Westrock Coffee Company - WEST STOCK NEWS

Welcome to our dedicated page for Westrock Coffee Company news (Ticker: WEST), a resource for investors and traders seeking the latest updates and insights on Westrock Coffee Company stock.

Westrock Coffee Company (NASDAQ: WEST) is a leading integrated provider of coffee, tea, flavors, extracts, and ingredients solutions in the United States. Headquartered in Little Rock, Arkansas, Westrock Coffee is dedicated to creating sustainable economic opportunities for communities deeply mired in poverty through competitive trade. The company prides itself on its end goal of sustainability and not just having it as a separate program.

Westrock Coffee operates through two main segments: Beverage Solutions and Sustainable Sourcing and Traceability. The Beverage Solutions segment is the primary revenue generator, offering comprehensive services such as coffee sourcing, supply chain management, product development, roasting, packaging, and distribution. Their products cater to retail, foodservice, restaurant, convenience store, non-commercial accounts, consumer packaged goods (CPG), and hospitality industries worldwide.

One of the company's recent achievements includes the closing of a $118.8 million equity raise, which aims to fully fund the expanded capabilities of their Conway, Arkansas-based extract and ready-to-drink (RTD) facility. They currently have customer commitments for 100% of the capacity available in their high-speed can and glass bottle lines and are working towards expanding this capacity further. Their team of quality experts, graders, and coffee cuppers work closely with roasters to create unique roast calculations for each coffee varietal, ensuring consistency and quality in every cup.

The company is also expanding its facility to enhance its extract and concentration capabilities and to include cold-chain capacity for multi-serve bottles. In addition, Westrock Coffee has entered into a non-binding letter of intent with Select Milk Producers to establish a joint venture aimed at building and operating an extended shelf life and aseptic, multi-serve bottle facility in Littlefield, Texas.

Financially, Westrock Coffee has recently issued $72 million aggregate principal amount of convertible senior unsecured notes due 2029 to fund their ongoing projects, including the joint venture and Conway facility expansion. The company has also amended its existing credit agreement to increase its leverage financial covenant compliance levels and decrease its minimum interest coverage ratio compliance level through the first quarter of 2026.

For the fiscal year 2023, Westrock Coffee expects its Adjusted EBITDA to fall near the low end of its guidance range of $45 million to $50 million. For 2024, the company projects consolidated Adjusted EBITDA to be between $60 million and $80 million, reflecting the commencement of operations at the Conway, Arkansas facility and the commercialization of customers at that location.

Through partnerships with global retailers including Kroger, Harps, Bi-Lo, Winn-Dixie, Food Lion, and Hannaford, as well as online sales, Westrock Coffee ensures that its high-quality products are accessible to a wide range of consumers. The company's commitment to sustainability, quality, and economic empowerment makes it a significant player in the global coffee industry.