Financial Data and Key Metrics Changes - The company reported record-breaking second quarter results with adjusted EBITDA of $23 million, up 100% from the first quarter and approximately 70% year-over-year [6][12] - Consolidated net sales increased by 34.8% compared to 2024, although a net loss of $21.6 million was reported due to planned investments in the Conway facility [12][13] - Consolidated adjusted EBITDA was $15.3 million, which included $7.6 million of scale-up operating costs related to the Conway facility [13][15] Business Line Data and Key Metrics Changes - In the Beverage Solutions segment, net sales increased by 27.9% year-over-year, with adjusted EBITDA growing 48.5% to $19.7 million [13][14] - The SS and T segment saw net sales grow by 60% year-over-year, with adjusted EBITDA rising to $3.3 million from $400,000 in the prior year quarter [14] Market Data and Key Metrics Changes - The company experienced a 13.7% volume increase in core roasting ground coffee and a 21.1% increase in single-serve cups, contributing to overall sales growth [13][14] - Commodity coffee price increases were passed on to customers, contributing to top-line growth [14] Company Strategy and Development Direction - The company aims to become the premier integrated strategic supplier to leading coffee, tea, and energy beverage brands globally, focusing on innovation and sustainable sourcing [10][11] - The company is leveraging its relationship with Palantir for data intelligence and risk mitigation, which has significantly contributed to profitability [24][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged potential headwinds from elevated tariffs, persistent inflation, and softening consumer confidence, but noted strong demand across all customer segments [19][20] - The company remains on track to meet its guidance for the second half of the year, with no changes expected to forward guidance [20] Other Important Information - Capital expenditures for the quarter totaled approximately $20 million, primarily related to the Conway facility [15] - The company has approximately $72 million in unrestricted cash and liquidity under its revolving credit facility [15] Q&A Session Summary Question: Can you expand on the comment regarding results being different in mix? - Management noted that the mix was better in some profitability categories, with slower volume throughput at Conway being offset by improvements in core business areas [22][23] Question: Can you provide more background on the relationship with Palantir? - The company utilizes Palantir's data analytics to enhance risk management and profitability, with expectations for further improvements in manufacturing [25][26] Question: What is the status of the second RTD can line? - The second RTD can line is expected to be installed in October and in production by early November [28][29] Question: What is the visibility for production over the next six to nine months? - Management indicated good visibility on current customer orders, with potential for additional orders as new lines come online [34][35] Question: How is the market share in single serve coffee evolving? - The company is expanding its capacity and has secured new business, but faces competition from larger players like Keurig [47][48] Question: How does the company manage sourcing in light of tariffs? - The company can sometimes substitute sourcing from different countries, but it depends on contract terms and customer profiles [50][52]

Financial Data and Key Metrics Changes - In Q1 2025, consolidated net sales increased by 11.1% compared to Q1 2024, with a net loss of $27.2 million and consolidated adjusted EBITDA of $8.2 million, impacted by $3.3 million in Conway scale-up operating costs [12][13] - Adjusted EBITDA for the Beverage Solutions segment was $9.6 million, down from $10.8 million in Q1 2024, despite a 3.8% increase in net sales [13] - The Sustainable Sourcing and Traceability segment saw a 44% increase in sales, resulting in adjusted EBITDA of $1.9 million compared to $0.3 million in Q1 2024 [14] Business Line Data and Key Metrics Changes - The Beverage Solutions segment experienced a 3.8% increase in net sales, driven by a 7.6% increase in roasting ground coffee volumes and higher coffee commodity prices [13] - The Sustainable Sourcing and Traceability segment's sales growth was attributed to strong volume growth and margin capture, alongside higher coffee prices [14] Market Data and Key Metrics Changes - The company is contending with historically high green coffee prices and anticipates the impact of recently announced tariffs on coffee costs [16] - Despite political and macroeconomic headwinds affecting consumer spending, the company managed to grow roast and ground coffee volumes year over year [12] Company Strategy and Development Direction - The company aims to become the premier integrated strategic supplier to leading coffee, tea, and energy beverage brands globally, with a focus on innovation and sustainable sourcing [5][9] - The launch of new manufacturing facilities in Conway, Arkansas, is a significant driver of performance, with plans for further expansions to meet increasing demand [6][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving guidance for both the first half and full year of 2025, despite challenges in the operating environment [5][17] - The company is closely monitoring consumer confidence and spending, managing expenses proactively to mitigate potential impacts [16][17] Other Important Information - Capital expenditures in Q1 2025 totaled approximately $41 million, with over $30 million related to the Conway Extract and RTD facility [15] - The company has approximately $86 million in unrestricted cash and undrawn revolving credit commitments [15] Q&A Session Summary Question: Can you remind us about the full-scale production start at Conway? - The first large can line started this month, ramping up in May and June, with a second can line and a glass line expected to come online in the third quarter [22][23] Question: How are volumes ramping up in the single-serve side? - The company is winning in the market with several private label and branded product wins, leading to increased single-serve volumes [27][30] Question: What visibility do you have into orders supporting EBITDA growth in the back half of the year? - Management is confident in meeting customer volume commitments and demand is strong, with customers lining up for production slots [34] Question: Where do you stand on coffee demand and pricing? - The company is experiencing a share shift, with underlying unit demand improving despite high coffee prices and tariffs [53][56] Question: Can you expand on recent wins that are helping offset volume headwinds? - Recent wins include new customers in retail and traditional coffee categories, contributing to increased volume [61][62] Question: What capacity do you have to continue taking share? - The company has built infrastructure to add machines without needing additional space, allowing for significant capacity to take on new business [66]

Financial Data and Key Metrics Changes - In Q1 2025, WestRock Coffee Company reported a net sales increase of 11.1% compared to Q1 2024, with consolidated adjusted EBITDA of $8,200,000, impacted by $3,300,000 in Conway scale-up operating costs [12][13] - The net loss for the quarter was $27,200,000, while adjusted EBITDA for the previous year was $11,100,000 without the scale-up costs [12][13] - The combination of Beverage Solutions and SS and T segment adjusted EBITDA was $11,500,000, up 3.3% year-over-year [5][6] Business Line Data and Key Metrics Changes - Beverage Solutions segment net sales increased by 3.8%, with adjusted EBITDA of $9,600,000 compared to $10,800,000 in Q1 2024 [13] - The Sustainable Sourcing Traceability segment saw a 44% increase in sales, resulting in adjusted EBITDA of $1,900,000 compared to $300,000 in Q1 2024 [13] Market Data and Key Metrics Changes - The company faced historically high green coffee prices and anticipated the impact of recently announced tariffs on coffee costs [15][16] - Despite macroeconomic headwinds, the company managed to grow roast and ground coffee volumes year-over-year [12] Company Strategy and Development Direction - The company aims to become the premier integrated strategic supplier for coffee, tea, and energy beverage brands globally, with significant investments in new manufacturing facilities [5][9] - The launch of new manufacturing facilities in Conway, Arkansas, is expected to drive growth and enhance production capacity [6][10] - The company is focused on becoming a lead innovation partner and low-cost processing resource for leading beverage brands [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving guidance for the first half and full year of 2025, despite the challenging consumer environment [5][17] - The company is closely monitoring consumer confidence and spending, managing expenses proactively to mitigate potential impacts [16][17] Other Important Information - Capital expenditures in Q1 2025 were approximately $41,000,000, with over $30,000,000 related to the Conway facility [14] - The company has approximately $86,000,000 in unrestricted cash and undrawn credit commitments [14] Q&A Session Summary Question: Inquiry about full-scale production at Conway - Management confirmed that the first large can line started production in May, with a second can line and a glass line expected to ramp up in Q3 [20][22] Question: Volume ramp-up expectations for single serve products - Management indicated strong market traction and several private label wins, with expectations for significant volume growth in the second half of the year [25][30] Question: Visibility into orders supporting EBITDA growth - Management expressed high confidence in meeting customer demand and maintaining volume commitments [33] Question: Capacity for additional wins and market demand - Management stated that they have built infrastructure to support additional capacity without needing significant new investments [62] Question: Variability in guidance outlook - Management acknowledged potential variability due to scaling the new facility and consumer behavior in response to economic conditions [68][70]