Westrock fee pany(US:WEST)2025-05-08 21:16Financial Performance - Net sales for the three months ended March 31, 2025, were $213,796,000, an increase of 11.1% compared to $192,500,000 for the same period in 2024[10]. - The net loss for the three months ended March 31, 2025, was $27,218,000, compared to a net loss of $23,673,000 in the same period of 2024, indicating a 15.5% increase in losses[11]. - Comprehensive loss attributable to common shareholders for Q1 2025 was $27,853,000, compared to $23,370,000 in Q1 2024, indicating a 19.0% increase in comprehensive losses[11]. - For the three months ended March 31, 2025, the company reported a net loss attributable to common shareholders of $27,132,000, compared to a net loss of $23,586,000 for the same period in 2024, resulting in a basic and diluted loss per share of $0.29, up from $0.27[144][148]. Revenue and Sales - Total net sales for the Beverage Solutions segment were $164,079,000, while the Sustainable Sourcing & Traceability segment reported net sales of $49,717,000, leading to total net sales of $213,796,000 for Q1 2025, an increase from $192,500,000 in Q1 2024[148][149]. - Revenue from the Coffee & Tea segment was $120.7 million for the three months ended March 31, 2025, compared to $118.8 million in 2024, reflecting a growth of 1.5%[62]. - The company reported $49.6 million in revenues from commodity contracts under ASC 815 for the three months ended March 31, 2025, up from $35.0 million in 2024, marking an increase of approximately 41.3%[55]. Expenses and Losses - Gross profit decreased to $29,073,000 in Q1 2025 from $37,274,000 in Q1 2024, representing a decline of 22.0%[10]. - The company reported a loss from operations of $13,069,000 for Q1 2025, compared to a loss of $10,132,000 in Q1 2024, reflecting a worsening operational performance[10]. - Interest expense rose to $12,599,000 in Q1 2025 from $7,579,000 in Q1 2024, an increase of 66.5%[10]. - Employee-related costs for the Beverage Solutions segment were $11,806,000 in Q1 2025, slightly down from $11,923,000 in Q1 2024, indicating a focus on managing operational expenses[150][152]. Cash and Liquidity - Cash and cash equivalents at the end of the period increased to $44,888,000 as of March 31, 2025, compared to $13,776,000 at the end of March 31, 2024[14]. - The company incurred net cash outflows from operating activities of $22.1 million during the three months ended March 31, 2025[21]. - The company had $147.5 million of outstanding borrowings under the Revolving Credit Facility at March 31, 2025, with a weighted average interest rate of 8.3%[78]. Assets and Liabilities - Total assets as of March 31, 2025, were reported at $1,138,704,000, an increase from $983,256,000 at the end of Q1 2024[148][149]. - Total inventories increased to $187.4 million as of March 31, 2025, from $163.3 million as of December 31, 2024, representing a growth of about 14.8%[63]. - The company’s property, plant, and equipment, net amounted to $476.3 million as of March 31, 2025, compared to $467.0 million as of December 31, 2024, indicating an increase of approximately 2.7%[64]. Debt and Financing - As of March 31, 2025, the total debt of the company was $483.431 million, an increase from $447.727 million as of December 31, 2024, representing an increase of approximately 8.5%[75]. - The company entered into an Incremental Assumption Agreement that increased available borrowings under its Credit Agreement by $25.0 million[22]. - The company incurred a total of $1.4 million in financing fees in connection with the Fourth Amendment to the Credit Agreement[84]. Derivatives and Hedging - The net realized gains on coffee derivatives for the three months ended March 31, 2025, were $10.2 million, compared to $0.1 million for the same period in 2024[121][126]. - The total derivative assets as of March 31, 2025, amounted to $26.573 million, an increase from $19.746 million as of December 31, 2024[124]. - The fair value of derivative assets designated as cash flow hedging instruments was $4.978 million as of March 31, 2025, compared to $4.043 million as of December 31, 2024[124]. Other Significant Events - The company entered into a joint venture with ETC Holdings SA on April 1, 2025, to combine Rwandan export operations, allowing for improved profitability and operational scaling[160]. - The company recognized approximately $4.7 million of one-time employee severance costs during the year ended December 31, 2024[36]. - The company recognized $1.5 million of net unrealized losses on green coffee inventory for the three months ended March 31, 2025[28].