Westrock Coffee Co (NASDAQ:WEST) stock rose 11.60% (As on March 13, 11:23:04 AM UTC-4, Source: Google Finance) after the company in the fourth quarter of FY 23 has reported the loss of $20.1 million to close out 2023, an improvement from a loss of $31.9 million for the fourth quarter of 2022. Earnings per share was a 23-cent loss in the quarter ended Dec. 31, compared with a loss of 44 cents per share in the fourth quarter of 2022. The quarterly loss included $1.9 million in transaction, restructuring and integration expenses, $5.1 million of startup costs related to the new Conway extract and ready-to-drink facility and other one-time items valued at $8.6 million. Consolidated gross profit for the fourth quarter of 2023 was $34.8 million and included $0.9 million of non-cash mark-to-market losses, compared to consolidated gross profit of $34.3 million for the fourth quarter of 2022, which included $2.7 million of non-cash mark-to-market losses.

Moreover, Adjusted EBITDA was $13.7 million for the fourth quarter of 2023, a decrease of $3.7 million, compared to the fourth quarter of 2022. Beverage Solutions segment contributed $175.1 million of net sales and $11.7 million of Adjusted EBITDA for the fourth quarter of 2023, compared to $192.6 million and $15.2 million, respectively, for the fourth quarter of 2022. SS&T segment, net of intersegment revenues, contributed $39.8 million of net sales and $2.1 million of Adjusted EBITDA for the fourth quarter of 2023, compared to $35.1 million and $2.3 million, respectively, for the fourth quarter of 2022.

Meanwhile, in January 2024 Westrock Coffee completed construction on its new $70m 530,000sq ft distribution facility in Conway – and expects the first products from the site to be shipped in April 2024. The facility will provide warehouse and distribution support to Westrock’s roasting to RTD facility in the same city, which is currently being upgraded as part of a $300m five-year expansion project.  Westrock Coffee also significantly invested in its wider operations last year, including relocating to a new 50,000sq ft headquarters in Little Rock, Arkansas, and acquiring California-based coffee roaster Bixby Roasting Co.

Additionally, at December 31, 2023, the Company had approximately $147.2 million of unrestricted cash and undrawn borrowings under its revolving credit facility, and the Company’s consolidated leverage ratio was 4.4x based on net debt to fourth quarter annualized Adjusted EBITDA.