Westrock Coffee Company, LLC Q3 FY2025 earnings call

• Produced record-breaking quarterly results for the second quarter in a row, driven by new customer volume additions and cost management. • Conway plant has growing volumes at new single-serve cup and extract to RTD plants, with packaging lines nearing 80% of planned capacity and second can line to start commercial production in Q1 2026. • Excited about new body of work focused on ultra-filtered milk-based, high-protein products. • Received $30 million infusion of capital from traditional core shareholder group, realigning debt covenants to focus on operational delivery. • Continued supply chain optimization and disciplined expense management across business units.

Beverage Solutions segment: Net sales increased 60% year-over-year, and Segment Adjusted EBITDA grew 74% to $20.4 million in the third quarter. This growth was driven by a 4% increase in core roast and ground coffee volumes, an 85% volume increase in single-serve cup and supply chain optimization. SS&T segment: Net sales grew 62% over the third quarter of 2024, with Segment Adjusted EBITDA of $5.8 million, up from $2.5 million in the prior year quarter. Consolidated net sales increased 61% compared to the third quarter of 2024, while reported net loss was $19.1 million reflecting investment in the Conway extract and RTD facility. Consolidated Adjusted EBITDA was $23.2 million, representing 125% growth over the third quarter of 2024.

• For 2025, Consolidated Adjusted EBITDA is expected to be between $60 million and $65 million. Beverage Solutions Segment Adjusted EBITDA is expected to be between $63 million and $68 million, and SS&T Segment Adjusted EBITDA is expected to be between $14 million and $16 million. Beverage Solutions credit agreement secured net leverage ratio is expected to be 4.5x. • 2026 guidance not updated yet due to uncertainty from a key customer's M&A transaction and continued elevated coffee prices/tariffs; greater clarity expected ahead of fourth quarter call, and 2026 outlook will be updated then.

• Uncertainty regarding a key customer's single-serve cup volume commitment for 2026 due to their involvement in a large M&A transaction. • Continued elevated coffee prices and tariff costs creating uncertainty regarding consumer response to higher coffee prices across various channels.

Q: Checking in on the progress of some of the production lines after delays reported last quarter.

A: Scott mentioned they've run 80% to 125% of expected volumes on main can line, customers are caught up, and glass line is making commercial product starting in December.

Q: Expanding on the newly announced ultra-filtered high-protein milk product.

A: Scott said it's early days, demand is high, product development cycle is about 12 months, and they could leverage existing production facilities with incremental investment.

Q: About coffee sourcing and managing high coffee prices/tariffs.

A: Chris said 60% of coffee is from Brazil with high tariffs, they optimize coffee use and blend, and the capital raise helps manage through high prices/tariffs.

Q: On the single-serve customer and balance sheet allowing offense.

A: Scott said a customer was incorporated in 2026 guidance, and the balance sheet improvement allows them to chip away at incremental opportunities, with Conway set to be EBITDA profitable and free cash flow positive soon.

Q: On expanded single-serve capacity and customer situation.

A: Scott said they don't know about backlog of customer demand, but one large single-serve customer is in M&A transaction, and they'll update outlook by end of year; also mentioned daily battle in competitive markets with wins and losses.