WEST · Westrock Coffee Company, LLC

Cash Flow Quality

Cash Flow Quality

Westrock Coffee's net loss of $48.8 million in H1 2025 was significantly larger than the negative operating cash flow of $29.1 million, indicating that non-cash charges (depreciation, equity-based compensation) and working capital movements partially offset the loss. However, operating cash flow worsened by 85.3% year-over-year due to a substantial build in inventories ($43.3 million) and adverse derivative movements. Capital expenditures remained elevated at $61.8 million, though reduced from $105.1 million in the prior period, representing a capex intensity (capex/revenue) that likely exceeds operating cash flow, necessitating external financing. Indeed, the company relied heavily on debt proceeds and supply chain financing to fund operations and investments, with financing activities providing $109.9 million. No share repurchases or dividends were paid. The significant inventory build and reliance on financing raise concerns about cash flow sustainability.