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Westrock Coffee Q2 sales miss estimates as sourcing segment declines

Westrock Coffee Q2 sales miss estimates as sourcing segment declines


Overview

  • US beverage solutions provider's Q2 sales grew 8.8% yr/yr but missed analyst expectations

  • Q2 gross profit declined 8.8% yr/yr, net loss narrowed from prior year

  • Company reaffirmed 2026 adjusted EBITDA guidance; CEO says free cash flow turned positive ahead of schedule


Outlook

  • Westrock Coffee reaffirms 2026 Consolidated Adjusted EBITDA guidance of $90 mln to $100 mln


Result Drivers

  • BEVERAGE SOLUTIONS GROWTH - Co said sales growth was driven by Beverage Solutions segment, with net sales up 16.8% yr/yr

  • FREE CASH FLOW POSITIVE - Co said it turned free cash flow positive ahead of anticipated schedule, per CEO Scott T. Ford

  • SOURCING SEGMENT DECLINE - Co said Sustainable Sourcing & Traceability segment net sales fell 14.2% yr/yr


Company press release: ID:nGNX7YdTz7


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Sales

Miss

$305.66 mln

$318.85 mln (4 Analysts)

Q2 Net Loss

$13.66 mln

Q2 Gross Profit

$37.75 mln

Q2 Operating Expenses

$39.10 mln

Q2 Pretax Loss

$14.22 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the food processing peer group is "buy"

  • Wall Street's median 12-month price target for Westrock Coffee Co is $8.75, about 6.8% above its August 5 closing price of $8.19


Reuters Recommended Reads

  • Aug 6 - Keurig Dr Pepper reaffirms forecast on strong soda, energy drink demand

  • Aug 3 - Coffee maker BRC posts smaller Q2 loss as revenue gets boost from wholesale, DTC demand

  • Aug 6 - Protein coffee brand Javvy explores sale, sources say


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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