Executive Summary

Q4 2024 delivered moderate top-line growth and better gross profit, but losses widened as Conway scale-up costs and higher interest expense weighed; net sales rose 6.5% YoY to $229.0M, gross profit rose 9.2% to $38.0M, and diluted EPS was $(0.26) vs $(0.23) YoY .
Consolidated Adjusted EBITDA was $13.3M (burdened by $7.6M Conway scale-up costs) vs $13.7M YoY; Beverage Solutions and SS&T Segment Adjusted EBITDA each grew >50% YoY in Q4, reflecting strength in flavors/extracts/ingredients and sourcing volumes .
FY25 outlook was reset lower to ~$(66.5)M midpoint for Consolidated Adjusted EBITDA (1H: $17.5–$24M; 2H: $42.5–$49M) on conservatism around high coffee prices potentially tempering demand and ramp risks; FY26 outlook of $130–$150M Consolidated Adjusted EBITDA maintained, with no Conway scale-up costs in 2026 .
Management emphasized robust multi-year contract wins and Conway capacity sell-through, expecting deleveraging with Beverage Solutions secured net leverage improving from ~5.7x (6/30/25) to ~3.0x (12/31/26) if ramp proceeds as planned .

What Went Well and What Went Wrong

What Went Well

Segment profit acceleration: Beverage Solutions Segment Adjusted EBITDA rose 53% YoY to $17.8M; SS&T rose 51.6% YoY to $3.1M in Q4, driven by flavors/extracts/ingredients and higher coffee prices/volumes in SS&T .
Strategic progress and customer traction: CEO highlighted “over a dozen premier global CPG brands” contracted, with Conway ramp poised to drive “continued EBITDA growth over the next few years” as the large-scale RTD/extract complex comes online .
Cost/efficiency initiatives: Annualized ~$10M savings flagged earlier from facility consolidation and SG&A reductions; management reiterated operational improvements and expense control contributing to margin resilience (context from prior quarters) .

What Went Wrong

Losses widened: Q4 net loss of $(24.6)M vs $(20.1)M YoY; interest expense also rose to $11.9M vs $7.9M YoY (higher debt, facility investment) .
Conway scale-up drag: Consolidated Adjusted EBITDA of $13.3M included $7.6M of Conway scale-up costs; full-year scale-up costs were $12.8M, leading management to emphasize add-back context when comparing periods .
FY25 guidance cut: Management lowered FY25 consolidated adj. EBITDA (vs Q3’s preliminary $80–$100M) due to potential consumer demand softness if higher green coffee prices are passed through and prudent ramp assumptions for Conway/single-serve .

Financial Results

Income Statement and Profitability (comparisons vs prior quarter and prior year)

Metric	Q4 2023	Q3 2024	Q4 2024
Net Sales ($M)	$215.0	$220.9	$229.0
Gross Profit ($M)	$34.8	$37.1	$38.0
Gross Margin %	16.2% (calc)	16.8% (calc)	16.6% (calc)
Operating Loss ($M)	$(6.4)	$(12.7)	$(9.8)
Net (Loss) ($M)	$(20.1)	$(14.3)	$(24.6)
Diluted EPS ($)	$(0.23)	$(0.16)	$(0.26)
Consolidated Adjusted EBITDA ($M)	$13.7	$10.3	$13.3
Conway Scale-up Costs in EBITDA ($M)	$0.0	$4.0	$7.6

Notes: Margins are calculated from reported figures (citations point to underlying reported amounts).

Segment Breakdown

Segment	Metric	Q4 2023	Q3 2024	Q4 2024
Beverage Solutions	Net Sales ($M)	$175.1	$164.0	$174.1
	Segment Adjusted EBITDA ($M)	$11.7	$11.8	$17.8
SS&T	Net Sales ($M, net of intersegment)	$39.8	$56.9	$54.9
	Segment Adjusted EBITDA ($M)	$2.1	$2.5	$3.1

Balance Sheet / KPI Snapshots

KPI	Q4 2024
Cash and Cash Equivalents	$26.15M
Total Assets	$1,101.78M
Total Debt (LT debt net + ST debt + current maturities)	~$394.6M (calc from $325.88M LT + $54.66M ST + $14.06M current maturities)
Beverage Solutions Secured Net Leverage (TTM)	4.71x
Secured Net Debt (Beverage Solutions)	$295.58M
Q4 Capex	~$18M (management commentary)
FY24 Capex	~$160M (of which ~$140M Conway)
Conway Scale-up Costs in Q4	$7.6M

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Consolidated Adjusted EBITDA	FY 2025	$80–$100M (preliminary, Q3 release)	1H: $17.5–$24.0M; 2H: $42.5–$49.0M (midpoint FY ≈ $66.5M)	Lowered
Consolidated Adjusted EBITDA	FY 2026	Not previously ranged in Q3 release	$130–$150M; no Conway scale-up costs	Introduced / Maintained outlook per mgmt.
Beverage Solutions Segment Adj. EBITDA	FY 2025	Not provided prior	1H: $25–$30M; 2H: $45–$50M	Introduced
SS&T Segment Adj. EBITDA	FY 2025	Not provided prior	1H: $2.5–$4.0M; 2H: $2.5–$4.0M	Introduced
Beverage Solutions Secured Net Leverage	6/30/25; 12/31/25; 12/31/26	Not provided prior	5.70x; 4.90x; 3.00x	Introduced

Rationale for change: Management incorporated potential consumer demand impact if higher green coffee costs are passed through in 2H25 and added conservatism to Conway/Single-serve ramp; 2026 EBITDA unchanged and assumes full ramp, with scale-up costs eliminated .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q4 2024)	Trend
Conway RTD/extract ramp	First commercial multi-serve sales; can line first production; glass line later in year; target exit-run-rate $125–$150M entering 2026	Large can line sold-out for late Q1’25; second can line 2H’25; glass ramp Q3’25–Q1’26; implied FY25 $80–$100M (prelim.)	FY25 reset lower (~$66.5M mid) to reflect ramp conservatism; FY26 $130–$150M unchanged; no 2026 scale-up costs	Visibility improving; timing pushed; 2026 intact
Single-serve volumes	Trade-down to smaller pack sizes pressured volumes; outlook for recovery with new wins; EBITDA margin improved ~200 bps	Still soft; slight uptick; major new commitments expected to lift 2025 volumes/profits	New volume commitments begin Q3’25; new customer win by June 2025; cautious on consumer demand in 2H’25	Recovery expected, pace conservative
AI/technology	—	—	Leveraged AI/data insights to enhance commodity cost forecasting and risk management	New initiative highlighted
Tariffs/macro	—	—	Announced tariffs (Mexico/Canada/China) not expected to affect inputs; not included in 2025 forecast	Monitoring, limited direct impact
Coffee price inflation	—	—	~70% increase in 2024; pass-through model, but consumer demand could soften if pricing flows through late 2025	Risk factor for 2H’25
Cost reduction / footprint	~$10M annualized savings from consolidations; timing 2H’24–early 2025	Continued discipline and savings expectations	Full-year benefit expected in 2025	Tailwind in 2025
Leverage path	Net secured leverage 6.1x at 6/30/24; expected elevated during build	Liquidity ~$90M cash/undrawn; deleveraging with Conway ramp	Beverage Solutions secured net leverage 4.71x at 12/31/24; guided to 5.7x → 4.9x (2025) → 3.0x (2026)	Improving exiting 2025–2026

Management Commentary

Strategic positioning: “We made considerable progress… evidenced by the dozen new major brands… 4Q Segment Adjusted EBITDA growth in both our reportable segments of over 50%… poised for more of the same over the next couple of years as… the new $400 million manufacturing complex in Conway… comes online at scaled production levels this month.” — CEO Scott Ford, press release .
Integrated supplier thesis: “We set out to become the leading manufacturing partner to the preeminent global beverage brands… lead innovation… dependable sourcing… low-cost processing and packaging outsourcer.” — CEO prepared remarks .
2025/2026 ramp and leverage: “We believe… a 2-year perspective is important… expect $66.5M consolidated adjusted EBITDA in 2025 (incl. $15M Conway scale-up) and $140M in 2026 (no scale-up)… Beverage Solutions net secured leverage to ~3x by year-end 2026.” — CFO .

Q&A Highlights

Coffee price pass-through and demand risk: Higher green coffee costs are pass-through, but consumer demand could soften in back half of 2025 as costs flow through; this risk embedded in the FY25 guidance .
Scale-up costs drop out in 2026: No scale-up costs assumed in FY26 as can/glass lines reach run-rate exiting 2025 .
Contracting and take-or-pay: RTD/extract contracts incorporate take-or-pay or pricing adjustments at lower volumes; management prioritized long-term relationships and visibility over forcing early ramps .
Guidance granularity and visibility: 1H/2H 2025 split designed to show step-function ramp; stronger visibility expected by end of Q2’25 into Q3 volumes .
Capacity expansion: Ongoing expansion (second can line in 2H’25) and potential small can/bulk fill/bag-in-box later (not included in guidance yet) .

Estimates Context

Wall Street consensus (S&P Global) for Q4 2024 EPS and revenue was unavailable at the time of this analysis due to data access constraints. As a result, explicit “vs. consensus” comparisons could not be included; we will update when S&P Global consensus becomes available.

Key Takeaways for Investors

Near-term: The reset FY25 EBITDA midpoint (~$66.5M) reflects prudent ramp and demand risk management; watch 2Q–3Q’25 for confirmation of the Conway step-up and updated leverage trajectory — catalysts for sentiment .
Medium-term: FY26 EBITDA outlook ($130–$150M) unchanged with no scale-up costs anticipated, driven by sold-through RTD/extract capacity and multi-line commercialization; deleveraging to ~3x targeted by YE’26 .
Execution focus: Q4 showed >50% YoY segment EBITDA growth; continued strength in flavors/extracts/ingredients and SS&T volumes supports the base while Conway scales .
Risk monitor: Elevated coffee prices could dampen consumer demand as increases flow through; tariffs not expected to materially impact inputs; liquidity bolstered by upsized revolver to $200M .
Capital intensity tapering: Conway capex largely front-loaded; management expects operational improvements and cost savings to aid margins as ramp proceeds .
Contract quality: Take-or-pay/pricing mechanics in RTD/extract provide some volume protection; multi-year, multi-SKU commitments from premier brands underpin FY26 outlook .

Appendix: Additional Press Release During the Quarter

Westrock Coffee unveiled a redesigned corporate website emphasizing sustainability and tailored solutions (Oct 22, 2024), reinforcing brand positioning with Farmer Direct Verified and Raíz Sustainability programs .

Westrock Coffee Co (WEST)·Q4 2024 Earnings Summary