What does Westrock Coffee do and what are its main business segments?

What is Westrock Coffee's latest dividend and current dividend yield?

What is the market's earnings forecast for Westrock Coffee next quarter?

Did Westrock Coffee beat or miss consensus estimates last quarter?

What is Westrock Coffee's gross profit margin?

What guidance did Westrock Coffee's management provide for the next earnings period?

What is the revenue and EPS growth rate for Westrock Coffee year over year?

What were the key takeaways from Westrock Coffee's earnings call?

- **Record Q3 Growth**: $26.2M combined EBITDA (14% QoQ, 84% YoY), on track for $60-65M full-year target.
- **New Product Expansion**: Ultra-filtered milk line with 2-4 year growth potential, $30M capital raise to support elevated coffee costs.
- **Operational Momentum**: 80% Conway plant capacity utilization, second can line online Q1 2026.
- **Financial Resilience**: 125% YoY EBITDA growth to $23.2M, $82M liquidity post-capital raise.
- **Key Risks**: Single-serve customer M&A uncertainty, 50% Brazil coffee tariffs, 4.5x leverage ratio.

**【CEO Opening Remarks】**
- Reported record-breaking Q3 results with 14% quarter-over-quarter and 84% year-over-year growth in combined Beverage Solutions and SS&T Adjusted EBITDA ($26.2M). Full-year guidance of $60-65M remains on track.
- Launched new ultra-filtered, high-protein milk-based product line, with commercial production expected to begin in Q1 2026. New can line installation complete, targeting 2-4 year growth parity with existing RTD coffee business.
- Achieved 80% of planned capacity utilization in Conway plant, with second can line set for Q1 2026 commercial production.
- Secured $30M capital infusion from core shareholders to address working capital needs from elevated coffee prices and tariffs.

**【CFO Financial Commentary】**
- Consolidated net loss of $19.1M due to Conway plant scale-up costs, but Adjusted EBITDA rose 125% YoY to $23.2M.
- Beverage Solutions Segment: 60% YoY net sales growth ($20.4M EBITDA) driven by 85% single-serve cup volume increase and 4% core roast & ground growth.
- SS&T Segment: 62% YoY net sales growth ($5.8M EBITDA) from volume, margin capture, and higher coffee prices.
- Completed $18M Q3 CapEx, with $15M remaining for Conway build-out. Total liquidity now $82M post-$30M convertible note issuance.
- 2025 guidance unchanged: $60-65M Consolidated EBITDA, 4.5x secured net leverage ratio (vs. 4.0x prior guidance). 2026 outlook cautious due to single-serve customer M&A uncertainty.

**【Q&A Highlights】**
- **Production Progress**: Main can line at 80-125% expected volume, glass line entering commercial production in December. Second can line on track for Q1 2026.
- **New Product Risk**: $5-6M incremental capital needed for ultra-filtered milk line, but no customer commitments yet.
- **Coffee Pricing Mitigation**: 60% Brazil-sourced coffee with 50% tariffs. Capital raise and covenant amendment provide liquidity buffer.
- **Customer Risk**: Key single-serve customer in M&A; worst-case scenario assumes full volume loss but confident in replacing with existing/new customers.
- **Free Cash Flow Outlook**: Conway plant to be EBITDA-positive by mid-2026, enabling debt reduction and growth investments.

Westrock Coffee Company (WEST) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

WEST

WEST fundamentals

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