SALT LAKE CITY--(BUSINESS WIRE)--Black Rifle Coffee Company (NYSE: BRCC), a Veteran-founded, mission-driven premium beverage company, will present today at the 28 Annual ICR Conference and has released preliminary and unaudited results for its fiscal year ended on December 31, 2025. For fiscal year 2025, the Company previously provided guidance of at least $395 million in revenue, gross margin of at least 35%, and Adjusted EBITDA of at least $20 million. Supporting Materials: Presentation materials are avai ...

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]

Core Insights - The company reported strong, broad-based performance across top-line, profitability, and cash flow in the first half of 2025, despite challenges from high green coffee prices [2][6] - The full-year outlook for 2025 has been raised due to strong performance in the first half and expectations for the second half [5][10] Financial Performance - Organic sales increased by 22.5%, driven by a 21.5% price increase and a 1.0% volume/mix change; reported sales rose by 19.8% [6][10] - Organic adjusted gross profit grew by 2.2%, while reported gross profit decreased by 8.7% [6][13] - Free cash flow amounted to EUR 565 million, with net leverage at 2.5x [6] - Underlying EPS was EUR 1.33, reflecting a 3.4% increase, while reported EPS was EUR 0.86 [6][13] Strategic Initiatives - The company is focused on simplifying its operating model and optimizing resource allocation, including divesting its tea business in Turkey and discontinuing the L'OR Barista machine rollout in the U.S. [3][11] - A new strategy titled "Reignite the Amazing" was unveiled, centered around three key brands: Peet's, L'OR, and Jacobs, aimed at sustainable value creation [4][5] - The company aims to deliver EUR 500 million in savings by the end of 2027, with over 50% of these savings reinvested into growth initiatives [11] Market Conditions - Green coffee prices were over 60% higher in the first half of 2025 compared to the same period last year, leading the company to implement various measures to mitigate cost inflation [9] - The company remains committed to supporting coffee farmers in sustainable practices while delivering high-quality coffee products to consumers [9]

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]