Westrock Reports Q1 Results Ahead of Public Listing

Westrock Coffee of Little Rock this week said it narrowed its loss in the first quarter to $4.7 million from $6.1 million in the first quarter of 2021.

The company also reported a 20% year-over-year increase in net sales to $186.4 million from $155.3 million.

This is not the first time the not-yet-publicly traded Westrock has offered a glimpse at its books. Arkansas Business last month whispered about the release of its investor presentation, which offered insight into its annual revenue and profit.

In April, the company announced it would be going public through a deal with Riverview Acquisition Corp. of Memphis (Nasdaq: RVACU). The company said this week it expects to close on that deal at the end of the third quarter. It will retain its name and be listed on Nasdaq under the ticker symbol “WEST.” 

Westrock secured $300 million in financing from Wells Fargo to go public but increased that to $350 million in response to “strong demand from prospective lenders,” according to a news release.

The $350 million includes a $175 million term loan and a $175 million revolving loan. Upon closing, the funds will be used to refinance Westrock’s existing debt and fund its expansion plans. 

In December, the company announced a $10 million expansion into the former Kimberly-Clark plant in Conway. And, as planned, production at the company’s plant in Malaysia began in April. That plant is on track to ship its first product this month, Westrock reported.

“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,” Co-Founder and CEO Scott Ford said in the release. “Our team once again did an exceptional job of delivering on time and in full for our customers and that continues to open new opportunities for growth across the numerous industry groups and product types that we serve.” 

Westrock’s beverage solutions segment contributed $148.4 million in net sales during the first quarter, up from $127.3 million in the same quarter of last year. 

Sales for the sustainable sourcing & traceability segment grew to $38.1 million from $28.1 million, due to an approximately 20% increase in volume and by higher green coffee prices.