Overview

* Westrock Coffee ( WEST ) Q2 net sales rise 34.8% to $280.9 mln, beating estimates

* Net loss widens to $21.6 mln from $17.8 mln in prior year

* Company reaffirms 2025 and 2026 financial guidance

Outlook

* Company reaffirms 2025 and 2026 guidance for Consolidated Adjusted EBITDA

* Westrock Coffee ( WEST ) expects volume growth in core coffee business

* Westrock Coffee ( WEST ) reaffirms leverage ratio expectations

Result Drivers

* FACILITY LAUNCH - Launch of single-serve cup plant and production ramp-up at Conway facility drove record segment performance, per CEO Scott T. Ford

* SEGMENT GROWTH - Beverage Solutions segment sales increased by 27.9%, while Sustainable Sourcing & Traceability segment sales rose by 59.6%

* SCALE-UP COSTS - $7.6 mln in scale-up costs at Conway Facility impacted adjusted EBITDA

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat $280.86 $238.80

mln mln (4

Analysts

)

Q2 Net -$21.56

Income mln

Q2 Gross $41.40

Profit mln

Q2 $56.41

Operatin mln

g

Expenses

Q2 -$25.44

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the food processing peer group is "buy"

* Wall Street's median 12-month price target for Westrock Coffee Co ( WEST ) is $10.00, about 30.1% above its August 6 closing price of $6.99

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)