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Westrock Coffee Company (WEST+0.14%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing details Westrock's operations in two segments: Beverage Solutions and Sustainable Sourcing & Traceability. Beverage Solutions reported a decrease in net sales to $659.4 million, down 8.8% from the previous year, attributed to a decline in coffee and tea product sales. Sustainable Sourcing & Traceability saw a 34.9% increase in net sales to $191.3 million, driven by higher sales volume.
Westrock's cost of sales decreased by 3.9% to $697 million, with a significant reduction in the Beverage Solutions segment due to lower sales volumes. However, costs increased in the Sustainable Sourcing & Traceability segment due to higher sales volumes.
Selling, general, and administrative expenses rose to $185.1 million, a 28% increase from the prior year, primarily due to higher expenses related to the Conway, Arkansas facility and increased personnel costs.
The company reported a net loss of $80.3 million for the year, compared to a net loss of $34.6 million in 2023. This increase in net loss is attributed to higher operating expenses and impairment charges related to restructuring activities.
Westrock completed several financial transactions, including a $72 million convertible notes offering and amendments to its credit agreement to increase liquidity and support growth initiatives.
The company also engaged in restructuring activities, including the closure and sale of certain manufacturing facilities, to improve operational efficiency.
Westrock's cash flow from operating activities was negative, with a net cash outflow of $13.2 million, primarily due to the net loss and changes in working capital.
The company anticipates continued investment in its Conway facility, with plans to install a second ready-to-drink can line in 2025, requiring an estimated $20 million.
Westrock's management has outlined strategies to address financial challenges, including potential cost reductions and capital expenditure adjustments, to maintain liquidity and covenant compliance.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Westrock Coffee Company annual 10-K report dated March 12, 2025. To report an error, please email earnings@qz.com.