Westrock Coffee Company reported a net loss of $80.3 million for the fiscal year ending December 31, 2024, compared to a loss of $34.6 million in the previous year. The company's total revenue for 2024 was $850.7 million, a slight decrease from $864.7 million in 2023. The decline in revenue was primarily attributed to an 8.8% drop in the Beverage Solutions segment, which generated $659.4 million, largely due to decreased sales volumes of coffee and tea products. In contrast, the Sustainable Sourcing & Traceability segment saw a significant increase in revenue, rising 34.9% to $191.3 million, driven by a 39.5% increase in sales volume.
In terms of operational changes, Westrock Coffee has been consolidating its manufacturing operations, resulting in the closure of its West Winds facility in North Carolina and the Richmond facility in California. This restructuring is expected to enhance operational efficiency and reduce costs. The company recognized approximately $5.6 million in impairment charges related to these closures. Additionally, Westrock has been expanding its product offerings, particularly in the high-growth liquid extracts category, which includes ready-to-drink beverages.
The company has also made strategic financial moves, including the issuance of $72 million in convertible senior notes in February 2024, with a portion purchased by related parties. Furthermore, Westrock amended its credit agreement to increase its revolving credit facility to $200 million and to allow for additional borrowing capacity. As of December 31, 2024, the company had total debt of $447.7 million, with a secured net leverage ratio of 4.71:1.00, compliant with its financial covenants.
Westrock's workforce consisted of 1,408 employees as of the end of 2024, with a focus on enhancing operational capabilities and addressing customer needs. The company is also investing approximately $50 million to complete the build-out of its new extract and ready-to-drink facility in Conway, Arkansas, which is expected to be fully operational in 2025. Looking ahead, Westrock aims to leverage its expanded product lines and operational efficiencies to improve profitability and market share, despite the challenges posed by rising commodity prices and economic conditions.
About Westrock Coffee Co
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