Coffee Service

Westrock Coffee reports mixed Q2 2023 results

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August 10, 2023

Westrock Coffee Co., a coffee provider to the retail, foodservice, convenience store, travel center and hospitality industries, reported a sales gain and an earnings loss for Q2 2023 against the prior year period, according to an earnings report. Highlights include:

• Consolidated net sales rose 0.6% from $223.4 million in Q2 2022 to $224.7 million for the quarter ending June 30, 2023.
• Net loss for the period extended from $5.8 million to $26.8 million, which included $2.9 million of acquisition, restructuring and integration expense and $11.8 million of non-cash expense from the change in fair value of warrant liabilities.
• Net loss improved from 37 cents to 35 cents on both a basic and diluted basis.

Shares traded at $10.56 today against a 52-week range of $9.34 to $14.71.

The $224.7 million in quarterly revenue missed analyst expectations by $13.75 million while the GAAP EPS loss of 35 cents missed estimates by 33 cents, according to Seeking Apha.

"We are pleased to announce today our second quarter financial results and the closing of our $118.8 million equity raise, which provides us with the capital necessary to fully fund the expanded opportunities we were seeing for our Conway extract and RTD facility," Scott Ford, CEO and co-founder, said in the press release.

The company reaffirmed its annual guidance for 2023 consolidated adjusted EBITDA to grow flat to 10% over 2022.