WEST Stock Forecast & Price Target

Westrock Coffee Co demonstrated a solid financial performance in the fourth quarter of 2024, achieving a 6.5% increase in sales to $229 million, and it is projected to continue this momentum with total sales growth expected to reach 9.0% for the full fiscal year, culminating in $914 million. The company's Sustainable Sourcing & Traceability segment exhibited remarkable growth of 38%, underscoring its robust demand in a competitive market. Looking ahead, management anticipates an impressive ~50% annual growth in adjusted EBITDA over the next two years, driven by new retail customer acquisitions and improved production efficiencies, especially from the upcoming ramp-up at the Conway, AR facility.

Westrock Coffee Co is facing significant profitability challenges, as evidenced by an anticipated adjusted EBITDA margin compression from 7.3% to 5.5%, along with projected sales growth of approximately 1.0% despite a notable 6.5% decline in the Beverage Solutions segment. Furthermore, the company’s 2025 adjusted EBITDA guidance of $60MM-$73MM falls short of previous forecasts due to demand softening amid rising coffee prices and uncertainties surrounding the operations of its new facility in Conway, AR. Additionally, there are execution challenges tied to customer onboarding and production ramp delays, further contributing to a bleak financial outlook.