Westrock Coffee Company (WEST)

Shares of Westrock Coffee Company (WEST) dropped by 11.59% from $8.415 to $7.44 in the trading on Friday, Novemeber 10, 2023. The reason why WEST down is due to lower-than-expected Q3 results and lower FY2023 guidance

• Q3 results: Westrock Coffee reported Q3 2023 consolidated net sales of $219.6 million, down by 4.6% from the same period in 2022. The consolidated gross profit for Q3 2023 was $35.1 million, impacted by charges and losses, compared to $41.1 million in Q3 2022. Despite these challenges, the company achieved a net income of $16.6 million in Q3 2023, a significant improvement from a net loss of $13.0 million in Q3 2022. This net income included various expenses and gains, including acquisition, restructuring, integration expenses, and non-cash gains from the change in fair value of warrant liabilities. Adjusted EBITDA for Q3 2023 was $11.6 million, down $6.3 million from Q3 2022. The Beverage Solutions segment contributed $176.8 million in net sales and $9.9 million in Adjusted EBITDA for Q3 2023, while the SS&T segment had $42.8 million in net sales and $1.7 million in Adjusted EBITDA, both lower than Q3 2022.
• 2023 Outlook: Westrock Coffee revised its outlook for 2023, expecting Adjusted EBITDA to fall below its previously issued guidance range, which indicated flat to a 10% increase over 2022. Further details on the outlook were to be provided during the third-quarter conference call.