Westrock Coffee Co (WEST) Q1 2025 Earnings Call Highlights: Navigating Growth Amid Challenges

GuruFocus News

Fri, May 9, 2025, 12:44 AM 3 min read

Release Date: May 08, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• Westrock Coffee Co (NASDAQ:WEST) reported a 3.3% summation successful adjusted EBITDA for the archetypal quarter, aligning with expectations.

• The institution reaffirmed its guidance for the archetypal fractional and afloat twelvemonth of 2025, projecting important growth.

• Successful commercialized motorboat of 2 caller manufacturing facilities successful Conway, Arkansas, enhancing accumulation capabilities.

• Strong measurement maturation successful the sustainable sourcing and traceability segment, with a 44% summation successful sales.

• The institution is experiencing precocious request for its single-serve products, starring to plans for further capableness expansion.

• Westrock Coffee Co (NASDAQ:WEST) reported a nett nonaccomplishment of $27.2 cardinal for the archetypal quarter.

• The institution faced $3.3 cardinal successful scale-up operating costs related to the caller Conway facilities.

• High greenish java prices and recently announced tariffs are expected to interaction costs and liquidity.

• The institution is intimately monitoring imaginable impacts of macroeconomic volatility connected user spending.

• Despite growth, the roasting and crushed java conception experienced a diminution successful adjusted EBITDA compared to the erstwhile year.

• Warning! GuruFocus has detected 6 Warning Signs with WEST.

Q: Can you supply details connected the accumulation ramp-up astatine the Conway installation and the timeline for the caller tin lines? A: Scott Ford, CEO: The archetypal ample tin enactment started this period and volition ramp up successful May and June. The 2nd tin enactment volition travel online successful the 3rd quarter, apt astir August oregon September. The solid enactment volition besides commencement successful the 3rd 4th and ramp up implicit 3 quarters. By the archetypal 4th of adjacent year, each 3 lines should beryllium afloat utilized. We person a 3rd tin enactment acceptable to instal if needed.

Q: How is the single-serve conception performing, and what are your expectations for the year? A: Scott Ford, CEO: We are seeing important traction successful the single-serve segment, with respective backstage statement and branded merchandise wins. We are winning successful the market, and our caller Conway installation is facilitating this growth. Chris Pledger, CFO: We expect a important measurement ramp starting successful the 2nd quarter, continuing done the year, driven by caller lawsuit wins and maturation with existing customers.

Q: What visibility bash you person into orders supporting EBITDA maturation successful the 2nd fractional of the year? A: Scott Ford, CEO: We are assured successful our quality to conscionable the merchandise measurement commitments from our customers. Demand is strong, and we person customers acceptable to instrumentality immoderate disposable accumulation slots, indicating robust bid visibility.