Westrock Coffee Company Reports Second Quarter 2025 Results and Reaffirms 2025 and 2026 Outlook

Core Insights - Westrock Coffee Company reported record quarterly segment performance, driven by the successful launch of a new single-serve cup plant and increased production at its extract and ready-to-drink facility in Conway, Arkansas [3][4] - The company reaffirmed its financial guidance for 2025 and 2026, indicating confidence in its operational strategy and market position [4] Financial Performance - Net sales for the second quarter reached $280.9 million, a 34.8% increase compared to the prior year [8] - Gross profit remained flat at $41.4 million, while the net loss widened to $21.6 million from $17.8 million in the previous year [8] - Consolidated Adjusted EBITDA was $15.3 million, which included $7.6 million in scale-up costs related to the Conway facility, compared to $12.4 million in the prior year [8][26] Segment Results - Beverage Solutions segment net sales increased by 27.9% to $208.8 million, with Segment Adjusted EBITDA rising by 48.5% to $19.7 million [8][21] - Sustainable Sourcing & Traceability segment net sales surged by 59.6% to $72.0 million, with Segment Adjusted EBITDA improving to $3.3 million from $0.4 million in the second quarter of 2024 [8][21] Cash Flow and Balance Sheet - Cash and cash equivalents increased to $43.96 million as of June 30, 2025, up from $26.15 million at the end of 2024 [12][19] - Total assets rose to $1.16 billion, compared to $1.10 billion at the end of 2024, reflecting growth in inventory and accounts receivable [12][19] Outlook - The company is focused on becoming a premier integrated supplier to leading coffee, tea, and energy beverage brands globally, with ongoing investments in production capabilities [3][4] - Westrock Coffee's secured net leverage ratio was reported at 4.75x, indicating the company's financial leverage in relation to its EBITDA [22][23]