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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Westrock Coffee Q2 sales miss estimates as sourcing segment declines
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