Westrock Coffee Co. Q1 FY2025 earnings call

• The company continued progress towards being the premier integrated strategic supplier to global coffee, tea, and energy beverage brands.
• Combined Beverage Solutions and SS&T segment EBITDAS were $11.5 million in Q1 2025, in line with expectations.
• Reaffirmed guidance for first half of 2025 ($27.5M - $34M adjusted EBITDA combination) and full year 2025 ($75M - $88M).
• Conway, Arkansas facilities: RTD facility went commercial, single-serve cup plant launched smoothly with support from nearby team.
• Plans to bring second can line online in Q3, third can line on-site, retail packaging capacity expansion, and single-serve plant capacity extension.
• Team is managing challenges at Conway facilities with confidence as the punch list of tasks is short and manageable.

In the first quarter of 2025, the Beverage Solutions segment had a 3.8% increase in net sales, with segment adjusted EBITDA of $9.6 million compared to $10.8 million in the first quarter of 2024. The Sustainable Sourcing Traceability (SS&T) segment saw a 44% increase in sales compared to the first quarter of 2024, resulting in segment adjusted EBITDA of $1.9 million compared to $300,000 in the first quarter of 2024. Combined, the Beverage Solutions and SS&T segment EBITDAS were $11.5 million in the first quarter, up 3.3% over the prior year.

• Reaffirmed first half 2025 guidance: Combined beverage solutions and SS&T segment adjusted EBITDA should total between $27.5 million and $34 million.
• Full year 2025 guidance: Combined adjusted EBITDA should track to between $75 million and $88 million, up roughly 35% over 2024.
• Confident in attaining deliverables at Conway facilities as the punch list of tasks is short and manageable.

• Historically high green coffee prices.
• Impact of recently announced tariffs on coffee costs, which will affect inventory values but are passed through to customers.
• Political and macroeconomic environment impact on consumer confidence and spending, which is being closely monitored and expenses are managed accordingly.

Q: Inquired about full-scale production start at Conway, can line timelines, and glass line plans.

A: Scott Ford responded that the first large can line started this month with ramp-up in May and June, the second can line comes on in the third quarter (August/September timeframe), and the glass line turns on in the third quarter and ramps up over three quarters to full capacity.

Q: Follow-up on single serve volume ramp and Conway capacity.

A: Scott and Chris discussed that single serve is seeing growth from new wins and volume ramping up, with Conway currently at ~85% of theoretical throughput and room to expand capacity.

Q: About customer order visibility and Conway capacity beyond initial lines.

A: Scott stated demand is strong with customers lining up for capacity, and Chris mentioned room to expand Conway facility further for various products.

Q: Macro level on coffee demand, sea price, and tariffs.

A: Scott discussed market share shift and improving unit demand, noting tariffs' impact was offset by c price drop on announcement day.

Q: Recent wins offsetting volume headwinds and capacity for additional wins.

A: Scott detailed wins in core coffee/tea, single serve, and ready to drink categories, with widespread capacity availability to take additional wins.

Q: Variability in guidance outlook.

A: Chris discussed scale-up variability in Conway facility and potential consumer outlook impact on beverage choices, but no reason to adjust guidance currently