrock Coffee Co., a coffee provider to the retail, foodservice, convenience store, travel center and hospitality industries, lifted its Q1 2023 sales and improved its loss over the prior year period, according to an earnings release. Highlights include:

• Consolidated net sales rose 10% from $186.4 million in Q1 2022 to $205.4 million for the quarter ending March 31, 2023.
• Net loss improved from $4.7 million to $4.3 million in the comparative quarters. The $4.7 million loss for the first quarter of 2023 included $2.5 million of acquisition, restructuring and integration expense.
• Loss per common share improved from 34 cents to 6 cents on a basic basis and from 34 cents to 13 cents on a diluted basis.

Shares traded today at $10.74 against a 52-week range of $9.34-$14.71.

The $205.4 million in quarterly revenue missed analyst estimates by $11.98 million while the GAAP EPS of a 13-cent loss missed expectations by 12 cents, according to Seeking Alpha.

"We are pleased to report our first quarter results which continue to reflect the key product expansions of our growing platform, even as we work hard to bring through all of the potential EBITDA into our results," Scott Ford, co-founder and CEO, said in the press release. "As 2023 begins to take shape, we are focused on our two major initiatives of successfully launching our Conway extract and ready-to-drink facility in the first quarter of 2024 and continuing the maturation of our existing operations to be able to capture the profitability intrinsically available from our growing large-scale, global customer base."

The company is reiterating its guidance for consolidated adjusted EBITDA to grow 10% to 25% in full-year 2023, representing a range of $66 million to $75 million.