Westrock Coffee’s losses narrow after strong first quarter sales

Westrock Coffee's Beverage Solutions segment contributed $148.4m for the first quarter of 2022 | Photo credit: Westrock Coffee

Westrock Coffee has credited improved operational efficiencies within its beverage division for steering the company to a 20% sales rise in the first quarter of 2022, despite inflation pressures and costs arising from Covid-19 restarts hindering performance.

Reporting its financial results for the first quarter to 31 March 2022, Westrock Coffee posted consolidated net sales of $186.4m, compared to $155.3m for the same period in 2021, and gross profit of $38.4m. 

Following challenges in restarting business operations following the spread of the Omicron Covid-19 variant in the US, Westrock Coffee reported net loss of $4.7m for the first quarter, compared to a net loss of $6.1m for the first quarter of 2021.

Adjusted EBITDA for the period was $11.4m, representing Adjusted EBITDA growth of 37%. 

Westrock Coffee's Beverage Solutions segment contributed $148.4m and $10.4m of Adjusted EBITDA for the first quarter of 2022, representing year-over-year sales growth of 17%, and year-over-year Adjusted EBITDA growth of 28%. 

"We are pleased with the strong start to the year, particularly given the numerous factors currently impacting the U.S. consumer, increased inflation, and the volume impacts of Covid restarts,” said Scott T. Ford, CEO, Westrock Coffee. 

Westrock Coffee’s new plant in Malaysia, its first manufacturing and packaging facility outside of the US, commenced production in April and is on track to ship its first product in June 2022. 

In April, the coffee roaster and tea distributor announced it will become a public company via a merger with Special Purpose Acquisition Company (SPAC), Riverview Acquisition Corp, worth $1.1bn. Alongside its first quarter results, Westrock Coffee announced it is upsizing the credit facility it will enter as part of the transaction from $300m to $350m.