NASDAQ$WEST

Westrock Coffee Company · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported a mix of positives and negatives, with a decline in volume demand for traditional roast and ground coffee impacting Adjusted EBITDA.

Westrock Coffee reported a net sales decrease of 4.6% to $219.6 million, with a net income of $16.6 million compared to a net loss in the previous year. The company's Adjusted EBITDA decreased by $6.3 million to $11.6 million. The company expects its 2023 outlook for Adjusted EBITDA to fall below its previously issued guidance range of flat to 10% over 2022.

  • Consolidated net sales decreased by 4.6% to $219.6 million.
  • Consolidated gross profit was $35.1 million, including out-of-period charges and non-cash mark-to-market losses.
  • Net income was $16.6 million, which included acquisition, restructuring and integration expenses, start-up costs, and non-cash gains from the change in fair value of warrant liabilities.
  • Adjusted EBITDA decreased to $11.6 million.

Headline financials

Total Revenue

$220M

Previous: $230M-4.6%
EPS (adj)

$0.15

Previous: -$0.41+136.6%
Consolidated Adjusted EBITDA

$11.6M

Previous: $17.9M-35.2%
Capital Expenditures

-$122M

Previous: -$23M-429.2%
Free Cash Flow

-$105M

Previous: -$36M-191.8%
Net Income

$16.6M

Previous: -$13M+227.9%
Operating Income

-$5.37M

Previous: $5.5M-197.7%
Gross Profit

$35.1M

Previous: $41.1M-14.8%
Cash & Equivalents

$44.4M

Previous: $91M-51.2%
Total Assets

$891M

Previous: $750M+18.8%
Stock-Based Comp

$2.44M

Previous: $705K+246.1%

Revenue & EPS history

Westrock Coffee · Revenue · Quarterly

$220M

Q3 2023-4.6%vs Q3 2022
Beat estimate in 4 of 14 quarters(29%)
ActualEstimate

Revenue by segment

Westrock Coffee · $177M total across 1 segment · Q3 2023

  • Beverage Solutions
    $177M+1.9%

Forward guidance

The Company expects its 2023 outlook for Adjusted EBITDA to fall below its previously issued guidance range of flat to 10% over 2022.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+1.5%

Avg return

Earnings day

+3.4%

Avg return

5 days after

+2.8%

Avg return

30 days after

45%

9 / 20 earnings

Positive

+18.4%

Q1 2025

Best reaction

-14.2%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.8%+42.2%+24.2%
Q4 2025-3.7%+11.9%+22.5%
Q3 2025-1.5%+0.0%+2.8%
Q1 2025+18.4%+20.2%+9.8%
Q4 2024-10.9%+5.8%-10.0%
Q3 2024-2.8%-4.7%-6.7%
Q2 2024-3.1%-4.4%-14.7%
Q1 2024-0.8%+1.5%-2.4%
Q4 2023+15.4%+6.1%+10.7%
Q3 2023-14.2%-8.3%+8.9%
Q2 2023-3.7%+0.0%-5.3%
Q1 2023-6.4%-8.2%-3.0%
Q2 2022+1.7%+1.6%+3.4%
Q4 2022-0.3%+5.7%+11.3%
Q3 2022+2.6%+1.4%+10.9%
Q3 2021+2.6%+1.4%+10.9%
Q4 2020+9.9%-2.1%-5.8%
Q1 2022+9.9%-2.1%-5.8%
Q4 2021+9.9%-2.1%-5.8%
Q2 2021+9.9%+2.3%-0.1%
Q1 2021

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