The Arkansas-based coffee roaster has highlighted single serve pod sales as the main contributor to company revenue growth of 31% and states it is well-positioned to navigate inflationary pressures in the US
Westrock Coffee's Beverage Solutions segment achieved sales growth of 27%, reaching $170.9m | Photo credit: Westrock Coffee
Westrock Coffee is expecting strong performance in 2022 following sales growth of 31% in its second quarter, driven by a 57% volume increase in single serve pods.
Reporting its results for the three months ended 30 June 2022, the Arkansas-based coffee roaster said its Beverage Solutions segment achieved sales growth of 27%, reaching $170.9m.
Westrock Coffee’s total revenues reached $223.4m, with Sustainable Sourcing & Traceability segment sales of $52.5m driven by a 53% increase in average green coffee prices during the period.
The company’s losses fell 4% to $5.8m, compared to $6.1m for the second quarter of 2021.
“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 normalise. 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," said Scott T. Ford, CEO, Westrock Coffee.
In April 2022, 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. The company expects to complete the merger by the end of August 2022.
Westrock is one of the largest commercial coffee roasters in the US. In February 2020, Westrock Coffee acquired S&D Coffee & Tea for $405m, giving the two US coffee roasters a combined capacity to package nearly 100,000 tons of coffee annually.