Westrock Coffee Q2 2025 Earnings Report

Westrock Coffee EPS Results

• Actual EPS: -$0.12
• Consensus EPS: -$0.14
• Beat/Miss: Beat by +$0.02
• One Year Ago EPS: N/A

Westrock Coffee Revenue Results

• Actual Revenue: $280.86 million
• Expected Revenue: $238.34 million
• Beat/Miss: Beat by +$42.52 million
• YoY Revenue Growth: N/A

Westrock Coffee Announcement Details

• Quarter: Q2 2025
• Date: 8/7/2025
• Time: After Market Closes
• Conference Call Date: Thursday, August 7, 2025
• Conference Call Time: 4:30PM ET

Westrock Coffee (NASDAQ:WEST) is a global integrated coffee roaster and manufacturer that delivers end-to-end solutions across the coffee and tea supply chain. The company sources, roasts, blends, packages and distributes a diverse range of products, including hot and cold brew coffee, single-serve pods, instant and soluble coffee, tea, and specialty coffee extracts. Serving retail, convenience, foodservice and industrial customers, Westrock Coffee offers both private-label and co-packed branded products to meet the needs of supermarkets, quick-service restaurants, office coffee services and other channels.

Since its founding in 2008, Westrock Coffee has grown through a combination of organic expansion and strategic acquisitions to establish manufacturing facilities across North America, Latin America and Europe. The company’s global sourcing network enables it to procure high-quality Arabica and Robusta beans from key producing regions, while robust quality-control processes and traceability systems support consistent taste, safety and compliance with regional standards. This geographically diversified footprint allows Westrock Coffee to tailor its offerings to local consumer preferences and regulatory requirements.

In December 2021, Westrock Coffee completed its initial public offering on the Nasdaq Stock Market under the ticker symbol “WEST,” transitioning from a privately held roaster to a publicly traded company. The listing has provided the firm with additional capital to invest in production capacity, expand its premium and specialty coffee lines, and pursue further acquisitions that complement its existing platform. As a public company, Westrock Coffee continues to prioritize operational efficiency, sustainability initiatives and innovation in product development to drive long-term growth.

The company’s executive leadership team is headed by Chairman and Chief Executive Officer Thomas G. Sandefur, whose background in consumer packaged goods and agribusiness guides Westrock Coffee’s strategic direction. Under this leadership, the company remains focused on strengthening its global supply chain, enhancing customer service capabilities and delivering quality coffee and tea solutions to partners and consumers worldwide.

Westrock Coffee Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: WestRock delivered record Q2 results with combined segment adjusted EBITDA of $23 million, up 100% sequentially and 70% year-over-year, bringing H1 adjusted EBITDA to $34.5 million at the high end of guidance.
• Positive Sentiment: The Conway Extract & RTD facility saw sales jump fivefold in Q2 and is on track for another fourfold increase in Q3, overcoming initial startup delays and higher-than-planned costs to approach budgeted unit economics.
• Positive Sentiment: New Conway single-serve cup operations ramped production from 3% to 25% of total cups in three months, driving a 50% increase in monthly output and setting the stage for multiple customer on-boardings.
• Negative Sentiment: The U.S. 50% tariff on Brazilian green coffee imports is passed through to customers but elevates inventory valuation and places short-term pressure on working capital and liquidity.
• Positive Sentiment: Consolidated net sales rose 34.8% year-over-year, adjusted EBITDA reached $15.3 million despite $7.6 million in scale-up costs, and the company ended the quarter with $72 million in cash and full access to a $200 million revolver.

Presentation

[Operator]

Hello, and welcome to the WestRock Coffee Company's second quarter twenty twenty five earnings conference call. My name is Therese, and I'll be coordinating your call today. Following prepared remarks, we will open the call to your questions with instructions to be given at that time. I'll now hand the call over to Robert Munger with WestRock Coffee.

[Robert Mounger, VP - Corporate Development (M&A) & Head - Investor Relations at Westrock Coffee Company]

Thank you, and welcome to WestRock Coffee Company's second quarter twenty twenty five earnings conference call. Today's call is being recorded. With us are Mr. Scott Ford, Co Founder and Chief Executive Officer and Mr. Chris Pledger, Chief Financial Officer.

[Robert Mounger, VP - Corporate Development (M&A) & Head - Investor Relations at Westrock Coffee Company]

By now, everyone should have access to the company's second quarter earnings release issued earlier today. This information is available in the Investor Relations section of WestRock Company Company's website at investors.westrockcoffee.com. Certain comments made on this call include forward looking statements, which are subject to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward looking statements are based on management's current expectations and beliefs concerning future events and are subject to several risks and uncertainties that could cause actual results to differ materially from those described in these forward looking statements. Please refer to today's press release and other filings with the SEC for a more detailed discussion of the risk factors that could cause actual results to differ materially from those expressed or implied in any forward looking statements made today.

[Robert Mounger, VP - Corporate Development (M&A) & Head - Investor Relations at Westrock Coffee Company]

Also, discussions during the call will use some non GAAP financial measures as we describe business performance. The SEC filings as well as the earnings press release provide reconciliations of these non GAAP financial measures to the most directly comparable GAAP measures. And with that, it is my pleasure to turn the call over to Scott Ford, our Co Founder and Chief Executive Officer.

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

Thank you, Robert, and good afternoon, everyone. Thanks for joining us. We delivered record breaking second quarter results driven by strong customer demand, improved margin performance and successful execution across our integrated platform this quarter. These results reflect the strength of our model and the strategic investments we've made in growth. Our progress towards our goal of becoming the premier integrated strategic supplier to the preeminent coffee, tea and energy beverage brands globally has resulted in record production, record deliveries and record profits for our business this quarter.

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

We ended the second quarter with the combination of our Beverage Solutions and SS and T adjusted EBITDA of $23,000,000 up 100% over the first quarter of this year and up approximately 70% over the same quarter last year. These results bring our first half of the year combined segment adjusted EBITDA to $34,500,000 up approximately 40% over the prior year, at the high end of our guidance range. As we explained on our first quarter call, the beginning of commercial operations at the new single serve cup plant along with production ramp up at the Extract and RTD plant in Conway, Arkansas, combined with cost controls across our entire business and process, data intelligence and risk mitigation insights brought about through our now two year old relationship with Palantir were the key drivers of this quarter's earnings beat. To provide you a bit of context, but without getting into competitive sensitive details, our new extract and RTD facility saw a fivefold increase in sales from our main production line in the quarter and is on track for the third quarter to be up another fourfold. It has not been without its challenges.

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

We got off to a much slower volume start than we originally anticipated. Our startup costs exceeded our plan, and it was as difficult as our most ardent critics intimated. However, our primary liquid product volumes are now approaching planned levels, and we're closing in on our budgeted unit economics. The Conway plant team members continue to persevere with an unprecedented grit and determination. Our knowledge base grows daily, and we have line of sight to being fully caught up with all of our customers over the next sixty to ninety days.

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

I am so proud of this team. They are now just weeks away from pulling off what many said was impossible. To lesser fanfare, but at the same time, as the Conway RTD facility went into commercial production, we also launched our second single serve cup manufacturing facility in another part of the Conway complex. The startup of this plant has continued to go seamlessly as we moved from 3% of our total manufactured cups being made in this new plant to 25% in just three months. Our combined single serve plants are now producing 50% more cups monthly than we were just a few short months ago, and we have a number of new customers that we will be onboarding into this new facility over the next year.

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

As a reminder, together these Conway facilities encompass over 1,000,000 square feet that can produce and distribute hundreds of millions of RTD cans, glass bottles and multi serve bottles, along with ultimately billions of single serve cups each year. We remain convinced that consumer driven shifts taking place in the coffee and related beverage market are going to create immense return opportunities for a few companies and while stagnating many others. We also believe that our customer base and our vendor partners position us as one of the very few companies globally who have the technological expertise and breadth of product offerings to deliver on this type of industry altering strategic plan. By becoming the lead innovation and development partner, dependable and sustainable sourcing resource and low cost processing and packaging outsourcer for the world's leading beverage brands, we enable them to capitalize on their brand equity positions through the transition of their product portfolio in step with the movements of their end consumers. These results from the quarter demonstrate examples of growth brought about from our delivery as the leading integrated platform in the category.

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

Progress then in turn enhances the value of our services to our customers, contributes to the growth of the careers of our teammates, manifests our pricing power on the ground daily for the benefit of smallholder farmers in the developing world and rewards our shareholders. These are important things, and they continue to be worthy of all of our greatest efforts. Our combined results, while different in mix versus our original thoughts, blended together in such a way this quarter that we were able to generate record results and are now again able to affirm our previous guidance for the back half and for the full year 2025. With that good news, I'll turn the call over to Chris Pledger, our CFO, and rejoin you in a few moments for questions.

[Chris Pledger, CFO at Westrock Coffee Company]

Thank you, Scott, and good afternoon, everyone. As Scott mentioned, we delivered a strong second quarter, highlighted by year over year growth in our core roasting ground single serve and flavors extracts and ingredients platforms, as well as disciplined supply chain and operating expense management. Our sustainable sourcing and traceability segment also posted another impressive quarter. On a consolidated basis, net sales increased by 34.8% compared to the 2024. Although we reported a net loss of $21,600,000 this reflects our planned investment in the Conway Extract and RTD facility.

[Chris Pledger, CFO at Westrock Coffee Company]

Our consolidated adjusted EBITDA was $15,300,000 which includes $7,600,000 of scale up operating costs related to the Conway facility. For comparison, in the 2024, consolidated adjusted EBITDA was $12,400,000 and included $1,200,000 of Conway related scale up costs. We expect our scale up costs to moderate later this year as the Conway production volumes continue to ramp. In our Beverage Solutions segment, net sales increased 27.9% year over year and segment adjusted EBITDA grew 48.5 to $19,700,000 in the second quarter. This growth was driven by 13.7% volume increase in our core roasting ground coffee, a 21.1% volume increase in single serve cups, and a 14% increase in sales of flavors, extracts, ingredients supported by our continued ramp up of production in the Conway facility.

[Chris Pledger, CFO at Westrock Coffee Company]

Commodity coffee price increases, which we pass on to our customers, also contributed to top line growth. Our SS and T segment continues to perform exceptionally well. Net sales grew 60% over the 2024, driven by volume growth, margin capture and higher coffee prices. Segment adjusted EBITDA was $3,300,000 up from $400,000 in the prior year quarter. Not only do these results reflect the scalability and resilience of our SS and T segment, but they also reinforce our leadership and sourcing transparency, which drives long term commercial value for our partners and for our investors.

[Chris Pledger, CFO at Westrock Coffee Company]

Capital expenditures in the quarter totaled approximately 20,000,000 primarily related to the Conway extract and RTD facility. We remain on track to complete the remaining CapEx for Conway by the end of fiscal twenty twenty five. As of quarter end, we had approximately $72,000,000 in unrestricted cash and available liquidity under our $200,000,000 revolving credit facility. Our leverage metrics remain within expectations and in full compliance with the covenants under our credit agreement. Turning to coffee commodity prices and tariffs.

[Chris Pledger, CFO at Westrock Coffee Company]

We've begun to see some relief from the historically high green coffee prices I spoke about on our last earnings call, which should provide a working capital benefit in early twenty twenty six. However, tariffs remain a significant focus across the industry and will likely reflect a new normal for our operating environment going forward. Earlier this month, The US implemented a 50% tariff on imports from Brazil, the world's largest Arabica coffee producer and the single largest source of coffee imports into The United States. As with previously announced tariffs, these added costs are ultimately passed through to our customers. However, because we carry green coffee inventory during the manufacturing process, the tariffs impact the value of our inventory and as a result, place additional pressure on our working capital and liquidity in the short term.

[Chris Pledger, CFO at Westrock Coffee Company]

While this dynamic adds some incremental strain, we have several levers available to manage liquidity should the need arise and continue to monitor the situation closely. Turning to our outlook. As Scott mentioned, we had a very strong first half of the year and are pleased to report that our twenty three point six million dollars of consolidated adjusted EBITDA for the 2025 put us at the top end of our guidance range. Beverage Solutions segment adjusted EBITDA, which came in at $29,300,000 was also at the top end of our guidance range. And our SS and T segment adjusted EBITDA of $5,200,000 significantly exceeded the high end of our first half twenty twenty five guidance.

[Chris Pledger, CFO at Westrock Coffee Company]

In addition, our Beverage Solutions secured net leverage ratio at 06/30/2025 was 4.75 times, nearly a full turn better than the guidance we provided of 5.7 times. While we expect this momentum to carry into the second half of the year, we do recognize that the broader macroeconomic and consumer environment could present some headwinds. While we're not currently seeing material impacts with our customers, elevated tariffs, persistent inflation, and any softening in consumer confidence could affect traffic and purchasing patterns in the restaurant convenience, retail and consumer packaged good channels we serve. If our customers see reduced consumer demand, it may in turn impact their ordering patterns with us. But despite these uncertainties, demand for our products remains strong across all customer segments, and we continue to benefit from the strength and diversification of our customer base.

[Chris Pledger, CFO at Westrock Coffee Company]

At this point, we see no reason to make any changes to our forward guidance. With that, I'd be happy to open the line for questions.

[Operator]

Thank you. To ask a question during the session, you will need to press 11 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press 11 again. Please stand by while we compile the Q and A roster.

[Operator]

Our first question today comes from Eric DeLorean from Craig Hallum Capital Group. Your line is open.

[Eric Des Lauriers, Senior Research Analyst at Craig-Hallum Capital Group LLC]

Great. Thanks for taking my questions and congrats on the strong results here. Nice to see EBITDA coming in at the top end of the range. First one, just kind of double clicking on a comment from Scott earlier, how results were a bit different in mix compared to your initial results. Not sure if I missed something there, but can you just expand on that comment? Thank you.

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

Yeah, sure. The mix was a little bit better in some of the categories that we track our profitability, both on a revenue side, volume side and on a cost side. And the cost side I specifically called out. We were slower getting Conway started on the volume throughput in the quarter than we had anticipated, But we made up for that in a number of other areas in our core base business. I tried to call those things out specifically in the paragraph, but that is what I was talking about.

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

On the balance, we've got caught up with where we thought our volumes would be in Conway now and the back part of the year is actually looking to be pretty close to original plan. But what I did call out in the paragraph, the work we started doing with Palantir two years ago continues to outrun even our optimistic view of what they're able to help us do. And I'm not normally in the advertising business, but I called it out because it was a significant contributor to our profitability. Really, it's going to be a significant contributor for the whole back nine months of the year.

[Eric Des Lauriers, Senior Research Analyst at Craig-Hallum Capital Group LLC]

Thank you. That's very helpful color. Maybe just worth expanding on that. Could you just kind of give us a bit more of a background on this relationship with Palantir? How are you using their products?

[Eric Des Lauriers, Senior Research Analyst at Craig-Hallum Capital Group LLC]

How is it helping improve your profitability? That'd be helpful. Thanks.

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

Sure. We sit at the nexus of a number of interesting data feeds as we serve the world's largest or certainly The US largest consumers of coffee, where our balance sheet is the one that's at risk to carry the positions for them. So we get forecasts from them. We have futures that we have to carry. We carry a series of spread trades around those futures to maintain the good risk management.

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

And frankly, the team that works with Palantir and the data that we've been able to to glean from all of that data coming together in one place has simply been more powerful than we would have guessed. We are now deploying them through our manufacturing facilities and are actually more optimistic about what they'll bring there over time than we were in the trading and physical logistics business.

[Eric Des Lauriers, Senior Research Analyst at Craig-Hallum Capital Group LLC]

That's very encouraging. I appreciate the color there. Then just last one for me here. On the previous call, you mentioned the second Conway RTD can line. That should come online in Q3.

[Eric Des Lauriers, Senior Research Analyst at Craig-Hallum Capital Group LLC]

I'm not sure if this is sort of mixed up in some of the maybe push outs of the expected ramp, but can you just kind of comment on where that second RTD can line is in terms of time and compare that to your initial expectations? Thanks.

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

Yeah. No real update there. It should be installed the October in production early November.

[Eric Des Lauriers, Senior Research Analyst at Craig-Hallum Capital Group LLC]

Alrighty. Thank you for taking my questions. Appreciate it.

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

You bet. Thank you.

[Operator]

Thank you. Our next question is from Bill Chappell from Truist Securities. Your line is open.

[Bill Chappell, Managing Director at Truist Securities]

Thanks. Good afternoon.

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

Good afternoon.

[Bill Chappell, Managing Director at Truist Securities]

Just a follow-up or initial question, just kind of a thought of you should have pretty high visibility, I imagine, for production over the next six to nine months. Is that would you say it's in the high 90s, 100? And kind of what's the maybe the what's the room for upside from there? I mean, in terms of new orders coming in, can you take it? Or are you kind of full out as we move into the especially the fourth quarter?

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

Hard to say. I think in fairness, I think we've got pretty good line of sight in terms of what we expect from customers that are in and running now. We have some other customers that are scheduled to come on after the second can line comes in. Exactly whether that falls in November, December, or January, things like that, hard for me to hard for me to guess at this point in time. I think the other major thing that's going on there is when exactly we start up the glass line.

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

So the trials on that have gone exceedingly well. We are concluding all of those where we have to pre make it and make it again, make it again and get all of that checked off. We're in the final stages of that. That could start in the fourth quarter. It could start earlier than later.

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

So those things could have, a few million dollars, if you will, of EBITDA impact plus or minus from where we are. I think that's all caught in our guidance. I think Pledger has his line of sight on all of the pluses and minuses of that, which, bring us out, you know, kind of just I think we're good where we sit in our previous guidance with some of those being positives and negatives normally in the full course of time.

[Chris Pledger, CFO at Westrock Coffee Company]

Yeah, I think the good there is from a volume perspective, customer demand continues to be really strong. And so the volume that we have, the volume that we've sold continues, the demand there continues to be strong. There's capacity not only in single serve roasting ground, but also in the Conway product sets that open up as we continue to add the second can line on the multi serve bottle line. So there's opportunities to grow, there's customer demand for those and then the demand for what we've sold continues to be where we expected it.

[Bill Chappell, Managing Director at Truist Securities]

Got it. And then on the single serve, just a new facility, how about the visibility there? Have you started to win new business or recently won meaningful new business where you expect to fill that pretty quickly? Or just help me understand kind of the flow of that business too.

[Chris Pledger, CFO at Westrock Coffee Company]

Yeah. Think the whole catalyst for it was winning new business. I mean, we outgrown what we our original or legacy facility, wanted to create redundancy in the supply chain for some of the big customers that we provide single serve cut volume for and had one new business that was a catalyst for opening the second facility. There's still capacity for us to be able to expand there, which we're excited about. And we've got a good pipeline of customers that we're working with about coming into it.

[Bill Chappell, Managing Director at Truist Securities]

Great. Thank you.

[Operator]

Thank you.

[Chris Pledger, CFO at Westrock Coffee Company]

Thanks, Bill.

[Operator]

Our next question is from with TA. Your line is open.

[Sarang Vora, Equity Research at Telsey Advisory Group]

Great. Thank you for taking my question. Great quarter. Good to see new facilities up and running. My question is on single serve.

[Sarang Vora, Equity Research at Telsey Advisory Group]

Already have one facility in Arkansas. You opened another one. Can you help us frame how your market share is today and with the full production at the new facility? I know it just started. Where do you think it ends up in general, trying to understand how big your scale is getting in the single serve? Thank you.

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

Sure. I think as Chris mentioned, this is Scott. As Chris mentioned, the first plant as it's laid out was essentially full. The second one we built in the front 25% of the new distribution center that was built to serve the Conway beverage plant. So we built it from day one set up to run another single serve facility in that portion of the building.

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

So it is reasonably modular. We could turn it on if you if you had billions of cups of year of demand and you wanted to contract for that, we could take the space and fill that out. Right now, I would say that we've filled out maybe 2520% of that space with machines, and the rest of it is actually, you know, available for part of the distribution center. So it's kind of modular. We will add machines and take space from one service into the next as we go.

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

And at this point, we've had very nice wins in the traditional retail CPG space. We continue to have great conversations in the space that we grew up in, which is really around the traditional private label space for retailers. We've got a lot of interesting projects going on that front, and we continue to chip away at it. The industry structure everybody knows Keurig is the 800 pound gorilla. The research reports that I see say they have well over 80% market share.

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

There used to be 20 of us that competed in the other 20. I think there's maybe three or four that are left. It's been a good business for us, but it is a scale business and it's very difficult to run kind of in a one off with just one or two machines. You'll recall that we started the original WestRock we started with one machine. We've got dozens now, but it's it's an issue that it is a scale game when you have a very tough, very sizable player that started the industry and is still an excellent manufacturer and very aggressive competitor.

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

And we live under, you know, an industry structure umbrella that reflects that.

[Sarang Vora, Equity Research at Telsey Advisory Group]

Great. Thank you. And, you know, I have a quick question on the tariffs. You know, I know you sold from multiple countries around the world, but, Brazil is one of the big markets, high tariff over there. Are you able to change your sourcing from one market to other market more efficiently?

[Sarang Vora, Equity Research at Telsey Advisory Group]

Or these contracts are long term and you kind of have fixed liability to buy products or something? Just curious to know if there is an easy swap when tariffs change between countries.

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

Yeah, it's a great question. It's it's reasonably detailed. It depends. There are some contracts we can say, okay. Well, we can get a reasonable profile of a bean from Colombia or Honduras or Rwanda or Uganda that can substitute for a 50% tariff, and all of a sudden logistics out of East Africa are back in play.

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

Those coffees can be competitive. We have other situations where it's very difficult to change them for customer profile or contract reasons, and so it will be a total mixed bag. There is no flip of the switch of which that just says, okay. We're just gonna avoid 50% tariffs when they are the largest producer of coffee in the country in the world, and most of the most of the coffee that freely trades in the world, net, comes out of Brazil. So it matters.

[Sarang Vora, Equity Research at Telsey Advisory Group]

That's helpful. Thank you so much, and good luck with the production ramp.

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

Thanks.

[Chris Pledger, CFO at Westrock Coffee Company]

Thank you.

[Operator]

Thank you. Our next question comes from Todd Brooks with The Benchmark Company. Your line is open.

[Todd Brooks, Equity Research Analyst - Restaurants & Packaged Foods at The Benchmark Company LLC]

Hey, thanks. And I'll add my congratulations as well for just that next step up in the momentum of the business here. Great to see. Scott, I want to ask a question to both of you. We think production footprint that you're building in Conway between single serve facilities, between FE and I facility, and I know a lot of this, the shelves are built, the plumbing's there, it's incremental lines that you're putting in.

[Todd Brooks, Equity Research Analyst - Restaurants & Packaged Foods at The Benchmark Company LLC]

So we need to frame up kind of beverage solutions revenue that could be supported out of the existing footprint as we get three to five years out.

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

Revenue. That's a revenue question. I only work in EBITDA pledger. He wants to know about revenue.

[Chris Pledger, CFO at Westrock Coffee Company]

I think I mean, that's kind of the way. Revenue is hard just simply because of the price of how the coffee cost impact the business. But I think there is an opportunity to significantly grow revenue and grow EBITDA with the existing footprint that we have. I mean, we will continue just with the equipment that we have in place now and the new when the glass line comes on, when the second can line comes on, just with those assets, we will have the opportunity to significantly grow and will continue to grow both on a revenue basis and on an EBITDA basis really through next year off of those assets being deployed. We've got additional capacity in the Conway, the single serve facility that we have in Conway that we can sell without having to deploy more CapEx.

[Chris Pledger, CFO at Westrock Coffee Company]

And so there's a great opportunity for us over the next twelve to eighteen months to really grow and monetize the assets that we've deployed in Conway over the last two or three years. And then there's space within each of those facilities that if there are bespoke opportunities to add a line here or there, we'll have the ability to do that and take advantage of it. And I guess that's the way I think about it.

[Todd Brooks, Equity Research Analyst - Restaurants & Packaged Foods at The Benchmark Company LLC]

Yeah. And I asked the question poorly. I should have asked from the EBITDA line. Apologize. But I'm just

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

It's the same question pleasure just answered, but I will convert it for you. And you can look at the guidance that we laid out for the year. And then you look at what we expect that to ramp up next year, and we are working internally. We are working backwards over the next three years of driving EBITDA to $200,000,000. So we're gonna we plan to go from last year where we did 60 to 200 in about three or four years, and we think we have eyes on everything we have to do, and we have every relationship.

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

I would say 85% of all the relationships we have to have from a customer and product perspective to deliver that. That's what we're working backwards from. And frankly, that is the progress on that. We report to our board every quarter at the beginning of every meeting because that's all they want to talk about too.

[Todd Brooks, Equity Research Analyst - Restaurants & Packaged Foods at The Benchmark Company LLC]

So you get a good answer when you ask the right question. Thank you for reminding me to focus on EBITDA here.

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

It's like AI. You have to it's how you ask the question.

[Todd Brooks, Equity Research Analyst - Restaurants & Packaged Foods at The Benchmark Company LLC]

The other question I want to ask is thinking about the different business lines. Just Scott, can you update us on cross selling momentum? And does that continue to accelerate? And are you surprised by how quickly customers are buying across the three lines of business in Beverage Solutions or maybe layering in SS and T from a green standpoint?

[Todd Brooks, Equity Research Analyst - Restaurants & Packaged Foods at The Benchmark Company LLC]

Is it just is that is that an accelerating opportunity relative to your expectation for WestRock?

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

Yeah. You know, that's that is that is a thoughtful question that, not to not to wax poetically, but I think there really are three categories. And there are there are the mega brands that serve products across the whole category or only serve part of the category like roast and ground, and they want to be in RTD as an example. Those very large brands that have very large product development, commercialization staffs, research, data analytics, they have been much more aggressive than I would have guessed. And I think that's the phrasing of your question reflects some of the surprise we've expressed in the past about how well our cross selling went.

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

There's another category, I think, of customers largely in the in the c store and restaurant space that are realizing they they are gonna have to get back on trend with some of their beverage offerings, and they are more in the exploratory and one off kind of pace. And then we've got a large number of customers in our traditional business that are single product buyers and and probably will be for, you know, a very, very long time. So it's a mix, but those top 20 accounts are driving all of the cross product enhancements that our business is really benefiting from, and they're coming from that top 20 or 30 customers.

[Todd Brooks, Equity Research Analyst - Restaurants & Packaged Foods at The Benchmark Company LLC]

Okay. That's really helpful. Thank you, and congrats again.

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

Thank you.

[Chris Pledger, CFO at Westrock Coffee Company]

Thank you.

[Operator]

Thank you. This concludes the question and answer session. I would now like to turn it back to Scott Ford for closing remarks.

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

Well, thank you. Thanks all of you for hopping on. Thank you for those of you that follow us. We've not been the easiest story to follow and y'all have been great. You've been professional.

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

You've been thoughtful and we do appreciate the work that you're doing. We're super excited about where we are. We have a lot to do. Not every quarter lines up where it all comes in to your liking and you have to battle through some and I'm sure we have quarters ahead of us where we'll continue to have to battle through. But as my old director at Altel told me Eamon Mahoney, a quarter like this and I started making a list of all the things we hadn't done yet, Eamon looked at me and he said, you know, if you're not happy when you can be, you never will be.

[Scott Ford, Co-Founder, Director & CEO at Westrock Coffee Company]

So we're going to pause this evening and be happy, and then we're going to go back to work tomorrow and lay down a good set of numbers for the third and fourth quarter. Thank you for your time and your interest.

[Operator]

This does conclude the program. You may now disconnect.

Participants

Executives

• Robert Mounger, VP - Corporate Development (M&A) & Head - Investor Relations
• Scott Ford, Co-Founder, Director & CEO
• Chris Pledger, CFO

Analysts

• Eric Des Lauriers, Senior Research Analyst at Craig-Hallum Capital Group LLC
• Bill Chappell, Managing Director at Truist Securities
• Sarang Vora, Equity Research at Telsey Advisory Group
• Todd Brooks, Equity Research Analyst - Restaurants & Packaged Foods at The Benchmark Company LLC