Westrock Coffee Company Reports Q2 2025 Financial Results with Increased Net Sales but Higher Net Loss

Westrock Coffee Company reported its financial results for the second quarter of 2025, revealing a net loss of $21.6 million, or $0.23 per share, compared to a net loss of $17.8 million, or $0.20 per share, in the same period last year. The company’s net sales increased to $280.9 million, a 34.7% rise from $208.4 million in the prior year, driven by strong performance in both its Beverage Solutions and Sustainable Sourcing & Traceability segments. The Beverage Solutions segment saw sales of $208.8 million, up 27.9%, while the Sustainable Sourcing & Traceability segment reported sales of $72.0 million, a 59.6% increase.

Despite the increase in revenue, Westrock's gross profit remained relatively stable at $41.4 million, resulting in a gross margin of 14.7%, down from 19.9% in the previous year. The rise in costs of sales, which totaled $239.5 million, was attributed to increased sales volumes and higher coffee commodity prices. Selling, general, and administrative expenses also rose to $53.9 million, reflecting increased operational costs associated with the ramp-up of the Conway Facility, which is focused on ready-to-drink products.

In terms of operational developments, Westrock Coffee has made significant strides in its strategic initiatives. The company entered into a joint venture with ETC Holdings SA to enhance its Rwandan coffee export operations, contributing to a 49.9% ownership stake in the new venture. This partnership is expected to improve profitability and support smallholder farmers. Additionally, the company has de-consolidated its Rwanda Trading Company, recognizing a gain of $2.3 million from this transaction.

Westrock's total assets increased to $1.16 billion as of June 30, 2025, up from $1.10 billion at the end of 2024. The company reported a significant rise in cash and cash equivalents, totaling $44.0 million, compared to $26.2 million at the end of the previous fiscal year. However, total liabilities also increased to $865.6 million, primarily due to higher short-term debt and obligations under its supply chain finance program, which stood at $98.3 million.

Looking ahead, Westrock Coffee anticipates continued growth driven by its strategic initiatives and operational improvements. The company is focused on completing the build-out of its Conway Facility and expanding its product offerings. However, management has acknowledged potential challenges, including fluctuating commodity prices and the impact of tariffs on imported goods, which could affect liquidity and operational costs. The company remains committed to managing these risks while pursuing its growth objectives.