Westrock Coffee Co

For the period ended Mar 31, 2025. Filed May 8, 2025.

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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Mar 31, 2025 · Filed May 8, 2025

WEST$8.99-13.3%Stored close · as of Nov 6, 2026

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Contents

18. Segment Information

Note 18. Segment Information

Ourtwo operating segments, Beverage Solutions and Sustainable Sourcing & Traceability, are evaluated using Segment Adjusted EBITDA, which is a segment performance measure. We define Segment Adjusted EBITDA as net (loss) income determined in accordance with GAAP, before interest expense, provision for income taxes, depreciation and amortization, equity-based compensation expense and the impact, which may be recurring in nature, of transaction, restructuring and integrations costs, impairment charges, changes in fair value of warrant liabilities, non-cash mark-to-market adjustments, certain non-capitalizable costs necessary to place the Conway Facility into commercial production,

certain recurring operating costs related to the scale-up of operations of the Conway Facility, the write off of unamortized deferred financing costs, costs incurred as a result of the early repayment of debt, gains or losses on dispositions, and other similar or infrequent items (although we may not have had such charges in the periods presented).

The Company’s Chief Executive Officer, it’s chief operating decision maker (“CODM”), reviews Segment Adjusted EBITDA for the purpose of making operating decisions, assessing financial performance, and deciding how to allocate resources. Segment Adjusted EBITDA is used by the CODM to review operating trends and to monitor budget-to-actual variances in order to make key operating decisions.

Selected financial data, including a reconciliation of total reportable segments’ Segment Adjusted EBITDA to loss before income taxes and equity in earnings from unconsolidated entities, is presented below for the periods indicated:


· · Three Months Ended March 31, 2025
· · · Sustainable ·
· · Beverage · · Sourcing & · ·
(Thousands) · · Solutions · · Traceability · · Total
Net sales(1)	$164,079	$49,717	$213,796

Segment Adjusted EBITDA	9,583	1,928	11,511
Less:
Interest expense			12,599
Depreciation and amortization			11,755
Transaction, restructuring and integration expense			1,791
Equity-based compensation			3,331
Conway extract and ready-to-drink facility pre-production costs			4,449
Conway extract and ready-to-drink facility scale up operating costs			3,287
Mark-to-market adjustments			(2,073)
(Gain) loss on disposal of property, plant and equipment			7
Other			1,755
Loss before income taxes and equity in earnings from unconsolidated entities			$(25,390)

Total assets	1,023,875	114,829	1,138,704

(1)	Excludes $3.9 million of intersegment revenues that represent sales of green coffee from our SS&T segment to our Beverage Solutions segment.


· · Three Months Ended March 31, 2024
· · · Sustainable ·
· · Beverage · · Sourcing & · ·
(Thousands) · · Solutions · · Traceability · · Total
Net sales(1)	$158,059	$34,441	$192,500

Segment Adjusted EBITDA	10,800	342	11,142
Less:
Interest expense			7,579
Depreciation and amortization			7,548
Transaction, restructuring and integration expense			2,964
Change in fair value of warrant liabilities			(41)
Equity-based compensation			2,455
Conway extract and ready-to-drink facility pre-production costs			9,796
Mark-to-market adjustments			(1,640)
(Gain) loss on disposal of property, plant and equipment			2
Other			284
Loss before income taxes and equity in earnings from unconsolidated entities			$(17,805)

Total assets	917,091	66,165	983,256

(1)	Excludes $1.9 million of intersegment revenues that represent sales of green coffee from our SS&T segment to our Beverage Solutions segment.

Significant segment expense for our reportable segments is presented below for the periods indicated:


· · · Three Months Ended March 31, 2025
· · · Sustainable
· · Beverage · · Sourcing &
(Thousands) · · Solutions · · Traceability
Net Sales	$164,079	$49,717
Less:
Costs of sales	131,440	45,426
Employee related(1)	11,806	1,789
Information technology	2,035	n/a
Advertising & marketing	716	n/a
Professional fees	2,093	n/a
Corporate insurance	1,595	n/a
Freight	3,008	n/a
Other segment expense(2)	1,803	574
Segment Adjusted EBITDA	$9,583	$1,928

(1)	Employee related costs are costs reported within selling, general and administrative expense in our Consolidated Statements of Operations, and include employee salaries, related taxes and benefits, short-term cash incentive compensation and travel and entertainment expenses.

(2)	Other segment expense includes equipment and real estate rent, equipment parts, supplies and service expenses and other overhead expenses.


· · · Three Months Ended March 31, 2024
· · · Sustainable
· · Beverage · · Sourcing &
(Thousands) · · Solutions · · Traceability
Net Sales	$158,059	$34,441
Less:
Costs of sales	120,487	31,806
Employee related(1)	11,923	1,550
Information technology	1,374	n/a
Advertising & marketing	675	n/a
Professional fees	2,552	n/a
Corporate insurance	2,091	n/a
Freight	3,477	n/a
Other segment expense(2)	4,680	743
Segment Adjusted EBITDA	$10,800	$342

(1)	Employee related costs are costs reported within selling, general and administrative expense in our Consolidated Statements of Operations, and include employee salaries, related taxes and benefits, short-term cash incentive compensation and travel and entertainment expenses.

(2)	Other segment expense includes equipment and real estate rent, equipment parts, supplies and service expenses and other overhead expenses.

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