Record-Breaking Second Quarter Results
Westrock Coffee delivered record-breaking second quarter results with strong customer demand, improved margin performance, and successful execution across its integrated platform. Adjusted EBITDA for Beverage Solutions and SS&T was $23 million, up 100% from the first quarter of the year and approximately 70% from the same quarter last year.
Significant Growth in Net Sales
Consolidated net sales increased by 34.8% compared to the second quarter of 2024. Beverage Solutions segment saw net sales increase by 27.9% year-over-year, driven by a 13.7% volume increase in core roast and ground coffee, a 21.1% volume increase in single-serve cups, and a 14% increase in flavors, extracts, and ingredients.
SS&T Segment Performance
The Sustainable Sourcing & Traceability (SS&T) segment posted another impressive quarter with net sales growing 60% over the second quarter of 2024, driven by volume growth, margin capture, and higher coffee prices.
Strategic Investments and Facility Expansion
Westrock Coffee's new single-serve cup plant and the extract and RTD plant in Conway, Arkansas, saw significant sales increases. The new extract and RTD facility experienced a fivefold increase in sales from the main production line and is on track for a fourfold increase in the third quarter.
Strong Cash and Liquidity Position
The company had approximately $72 million in unrestricted cash and available liquidity under its $200 million revolving credit facility as of quarter end, maintaining leverage metrics within expectations.