Westrock Coffee Co (WEST) 2024 Q2 法說會逐字稿

Hello, and welcome to Westrock Coffee Company's second-quarter 2024 earnings conference call. My name is [Kathy Darnell], and I'll be coordinating your call today. Following prepared remarks, we will open the call to your questions with instructions to be given at that time. I'll now hand the call over to Robert Mounger with Westrock Coffee.

您好，歡迎參加 Westrock Coffee Company 2024 年第二季財報電話會議。我的名字是 [Kathy Darnell]，今天我將協調您的電話。在準備好發言後，我們將開始電話詢問您的問題，屆時將給予說明。我現在會把電話轉給 Westrock Coffee 的 Robert Mounger。

Thank you, and welcome to Westrock Coffee Company's second-quarter 2024 earnings conference call. Today's call is being recorded. With us are Mr. Scott Ford, Co-Founder and Chief Executive Officer; and Mr. Chris Pledger, Chief Financial Officer.

謝謝，歡迎參加 Westrock Coffee Company 的 2024 年第二季財報電話會議。今天的通話正在錄音。與我們一起的還有聯合創始人兼首席執行官 Scott Ford 先生；和財務長 Chris Pledger 先生。

By now, everyone should have access to the company's second quarter earnings release issued earlier today. This information is available on the Investor Relations section of Westrock Coffee Company's website at investors.westrockcoffee.com.

到目前為止，每個人都應該可以看到該公司今天早些時候發布的第二季財報。此資訊可在 Westrock Coffee Company 網站的投資者關係部分找到：investors.westrockcoffee.com。

Certain comments made on this call include forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and beliefs concerning future events and are subject to several risks and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements. Please refer to today's press release and other filings with the SEC for a more detailed discussion of the risk factors that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today.

本次電話會議中的某些評論包括前瞻性陳述，這些陳述受到 1995 年《私人證券訴訟改革法案》安全港條款的約束。這些前瞻性陳述是基於管理層目前對未來事件的預期和信念，並受到多種風險和不確定性的影響，這些風險和不確定性可能導致實際結果與這些前瞻性陳述中描述的結果有重大差異。請參閱今天的新聞稿和向美國證券交易委員會提交的其他文件，以更詳細地討論可能導致實際結果與今天所做的任何前瞻性聲明中明示或暗示的結果存在重大差異的風險因素。

Also, discussions during the call will use some non-GAAP financial measures as we describe business performance. The SEC filings as well as the earnings press release provide reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures. And with that, it's my pleasure to turn the call over to Scott Ford, our Co-Founder and Chief Executive Officer.

此外，在電話會議期間的討論將使用一些非公認會計準則財務指標來描述業務績效。美國證券交易委員會的文件以及收益新聞稿提供了這些非公認會計原則財務指標與最直接可比較的公認會計原則指標的調節表。至此，我很高興將電話轉給我們的共同創辦人兼執行長史考特福特。

Thank you, Robert, and good afternoon, everyone. We have a number of significant updates that we're pleased to share with you today in conjunction with the second quarter's earnings details, which our CFO, Chris Pledger, will take you through in just a moment. The second quarter of '24 marks a celebratory milestone for all of us that have labored so hard for so long to bring to realization the commencement of commercial operations of our Conway, Arkansas extract and ready-to-drink facility. We are in full production and sales mode on our multi-serve bottle line. We have completed the startup of our RTD canning line and expect to begin commercial sales off that line in the second half of this year, and we are on target for the completion of our glass bottle line later this year.

謝謝羅伯特，大家下午好。我們今天很高興與您分享一些重要的更新以及第二季度的收益詳細信息，我們的首席財務官 Chris Pledger 將立即向您介紹這些信息。24 年第二季對我們所有人來說都是一個值得慶祝的里程碑，我們長期以來一直在努力工作，以實現我們位於阿肯色州康威的提取物和即飲工廠的商業運營。我們的多用途瓶生產線處於全面生產和銷售模式。我們已經完成了 RTD 罐頭生產線的啟動，預計在今年下半年開始該生產線的商業銷售，我們的玻璃瓶生產線的目標是在今年稍後竣工。

Importantly, as we continue our sales effort to fill these lines, we have several new commitments in hand that we expect will completely fill our RTD canning line over the next 18 months. Our glass bottle line remains fully committed to an anchor tenant that we expect will commence purchasing product in mid-'25 and our multi-serve bottle line has already been forced to add a second production shift. This essentially completes our commitment to having the lines in place on time and largely sold through before they begin full production.

重要的是，隨著我們繼續進行銷售工作來填補這些生產線，我們手頭上有幾項新的承諾，我們預計這些承諾將在未來 18 個月內完全填補我們的 RTD 罐頭生產線。我們的玻璃瓶生產線仍然完全致力於主要租戶，我們預計該租戶將在 25 年中期開始購買產品，而我們的多服務瓶生產線已被迫增加第二個生產班次。這基本上完成了我們對生產線按時到位並在開始全面生產之前大部分銷售的承諾。

My hat is off too and my gratitude is profound for each of the team members that financed, designed, built, created products for, sold and commercialized each of the production and packaging lines in this magnificent facility. I know of no other team in the world who could have accomplished these goals in this time frame and within this budget; unprecedented and yet so typical of these fantastic individuals who sought each other out and came together from every corner of this industry to do something extraordinary for our customers, shareholders, communities and the farmers who reside at the origin source of these vast and complex global supply chains.

我也向為這座宏偉工廠的每條生產和包裝線提供資金、設計、建造、創造產品、銷售和商業化的每一位團隊成員致以深深的謝意。據我所知，世界上沒有其他團隊能夠在這個時間範圍內和這個預算內實現這些目標；這些出色的個人從這個行業的各個角落互相尋找並聚集在一起，為我們的客戶、股東、社區和居住在這些龐大而復雜的全球供應源頭的農民做一些非凡的事情，這是史無前例的，但卻是非常典型的。

As an old and important mentor of mine, [Eamonn Mahoney], once told me, if you're not happy when you can be, you never will be. So today, we are happy to share this exceptionally good news with all of you. Now having stopped momentarily to celebrate and before I turn the call over to Chris, let me say a word or two about our current operations and outlook. The investments we made over the past two years in people, processes and systems are paying off handsomely, and our core operating and sales metrics are the best they have been in years; hence, the 200 basis point improvement in margins. In fact, we were extremely pleased with every key performance metric we measure, except for unit sales in our single-serve cup segment this quarter.

正如我的一位重要的老導師 [Eamonn Mahoney] 曾經告訴我的那樣，如果你在可以快樂的時候卻不快樂，那麼你永遠都不會快樂。所以今天，我們很高興與大家分享這個特別的好消息。現在，我暫時停下來慶祝一下，然後在將電話轉給克里斯之前，讓我就我們當前的營運和前景說一兩句話。過去兩年我們在人員、流程和系統方面的投資得到了豐厚的回報，我們的核心營運和銷售指標是多年來最好的；因此，利潤率提高了 200 個基點。事實上，我們對我們衡量的每一個關鍵績效指標都非常滿意，除了本季單杯細分市場的單位銷售量。

We could have easily been up over 50% in adjusted EBITDA year-over-year and not just 20%, had the retail customer acted just nearly normal in the quarter. We believe the volume miss is primarily due to the trade-down in packaging size that the retail private label customer is executing across multiple products as interest rates and fuel prices continue to absorb a disproportionately higher portion of their disposable income. I doubt that the current single-serve cup volume softness is permanent, and we have a number of new volume opportunities in this category that we are currently working on, which would not only fill this hole, but be very additive to our business overall. So I remain very optimistic about the market position and commensurate earnings power we are assembling over the next few years. I'd like to conclude my prepared remarks by offering this important insight.

如果零售客戶在本季的表現幾乎正常的話，我們的調整後 EBITDA 年成長可能會輕鬆超過 50%，而不僅僅是 20%。我們認為，銷售下降主要是由於零售自有品牌客戶在多種產品上執行包裝尺寸的縮減，因為利率和燃料價格繼續吸收了其可支配收入中不成比例的較高部分。我懷疑目前的單杯容量柔軟度是否會永久存在，我們目前正在研究這一類別中的許多新的容量機會，這不僅可以填補這個空白，而且對我們的整體業務非常有幫助。因此，我對未來幾年我們正在整合的市場地位和相應的獲利能力仍然非常樂觀。我想透過提供這重要的見解來結束我準備好的發言。

Our '24 and first half of '25 forecasts are still subject to material movement as volume onboarding discussions are likely to continue through the end of this year. That said, we are now much better equipped to gauge the volumes we expect to move through our plants in the back half of '25 once the onboarding transitions are completed. Therefore, we can now estimate an annualized adjusted EBITDA run rate of somewhere between $125 million and $150 million as we exit 2025 and enter 2026. Obviously, we have a number of potential opportunities beyond this base level, including the expected continuing development of the Select Milk Producers joint venture, which we now expect to wind up later this year as our sales pipeline fills for these products. I believe this is the most accurate and helpful information we can share at the moment. And so with that, I'll now turn the call over to Chris for a review of our financial results. Chris?

我們對 24 年和 25 年上半年的預測仍會受到重大變化的影響，因為大量的入職討論可能會持續到今年年底。也就是說，一旦入職過渡完成，我們現在可以更好地衡量 25 年下半年我們工廠的運輸量。因此，我們現在可以估計，當我們退出 2025 年並進入 2026 年時，年化調整後 EBITDA 運行率在 1.25 億美元至 1.5 億美元之間。顯然，我們還有許多超出這一基本水平的潛在機會，包括預計將持續發展的Select Milk Producers 合資企業，隨著我們的這些產品的銷售渠道填滿，我們現在預計該合資企業將於今年晚點時候結束。我相信這是我們目前可以分享的最準確和最有用的信息。因此，我現在將電話轉給克里斯，以審查我們的財務表現。克里斯？

Thanks, Scott, and good afternoon, everyone. We're pleased with another strong quarter driven by 13% gross profit growth in our beverage solutions segment, contributing to 21% growth in our consolidated adjusted EBITDA. On a consolidated basis, net sales for the second quarter were $208.4 million, down 7.3% from the second quarter of 2023. Despite the drop in sales, consolidated gross profit was up 16%, driven by operational and procurement improvements in our core coffee business, continued strength within our flavors, extracts and ingredients platform and almost 50% gross profit growth in our SS&T segment. This drove consolidated adjusted EBITDA of $13.7 million in the second quarter of 2024, which is a 21% increase year-over-year.

謝謝斯科特，大家下午好。我們對飲料解決方案部門毛利成長 13% 的推動下又一個強勁的季度感到高興，為我們的綜合調整後 EBITDA 增長 21% 做出了貢獻。合併後，第二季淨銷售額為 2.084 億美元，較 2023 年第二季下降 7.3%。儘管銷售額下降，但綜合毛利潤增長了16%，這得益於我們核心咖啡業務的運營和採購改進、我們的香料、提取物和配料平台的持續實力以及我們的SS&T 部門的毛利潤增長近50%。這推動 2024 年第二季綜合調整後 EBITDA 達到 1,370 萬美元，年增 21%。

Moving to our segments. Beverage solutions contributed $163.3 million of net sales, which is a decrease of approximately 14% compared to the second quarter of last year. While we continue to see strong results from our flavors, extracts and ingredients platform with 7% sales growth, volumes remained under pressure in our core coffee business and for the first time in our single-serve cup business, driving lower sales in both of those platforms. On our first quarter call, we talked about budget-conscious lower and middle-income consumers making fewer trips to restaurants and convenience stores. While that continued to be the case in the second quarter, we are now seeing that same consumer group forgo purchasing single-serve cups in bulk preferring to purchase smaller pack sizes as a way to stretch their paycheck.

轉向我們的細分市場。飲料解決方案貢獻了 1.633 億美元的淨銷售額，與去年第二季相比下降了約 14%。雖然我們繼續看到我們的香料、萃取物和配料平台取得了強勁的業績，銷售額增長了7%，但我們的核心咖啡業務和單份杯業務的銷量仍然面臨壓力，這導致這兩個業務的銷售額下降平台。在第一季的電話會議上，我們談到了注重預算的中低收入消費者減少去餐廳和便利商店的次數。雖然第二季的情況仍然如此，但我們現在看到同一消費者群體放棄批量購買單份杯，而更喜歡購買較小的包裝尺寸，作為延長工資的一種方式。

This trading-down negatively impacted our single-serve sales volume in the second quarter. But despite the drop in net sales, gross profit in our beverage solutions segment increased 13% due to improved gross profit margins in both our coffee and tea and flavors, extracts and ingredients platforms. Adjusted EBITDA from beverage solutions for the quarter was $13.2 million, a 13.6% increase compared to our prior year second quarter, and our adjusted EBITDA margin in beverage solutions was up 197 basis points.

這種降價對我們第二季的單份銷售產生了負面影響。儘管淨銷售額下降，但由於我們的咖啡和茶以及香料、萃取物和配料平台的毛利率提高，我們的飲料解決方案部門的毛利增加了 13%。本季飲料解決方案調整後 EBITDA 為 1,320 萬美元，比去年第二季成長 13.6%，飲料解決方案調整後 EBITDA 利潤率成長 197 個基點。

In our sustainable sourcing & traceability segment, sales, net of intersegment revenues, were $45.1 million during the second quarter of 2024; an increase of 29% compared to the second quarter of 2023, primarily due to increased sales volumes. Adjusted EBITDA from our SS&T segment for the quarter was approximately $400,000 compared to an adjusted EBITDA loss of approximately $400,000 in the second quarter of 2023.

在我們的永續採購和可追溯性部門，2024 年第二季的銷售額（扣除部門間收入）為 4,510 萬美元；與 2023 年第二季相比成長 29%，主要是由於銷量增加。本季 SS&T 部門調整後 EBITDA 約為 40 萬美元，而 2023 年第二季調整後 EBITDA 虧損約為 40 萬美元。

With the launch of our Conway extract and RTD facility, we took several actions intended to optimize our manufacturing footprint to reduce cost. During the quarter, we consolidated our Concord, North Carolina core coffee operations into a single facility, and we announced that during the third quarter, we'll be consolidating our extract, can and bottling operation in Richmond, California into our new Conway extract and RTD facility. In addition to [these facility] consolidations, we carried out a reduction in force impacting SG&A functions across all departments. We estimate annualized savings from these initiatives to be approximately $10 million, and we expect to begin fully realizing these savings on a run rate basis in the first quarter of 2025. Moving on to capital expenditures.

隨著康威萃取物和 RTD 工廠的啟動，我們採取了多項行動，旨在優化我們的製造足跡，以降低成本。在本季度，我們將北卡羅來納州康科德的核心咖啡業務整合為一個工廠，我們宣布，在第三季度，我們將把位於加州里士滿的提取物、罐頭和裝瓶業務合併到新的康威提取物和裝瓶業務中。除了[這些設施]整合之外，我們還減少了影響所有部門 SG&A 職能的人員。我們估計這些措施的年節省金額約為 1000 萬美元，我們預計將在 2025 年第一季開始按運行率完全實現這些節省。轉向資本支出。

During the second quarter, we deployed approximately $36 million of CapEx, primarily related to our Conway extract and RTD facility. Through the end of the second quarter, we spent approximately $245 million of the anticipated $315 million on the Conway facility. We expect to spend approximately $55 million in the back half of fiscal 2024 and the balance in the first half of 2025. As I mentioned last quarter, as our Conway CapEx intensity abates and our Conway sales intensity ramps in the first half of 2025, we expect to be free cash flow positive in the second half of 2025. At quarter end, we had approximately $140 million of consolidated unrestricted cash and undrawn revolving credit commitments.

第二季度，我們部署了約 3,600 萬美元的資本支出，主要與我們的康威萃取物和 RTD 設施相關。截至第二季末，我們在康威工廠的預計支出為 3.15 億美元，其中大約支出了 2.45 億美元。我們預計 2024 財年下半年支出約 5,500 萬美元，2025 財年上半年支出餘額。正如我上季度提到的，隨著 2025 年上半年我們的康威資本支出強度減弱和康威銷售強度上升，我們預計 2025 年下半年自由現金流將為正值。截至季末，我們擁有約 1.4 億美元的合併無限制現金和未提取的循環信貸承諾。

Our consolidated net secured leverage ratio as of June 30, 2024, was 6.1x based on an LTM-adjusted EBITDA. As we said all along, we expect leverage to increase and remain elevated during the build-out of the Conway facility, and these leverage levels are in line with our expectations. Turning to our outlook for 2024 and 2025. We are narrowing our 2024 consolidated adjusted EBITDA guidance to a range of between $60 million and $65 million from the previously announced range of $60 million to $80 million to account for the softness we're experiencing in our single-serve cup platform and our current expectations regarding the sales ramp of customers at our Conway extract and RTD facility. While we expect our 2024 consolidated adjusted EBITDA to come in at the lower end of our original range, we are reaffirming our consolidated adjusted EBITDA for fiscal 2025 of $115 million.

截至 2024 年 6 月 30 日，我們的綜合淨擔保槓桿率為 6.1 倍（基於 LTM 調整後的 EBITDA）。正如我們一直以來所說，我們預計在康威設施擴建期間槓桿率將增加並保持在較高水平，這些槓桿水平符合我們的預期。轉向我們對 2024 年和 2025 年的展望。我們將2024 年綜合調整後EBITDA 指導範圍從先前宣布的6000 萬美元至8000 萬美元範圍縮小至6000 萬美元至6500 萬美元之間，以考慮到我們在單一服務杯平台中遇到的疲軟狀況以及我們目前的期望關於我們康威萃取物和 RTD 工廠的客戶銷售成長。雖然我們預計 2024 年合併調整後 EBITDA 將處於原始範圍的下限，但我們重申 2025 財年合併調整後 EBITDA 為 1.15 億美元。

With that, we'll turn the call back over to the operator for questions.

這樣，我們會將電話轉回給接線生詢問問題。

(Operator Instructions) Todd Brooks, The Benchmark Company.

（操作員說明）Todd Brooks，Benchmark 公司。

Scott, wanted to lead off with questions on two paces within the Conway facility. So it sounds like the commercialization pace as far as lines coming on is tracking to what your expectation was. Is the customer acceptance pace tracking as expected? And then on top of that, if we could talk about the contracting pace. There was a lot of positive news that you kind of flew through at the start. But it sounds like single-serve can, good news there, multi-serve bottle with the addition of the second line and then hadn't known the fact that single-serve bottle was kind of a single-tenant type of structure. So any color you could give us would be helpful.

史考特想先在康威設施內提出兩步問題。因此，就即將上線的線路而言，聽起來商業化的步伐正在符合您的預期。客戶接受進度是否符合預期？除此之外，我們能否談談收縮的步伐。一開始你就經歷了很多正面的消息。但這聽起來像是單份罐，好消息是，多份瓶加上第二條線，然後不知道單份瓶是單一租戶類型的結構。所以你能給我們的任何顏色都會有幫助。

Sure. We've got a range of issues with people that we're working through across the board. So commercialization, to some extent, is dependent not only upon our teams, but the customers. So you've got a lot of companies doing a lot of different things right now. They are reformulating drinks, they are creating new drinks and they're trying to get -- they've been -- they have the same group has to come in and live in Conway for a few weeks.

當然。我們與員工之間存在一系列問題，我們正在全面解決這些問題。所以商業化在某種程度上不僅取決於我們的團隊，還取決於客戶。所以現在有很多公司在做很多不同的事情。他們正在重新配製飲料，他們正在創造新的飲料，他們正在努力讓同一群人來到康威並生活幾週。

So I would say, on the whole, we are right where we need to be on that front. I would -- on the contracting side, we're not trying to get into the habit of announcing every time we do or don't get a contract, but we had some major surprising positive news that came into the house. Whether we get it all squared away to the final contract, I would imagine that we do, but at this juncture, we're trying not to make any assumptions around that front.

所以我想說，總的來說，我們在這方面處於我們需要的位置。我會——在合約方面，我們並不想養成每次簽約或未簽訂合約時都要宣布的習慣，但我們收到了一些令人驚訝的重大積極消息。無論我們是否把一切都擺在最終合約上，我想我們會這樣做，但在這個時刻，我們試圖不圍繞這方面做出任何假設。

But I think that what we're experiencing in -- at a dollar level, estimated level, and the reason that we're not quite positive where we're going to come out in the latter part of the year and first part of next year is because as the RTD space has experienced softness, they are actually going through for the most part in working through contracts they have with other vendors and the slotting of when we start up and what we start up and what volume that we start up with, that's all very flexible. And because we have the flexibility to work with people as we are the plant that's just coming up, we are offering to help people and are working through that with our customers so that they have a smooth transition.

但我認為我們正在經歷的——在美元水平、估計水平上，以及我們對今年下半年和明年上半年的結果不太樂觀的原因今年是因為RTD 領域經歷了疲軟，他們實際上大部分時間都在處理與其他供應商簽訂的合同，以及我們啟動的時間、啟動的內容以及啟動的數量。由於我們是剛建成的工廠，因此可以靈活地與人們合作，因此我們願意為人們提供幫助，並與我們的客戶一起解決這個問題，以便他們能夠順利過渡。

That is why we gave you the number in the back half of the year of [25]. Whenever all of those gives and takes are settled through, we can see where our run rate is expected to be. We do know the annual volumes that people plan to run with us across all of our lines at this point in time. And that's how we think, as of what we can see today, we think that's a $125 million to $150 million EBITDA business when they are all in. We are not pressuring them to come in. We are being good partners and letting them walk in at their pace. And I think it's been highly appreciated across the industry by people that are signing up to help us.

這就是為什麼我們給你今年下半年的數字[25]。每當所有這些付出和索取都得到解決時，我們就可以看到我們的運行率預計會達到什麼水平。我們確實知道目前人們計劃與我們一起在所有線路上運行的年銷量。這就是我們的想法，就我們今天所看到的情況而言，我們認為當他們全部投入時，這將是一項 1.25 億至 1.5 億美元的 EBITDA 業務。我們並沒有強迫他們進來。我們是很好的合作夥伴，讓他們按照自己的步調前進。我認為整個行業都受到了簽約幫助我們的人們的高度讚賞。

That's great. And then a second follow-up and I'll jump back in queue. We know about the three lines that are commercializing this year. Can you walk through what additional lines are slated to come on over the course of '25 in Conway as you see it now? And then just kind of remind us of the timing for the earliest that the Select Milk lines down in Texas could come on as well?

那太棒了。然後進行第二次跟進，我將重新排隊。我們了解今年商業化的三條生產線。您能否詳細介紹一下您現在所看到的 25 年期間康威將新增哪些線路？然後提醒我們德州的 Select Milk 生產線最早開通的時間？

Right. We expect over the course of '25, we'll have a small can line. We will have bulk fill lines coming on, and we will also have bag in box. So those are the three things that we expect to turn on in 2025 and answer the first part of your question. Where we are with Select right now, frankly, everybody is so busy that we didn't want to push.

正確的。我們預計在 25 年期間，我們將擁有一條小型罐頭生產線。我們將開通散裝填充線，我們還將推出盒中袋。這些是我們預計在 2025 年開啟的三件事，並回答您問題的第一部分。坦白說，我們現在選擇的情況是，每個人都很忙，我們不想推動。

We had -- we need to get a certain threshold of the line sold out before we turn to the banks that are going to finance the equipment side of the JV. And although we were close, we weren't quite at a number that easily made that possible and so we've delayed it a quarter while we try to, #1, line that up; and #2, get the flexibility in the banking group for the joint venture to be able to move forward with that without having to make trade-offs of what we're doing back home in Conway.

在我們向將為合資企業的設備方面提供資金的銀行尋求幫助之前，我們需要將產品線銷售到一定的門檻。雖然我們很接近，但我們還沒有達到一個可以輕鬆實現這一目標的數字，因此我們將其推遲了四分之一，同時我們試圖，#1，將其排列起來；第二，獲得銀行集團的彈性，使合資企業能夠向前推進，而不必對我們在康威的家鄉所做的事情進行權衡。

Matt Smith, Stifel.

馬特史密斯，史蒂菲爾。

I wanted to come back to the question around the implied run rate in 2025. You gave some nice color there. And I want to understand how the additional lines that are coming online in 2025, you mentioned the small can, bag in box, and bulk fill, how you've contemplated the capacity for those lines implied in the EBITDA run rate?

我想回到關於 2025 年隱含運行率的問題。你在那裡給了一些漂亮的顏色。我想了解 2025 年上線的額外生產線，您提到的小罐裝、盒中袋和散裝填充，您如何考慮 EBITDA 運行率中隱含的這些生產線的產能？

Yes. At this point, we don't have any of those in our EBITDA run rate for the moment.

是的。目前，我們的 EBITDA 運行率中暫時還沒有這些內容。

Okay. And if we could talk about the single-serve pressure you're seeing. You talked about retailers trading down to smaller pack sizes. We've seen that across other categories as well. Are you filling that business? Or is that contract volume shifting to other vendors that are already set up for the small pack size? And -- or is this really just a matter of customers purchasing less volume over time, but you're still providing the retailer with the smaller pack sizes?

好的。如果我們可以談談您所看到的單發壓力。您談到零售商減少包裝尺寸。我們在其他類別中也看到了這一點。你正在填補這項業務嗎？或者合約量是否正在轉移到已經為小包裝尺寸做好準備的其他供應商？而且——或者這實際上只是客戶隨著時間的推移購買量減少的問題，但您仍然向零售商提供較小的包裝尺寸？

Yes. It's the latter. Typically, and I can't tell you how the whole industry works, I just know how we work with our retailers, we tend to do a very broad spectrum of packaging sizes for them. So we actually -- if the consumer is moving from a 100 count to a 50 count to a 25 count to a 10, we will do whatever the customer volume pulls. So we do see, as we serve the distribution centers precisely and exactly, what the volume shift is from the consumer through the store, through the DC to our ability to make any product that they're pulling through at the shelf. So we know that we know that we're right on that.

是的。是後者。通常，我無法告訴您整個行業是如何運作的，我只知道我們如何與零售商合作，我們傾向於為他們提供非常廣泛的包裝尺寸。所以我們實際上 - 如果消費者從 100 計數到 50 計數，再到 25 計數，再到 10 計數，我們將根據客戶數量採取任何措施。因此，當我們精確地為配送中心提供服務時，我們確實看到了從消費者到商店、配送中心到我們生產他們在貨架上拉出的任何產品的能力的變化。所以我們知道我們在這一點上是正確的。

And maybe if I could follow up with one more question. The narrowing of the guidance range, the second half comes down, call it, $15 million, $20 million relative to your previous expectations. You talked about the pressure in single-serve as well as some commercialization activity in Conway. Any direction you can provide on the magnitude of each one of those? And I'll leave it there.

也許我可以再問一個問題。指引範圍的縮小，下半年下降，相對於您先前的預期，1500萬美元、2000萬美元。您談到了單份服務的壓力以及康威的一些商業化活動。您能就其中每一項的規模提供任何指導嗎？我會把它留在那裡。

Sure. It's about 80-20, cups and commercialization start-up.

當然。大約是80-20，杯子和商業化啟動。

Sarang Vora, TAG.

薩朗沃拉，TAG。

So first, it was great to tour the facility earlier in the summer, gave a lot of confidence about all these production plants and lines that you are starting. My question is more about next year's production. So the small can, the bag in the box, those production lines, can you share the timing of those openings? Like how are you in terms of like ordering the equipment? Is it more like a second half '25 story or more like a first half? Just to make sure, because I know you said it's not in the guidance, so just trying to understand it better.

首先，很高興在夏季早些時候參觀了該工廠，這讓您對您正在啟動的所有這些生產工廠和生產線充滿信心。我的問題比較是關於明年的產量。那麼小罐頭、盒子裡的袋子、那些生產線，可以分享這些開放的時間嗎？例如您訂購設備的情況如何？它更像是 25 年故事的後半部分還是更像前半部分？只是為了確定，因為我知道你說它不在指南中，所以只是想更好地理解它。

Sure. I think it's really twofold. Number one is, as we free up the product development workforce that is currently trying to launch 150 individual SKUs in Conway right now, as we work through this period of busyness, then we will turn to customers that are asking us for bulk fill for hot fill bottle lines, for bag in a box. We literally are just stacked up. It's the same people in commercialization and product development that have to do the work.

當然。我認為這確實是雙重的。第一是，當我們釋放出目前正在康威嘗試推出 150 個單獨 SKU 的產品開發人員時，當我們度過這段繁忙時期時，我們將轉向那些要求我們散裝熱灌裝的客戶。 ，用於盒裝袋。我們實際上只是堆積在一起。從事商業化和產品開發的人員必須承擔這項工作。

And so we don't feel any pressure to further pressure our balance sheet to turn lines on until we've gotten the product development group freed up to actually make the products and get them started up. We are going to work through that over the course of the year. It's probably by the fall, a back half of the year impact, and it's why we didn't put anything in our guidance for it right now.

因此，在我們讓產品開發團隊騰出時間來實際製造產品並啟動產品之前，我們不會感到任何進一步向我們的資產負債表施加壓力以啟動生產線的壓力。我們將在一年內解決這個問題。這可能是在今年秋天、下半年的影響，這就是為什麼我們現在沒有在我們的指導中加入任何內容。

That's helpful. And margins, especially gross margins were much stronger back-to-back for second quarter. So curious if you can share some color on how it looks in the back half, Is, like, 19.5%, 20% range a decent range as you look at the back half? Or with all these changes happening, we need to be more careful in expansion ahead?

這很有幫助。第二季的利潤率，尤其是毛利率連續強勁得多。很好奇你是否可以分享一些關於後半部分的顏色，當你看後半部分時，19.5%、20% 的範圍是一個不錯的範圍嗎？或者隨著所有這些變化的發生，我們在未來的擴張中需要更加謹慎？

This is Chris. I think that those margins should hold. I think what you're seeing is a great job with operational efficiencies. I think that our ability to drive down our COGS as we optimize our supply chain is driving real benefits through our P&L. And those things are sustainable. So we'd expect to see those margins hold as we get through the back half of the year.

這是克里斯。我認為這些利潤應該保持不變。我認為您所看到的工作效率很高。我認為，我們在優化供應鏈時降低銷貨成本的能力正在透過我們的損益表帶來真正的效益。這些事情是可持續的。因此，我們預計下半年這些利潤率將保持不變。

Eric Des Lauriers, Craig-Hallum Capital Group.

艾瑞克‧德斯‧勞裡爾斯 (Eric Des Lauriers)，克雷格-哈勒姆資本集團。

First one for me, on the timing of facility consolidations. I understood the annualized savings won't be fully recognized until first part of 2025. But in terms of the actual sort of transition or consolidation, how should we think about timing there?

對我來說，第一個問題是關於設施整合的時間。據我所知，年化節省要到 2025 年上半年才能完全確認。但就實際的轉型或整合而言，我們該如何考慮時機？

We started one of the consolidation of the core coffee facility in Concord, North Carolina, that took place actually towards kind of the end of the second quarter. The consolidation of the Richmond, California can and bottling, that's going to take place kind of in the third quarter and should be complete by the end of the third quarter.

我們開始了對北卡羅來納州康科德市核心咖啡設施的整合，實際上是在第二季末進行的。加州里士滿罐頭和裝瓶的整合將在第三季進行，並應在第三季末完成。

Okay. Great. And then those savings, should we expect to see those more on the OpEx side or cost of goods?

好的。偉大的。然後，我們是否應該期望在營運支出或商品成本方面看到更多節省？

You'll see more on the OpEx side. You'll see some benefit on the cost of goods side, but mostly on the OpEx.

您將在營運支出方面看到更多內容。您會在商品成本方面看到一些好處，但主要是在營運支出方面。

Makes sense. And then demand for Conway, obviously, quite robust here, kind of getting ahead of ourselves. Obviously, you guys have done a great job kind of filling those lines, commercializing that facility. But given the sort of consolidation of these other facilities, I'm kind of just wondering what sort of capacity may be left in Conway for potential additional lines or overall expansion. I'm just kind of wondering, as this is all coming together, sort of how much capacity do you have left in that facility itself?

有道理。然後，對康威的需求顯然非常強勁，有點超前了。顯然，你們在填補這些線路、將該設施商業化方面做得非常出色。但考慮到這些其他設施的整合，我有點想知道康威可能會留下什麼樣的容量用於潛在的額外線路或整體擴張。我只是想知道，當這一切都匯集在一起時，該設施本身還剩下多少容量？

Well, we have -- there's excess capacity in the existing lines that we put in -- that we're starting up now if you think about the can line, the glass line and then the multi-serve bottle line. So there's capacity there to continue to grow in those. And then that also feeds itself into kind of the addition of a smaller can line, we can add probably -- I think the total is around six different kind of lines in the footprint that is Conway from a space constraint perspective. So we have the ability to continue to grow in that facility as demand continues to grow. Does that answer your question?

嗯，我們現有的生產線產能過剩，如果您考慮罐頭生產線、玻璃生產線和多份瓶生產線，我們現在就開始啟動。因此，這些領域有能力繼續成長。然後，這也會導致增加一條較小的罐頭生產線，我們可能可以添加——我認為從空間限制的角度來看，康威的佔地面積大約有六種不同類型的生產線。因此，隨著需求的不斷增長，我們有能力繼續擴大該設施。這能回答你的問題嗎？

I'm showing no further questions at this time and would now like to turn it back to Scott Ford for closing remarks.

我目前沒有提出任何進一步的問題，現在想將其轉回斯科特·福特進行結束語。

Thank you very much. Well, we appreciate everybody's interest. It's been a wild week in the market. I know everybody is busy. But we were thrilled with the quarter. Operationally, we've been working really hard in improving our metrics, we did. We beat our -- I think the median estimate for us by about 14%. We've got a lot of momentum moving into the back half of the year. We have a ton of new customers that are starting to do new lines of business with us even now in the third quarter. And we are excited about where we are.

非常感謝。嗯，我們感謝大家的興趣。這是市場瘋狂的一周。我知道大家都很忙。但我們對這個季度感到興奮。在營運方面，我們一直在努力改進我們的指標，而我們確實做到了。我認為我們的預測中位數超出了 14% 左右。進入今年下半年，我們有很大的動力。即使在第三季度，我們仍有大量新客戶開始與我們開展新業務。我們對我們所處的位置感到興奮。

I think we are landing the brands that we wanted to land in the Conway facility. And I think you are going to see, over the next 12 months, an amazing development in that facility. And I just want to end this call with this is really a call to celebrate the people that have built that. And I appreciate what they've done, I'm amazed at what they've done.

我認為我們正在將我們想要在康威工廠落地的品牌落地。我認為您將在接下來的 12 個月內看到該設施取得驚人的發展。我只想以此結束這次電話會議，這其實是向創造這項成果的人們致敬的電話會議。我很欣賞他們所做的事情，我對他們所做的事情感到驚訝。

We've got to execute now and everybody on the team knows it and they are doing it, and I'm looking forward to seeing everybody in the third quarter where we will be in a much better place at that juncture, both contractually to keep -- to post people on where we are and to give any -- really any kind of variance guidance we've got into the end of the year and the first part of next year.

我們現在必須執行，團隊中的每個人都知道這一點，他們正在這樣做，我期待在第三季度看到每個人，在那個時刻我們將處於一個更好的位置，雙方都在合約上保持- 向人們發布我們的情況，並提供我們在今年年底和明年上半年得到的任何- 實際上任何類型的差異指導。

So thank you very much for your support. We continue to be head down delivering on a 5-year project that we're about midway through, and I think we are on time and on schedule, and I am super pleased. I hope that -- if you've got any questions, please feel free to follow back up with us, and have a good evening. Thanks, guys.

非常感謝您的支持。我們繼續埋頭實施一個為期 5 年的項目，該項目即將進行到一半，我認為我們正在按時完成，我非常高興。我希望——如果您有任何疑問，請隨時與我們聯繫，祝您度過一個美好的夜晚。謝謝，夥計們。

Thank you. This does conclude the program, and you may now disconnect.

謝謝。這確實結束了程序，您現在可以斷開連接。