The US coffee roaster and beverage group expects adjusted EBITDA to increase by at least $20m this year as new distribution and RTD facilities start to yield returns
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Westrock Coffee CEO Scott Ford | Photo credit: Westrock Coffee
Westrock Coffee has said the ‘painful but wholly necessary’ impact of production facility investments in 2023 significantly contributed to a $34.6m full-year net loss.
The Arkansas-based coffee roaster and beverage group said total sales fell 0.4% to $864.7m in the 12 months ending 31 December 2023 while adjusted EBITDA decreased 25% to $45.1m. The $34.6m loss was lower than the $55.5m loss reported in 2022.
In January 2024 Westrock Coffee completed construction on its new $70m 530,000sq ft distribution facility in Conway – and expects the first products from the site to be shipped in April 2024. The facility will provide warehouse and distribution support to Westrock’s roasting to RTD facility in the same city, which is currently being upgraded as part of a $300m five-year expansion project.
Westrock Coffee also significantly invested in its wider operations last year, including relocating to a new 50,000sq ft headquarters in Little Rock, Arkansas, and acquiring California-based coffee roaster Bixby Roasting Co.
On an earnings call, Westrock Coffee CEO Scott Ford said the investments are expected to contribute to adjusted EBITDA between $60m-$80m this year and position the business for further growth in 2025 and beyond.
“Last year was a significant transition year for Westrock and we now enter 2024 with a number of critical system migrations and capital equipment upgrades behind us,” Ford said.
Westrock Coffee began roasting coffee in Little Rock, Arkansas, in 2010 and has scaled its operations to source coffee, tea and extracts from 35 countries. The business has trading offices in the US, Rwanda, Ethiopia, Colombia, Peru, Germany and the UK, alongside manufacturing sites in the US and Malaysia.