Westrock Coffee Provides Business Announcements, Update On Preliminary FY23 Results, Initial 2024 Outlook; Sees FY23 Adjusted EBITDA To Fall Near The Low End Of Its Previously Disclosed Guidance Range Of $45M-$50M
Portfolio Pulse from Benzinga Newsdesk
Westrock Coffee Company (NASDAQ:WEST) announced several business developments including the expansion of its Extract and RTD facility in Conway, Arkansas, a joint venture with Select Milk Producers for a new facility in Texas, and the issuance of $72 million in convertible senior unsecured notes to fund these expansions. The company also provided an update on its FY23 preliminary results, expecting Adjusted EBITDA to be near the lower end of its $45M-$50M guidance range, and shared its initial outlook for 2024.
February 15, 2024 | 9:38 pm
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Westrock Coffee announced facility expansions, a joint venture, issuance of convertible notes, and provided FY23 results and 2024 outlook.
The announcement of facility expansions and a joint venture indicates growth and investment in future capabilities, which could be seen positively. However, the FY23 EBITDA expectation at the lower end of the guidance range might concern investors about current profitability. The issuance of convertible notes adds complexity, potentially diluting current shareholders but also providing necessary capital for expansion. Overall, these developments have mixed implications for the short-term stock price direction.
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IMPORTANCE 90
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