Westrock Coffee schedules closing of merger with Riverview; reports second-quarter results
Source Westrock Coffee
Westrock Coffee Holdings, LLC reported financial results for the second quarter ending June 30, 2022.
Second-quarter 2022 highlights:
- Consolidated net sales were $223.4 million in the second quarter of 2022, an increase of $52.3 million, or 31%, from the second quarter of 2021.
- Net loss was $5.8 million in the second quarter of 2022, compared to a net loss of $6.1 million in the second quarter of 2021, a decrease of 4%.
- Adjusted EBITDA was $13.3 million in the second quarter of 2022, an increase of $2.1 million, or 19%, from the second quarter of 2021.
Scott T. Ford, CEO and co-founder, stated in the announcement: "In the second quarter, we continued to see year-over-year growth in our single serve cup and extract product lines which reinforces the mix shift we are seeing across our industry and allowed us to achieve first half 2022 Adjusted EBITDA growth of 27%, compared to the first half of 2021. The combination of our traditional seasonality trends which are back half of the year weighted, and the back half of the year ramp in our Adjusted EBITDA due to the startup of significant new single serve cup volume that came online in June, sets us up for a strong 2022.
“Like our customers, our results are not immune from the recent inflationary pressures experienced across the country, so we are pleased to see gasoline prices beginning to normalize. Overall, we remain very well-positioned to meet our customers’ expanding product needs in both the short and long term which should enable us to deliver corresponding strong financial results over time."
Quarterly results
Consolidated net sales for the second quarter of 2022 increased 31% to $223.4 million, compared to $171.1 million for the second quarter of 2021. Net loss for the second quarter of 2022 was $5.8 million, compared to a net loss of $6.1 million for the second quarter of 2021. Adjusted EBITDA for the second quarter of 2022 was $13.3 million, representing adjusted EBITDA growth of 19% when compared to the prior year second quarter.
Westrock Coffee's Beverage Solutions segment contributed $170.9 million of net sales and $12.5 million of adjusted EBITDA for the second quarter of 2022, compared to $134.4 million and $10.3 million, respectively, for the second quarter of 2021. This represents year-over-year net sales growth of 27%, driven by a 57% increase in single serve cup and a 20% increase in flavors, extracts and ingredients volumes, and year-over-year adjusted EBITDA growth of 21%.
Net sales in the company’s Sustainable Sourcing & Traceability (SS&T) segment, net of intersegment revenues, grew to $52.5 million in the second quarter of 2022, compared to $36.7 million in the second quarter of 2021, driven by a 53% increase in average green coffee prices during the second quarter of 2022 compared to the second quarter of 2021. Westrock Coffee's SS&T segment contributed $0.8 million and $0.9 million of adjusted EBITDA in the second quarter of 2022 and 2021, respectively.
Transaction update
Riverview Acquisition Corp. has scheduled a special meeting of its stockholders on August 25, 2022, to approve its previously announced business combination with Westrock Coffee. Subject to the receipt of Riverview stockholder approval and the satisfaction of the other closing conditions described in the transaction agreement between Riverview and Westrock Coffee, the company expects to complete the merger with Riverview on or about August 26, 2022.
