Westrock Coffee Co Segments Disclosure
Note 20. Segment Information
Our two 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, including management services and consulting agreements entered into in connection with the acquisition of S&D Coffee, Inc., impairment charges, changes in the fair value of warrant liabilities, non-cash mark-to-market adjustments, certain non-capitalizable costs necessary to place the Conway extract and ready-to-drink facility into commercial production, certain recurring operating costs related to the scale-up of operations of the Conway extract and ready-to-drink 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, its 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:
Year Ended December 31, 2025 | |||||||||
| | Sustainable | | ||||||
Beverage | Sourcing & | ||||||||
(Thousands) | Solutions | Traceability | Total | ||||||
Net sales(1) | $ | 908,449 | $ | 280,503 | $ | 1,188,952 | |||
Segment Adjusted EBITDA | 68,481 | 16,523 | 85,004 | ||||||
Less: | |||||||||
Interest expense | 55,747 | ||||||||
Depreciation and amortization | 55,836 | ||||||||
Transaction, restructuring and integration expense | 9,475 | ||||||||
Equity-based compensation | 14,552 | ||||||||
Conway extract and ready-to-drink facility pre-production costs | 24,725 | ||||||||
Conway extract and ready-to-drink facility scale up operating costs | 15,328 | ||||||||
Mark-to-market adjustments | 629 | ||||||||
(Gain) loss on disposal of property, plant and equipment | 1,278 | ||||||||
Other | 4,552 | ||||||||
Loss before income taxes and equity in earnings from unconsolidated entities | $ | (97,118) | |||||||
Capital expenditures | $ | 88,770 | $ | 30 | $ | 88,800 | |||
Total assets | 1,175,846 | 132 | 1,175,978 | ||||||
| (1) | Excludes $8.4 million of intersegment revenues that represent sales of green coffee from our SS&T segment to our Beverage Solutions segment. |
Year Ended December 31, 2024 | |||||||||
| | Sustainable | | ||||||
Beverage | Sourcing & | ||||||||
(Thousands) | Solutions | Traceability | Total | ||||||
Net sales(1) | $ | 659,383 | $ | 191,343 | $ | 850,726 | |||
Segment Adjusted EBITDA | 53,639 | 6,366 | 60,005 | ||||||
Less: | |||||||||
Interest expense | 33,856 | ||||||||
Depreciation and amortization | 34,745 | ||||||||
Transaction, restructuring and integration expense | 13,797 | ||||||||
Change in fair value of warrant liabilities | (7,015) | ||||||||
Equity-based compensation | 11,608 | ||||||||
Impairment charges | 5,686 | ||||||||
Conway extract and ready-to-drink facility pre-production costs | 35,544 | ||||||||
Conway extract and ready-to-drink facility scale up operating costs | 12,825 | ||||||||
Mark-to-market adjustments | (4,622) | ||||||||
(Gain) loss on disposal of property, plant and equipment | (1,722) | ||||||||
Other | 1,681 | ||||||||
Loss before income taxes and equity in earnings from unconsolidated entities | $ | (76,378) | |||||||
Capital expenditures | $ | 159,391 | $ | 234 | $ | 159,625 | |||
Total assets | 1,004,126 | 97,654 | 1,101,780 | ||||||
| (1) | Excludes $11.1 million of intersegment revenues that represent sales of green coffee from our SS&T segment to our Beverage Solutions segment. |
Year Ended December 31, 2023 | |||||||||
| | Sustainable | | ||||||
Beverage | Sourcing & | ||||||||
(Thousands) | Solutions | Traceability | Total | ||||||
Net sales(1) | $ | 722,865 | $ | 141,849 | $ | 864,714 | |||
Segment Adjusted EBITDA | 41,624 | 3,457 | 45,081 | ||||||
Less: | |||||||||
Interest expense | 29,157 | ||||||||
Depreciation and amortization | 26,584 | ||||||||
Transaction, restructuring and integration expense | 14,557 | ||||||||
Change in fair value of warrant liabilities | (10,207) | ||||||||
Management and consulting fees (S&D acquisition) | 556 | ||||||||
Equity-based compensation | 8,708 | ||||||||
Conway extract and ready-to-drink facility pre-production costs | 11,698 | ||||||||
Mark-to-market adjustments | (104) | ||||||||
(Gain) loss on disposal of property, plant and equipment | 1,153 | ||||||||
Other | 3,804 | ||||||||
Loss before income taxes and equity in earnings from unconsolidated entities | $ | (40,825) | |||||||
Capital expenditures | $ | 164,474 | $ | 137 | $ | 164,611 | |||
Total assets | 891,170 | 80,344 | 971,514 | ||||||
| (1) | Excludes $5.1 million of intersegment revenues that represent sales of green coffee from our SS&T segment to our Beverage Solutions segment. |
Approximately 100% of our long-lived assets were located in the United States as of December 31, 2025.
Significant segment expense for our reportable segments is presented below for the periods indicated:
Year Ended December 31, 2025 | ||||||
| | Sustainable | ||||
Beverage | Sourcing & | |||||
(Thousands) | Solutions | Traceability | ||||
Net Sales | $ | 908,449 | $ | 280,503 | ||
Less: | ||||||
Costs of sales | 735,008 | 257,539 | ||||
Employee related(1) | 57,742 | 8,094 | ||||
Information technology | 7,207 | n/a | ||||
Advertising & marketing | 2,310 | n/a | ||||
Professional fees | 9,656 | n/a | ||||
Corporate insurance | 6,309 | n/a | ||||
Freight | 11,734 | n/a | ||||
Other segment expense(2) | 10,002 | (1,653) | ||||
Segment Adjusted EBITDA | $ | 68,481 | $ | 16,523 | ||
Year Ended December 31, 2024 | ||||||
| | Sustainable | ||||
Beverage | Sourcing & | |||||
(Thousands) | Solutions | Traceability | ||||
Net Sales | $ | 659,383 | $ | 191,343 | ||
Less: | ||||||
Costs of sales | 502,194 | 174,274 | ||||
Employee related(1) | 45,227 | 7,363 | ||||
Information technology | 5,692 | n/a | ||||
Advertising & marketing | 3,949 | n/a | ||||
Professional fees | 10,698 | n/a | ||||
Corporate insurance | 7,197 | n/a | ||||
Freight | 14,492 | n/a | ||||
Other segment expense(2) | 16,295 | 3,340 | ||||
Segment Adjusted EBITDA | $ | 53,639 | $ | 6,366 | ||
Year ended December 31, 2023 | ||||||
| | Sustainable | ||||
Beverage | Sourcing & | |||||
(Thousands) | Solutions | Traceability | ||||
Net Sales | $ | 722,865 | $ | 141,849 | ||
Less: | ||||||
Costs of sales | 582,528 | 127,994 | ||||
Employee related(1) | 36,296 | 6,285 | ||||
Information technology | 4,351 | n/a | ||||
Advertising & marketing | 5,562 | n/a | ||||
Professional fees | 8,413 | n/a | ||||
Corporate insurance | 5,020 | n/a | ||||
Freight | 17,846 | n/a | ||||
Other segment expense(2) | 21,225 | 4,113 | ||||
Segment Adjusted EBITDA | $ | 41,624 | $ | 3,457 | ||
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.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 10, 2026 | Showing above |
| 2024 | Mar 12, 2025 | |
| 2023 | Mar 15, 2024 | |
| 2022 | Mar 21, 2023 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.