Westrock Coffee Co

Results of Operations

Comparison of the Three Months Ended June 30, 2025 and 2024

The following table sets forth our results of operations expressed as dollars and as a percentage of total revenues for the periods indicated:

Net Sales

Net Sales from our Beverage Solutions segment were $208.8 million for the three months ended June 30, 2025, increasing 27.9% compared to $163.3 million for the three months ended June 30,2024. The increase was primarily due to a $38.9 million increase in the sale of coffee and tea products, driven by a 21.1% increase in single serve cup volumes and a 13.7% increase in core roast and ground coffee volumes, and the year over year growth in coffee commodity prices, which are passed through to our customers. In addition, sales of flavors, extracts & ingredients products increased $6.6 million, driven by the ramp up in operations of our Conway, Arkansas extract and ready-to-drink manufacturing facility (the “Conway Facility”).

Net Sales from our SS&T segment, net of intersegment revenues, were $72.0 million for the three months ended June 30, 2025, increasing 59.6% compared to $45.1 million for the three months ended June 30,2024. The increase is driven by an increase in the average sales price per pound, which increased 50.1% for the three months ended June 30, 2025, compared to the three months ended June 30,2024. The increase in the average sales price per pound is directly correlated to the global commodities price. SS&T sales volume increased 10.3% for the three months ended June 30, 2025 compared to the three months ended June 30, 2024.

Costs of Sales

In our Beverage Solutions segment, costs of sales increased $47.9 million to $174.5 million for the three months ended June 30, 2025, compared to the three months ended June 30, 2024. The increase in costs of sales was primarily driven by an increase in sales volumes and an increase in the coffee commodity prices for the three months ended June 30, 2025, compared to the three months ended June 30, 2024.

In our SS&T segment, costs of sales increased $24.6 million to $64.9 million for the three months ended June 30, 2025, compared to the three months ended June 30,2024. This increase is primarily due to an increase in green coffee costs driven by an increase in underlying commodities pricings. Costs of sales in our SS&T segment for the three months ended June 30, 2025 included $1.4 million of net unrealized gains on forward sales and purchase contracts and mark-to-market adjustments on green coffee inventory compared to $1.5 million of net unrealized gains for the three months ended June 30, 2024.

Selling, General and Administrative Expense

Total selling, general and administrative expenses in our Beverage Solutions segment increased $2.9 million to $51.7 million for the three months ended June 30, 2025, compared to the three months ended June 30,2024. The increase is primarily due to an increase in operating costs associated with the Conway Facility. In our SS&T segment, selling, general and administrative costs were relatively unchanged compared to the three months ended June 30, 2024.

Transaction, Restructuring and Integration Expense

Transaction, restructuring and integration expenses for the three months ended June 30, 2025 were $2.5 million, approximately $1.9 million of which related to severance costs and $0.4 million of which related to fees related to the establishment of our accounts receivable factoring agreement. During the three months ended June 30, 2024, we incurred $4.4 million of transaction, restructuring and integration expenses, approximately $4.1 million of which related to severance and other employee termination and benefit costs associated with the elimination of various positions as part of cost reduction objectives.

Interest Expense

Interest expense for the three months ended June 30, 2025 was $13.1 million compared to $7.5 million for the three months ended June 30,2024. Interest expense associated with our term loan and delayed draw term loan decreased $0.7 million due to decreased outstanding balances, while interest on our revolving credit facility increased $2.5 million, primarily due to higher outstanding borrowings. During the three months ended June 30, 2025, the Company capitalized approximately $0.4 million of interest costs associated with the build-out of our Conway Facility, compared to $4.3 million of such interest costs for the three months ended June 30, 2024.

Income Tax Expense (Benefit)

Income tax benefit for the three months ended June 30,2025 was $0.4 million, resulting in an effective tax rate of 1.7%. The effective tax rate for the current period differs from the federal statutory rate primarily due to an increase in the valuation allowance against domestic deferred tax assets. Income tax benefit for the three months ended June 30, 2024 was $4.6 million, resulting in an effective tax rate of 20.7%.

Comparison of the Six Months Ended June 30, 2025 and 2024

The following table sets forth our results of operations expressed as dollars and as a percentage of total revenues for the periods indicated:

Net Sales

Net Sales from our Beverage Solutions segment were $372.9 million for the six months ended June 30, 2025, increasing 16.1% compared to $321.3 million for the six months ended June 30,2024. The increase was primarily due to a $40.8 million increase in the sale of coffee and tea products, driven by a 10.7% increase in roast and ground coffee volumes and the year over year growth in coffee commodity prices, which are passed through to our customers. In addition, sales

of flavors, extracts & ingredients products increased $11.4 million, driven by the ramp up in operations of the Conway Facility.

Net Sales from our SS&T segment, net of intersegment revenues, were $121.8 million for the six months ended June 30, 2025, increasing 53.0% compared to $79.6 million for the six months ended June 30,2024. The increase is primarily driven by an increase in the average sales price per pound, which increased 52.3% for the six months ended June 30, 2025, compared to the six months ended June 30,2024. The increase in the average sales price per pound is directly correlated to the global commodities price.

Costs of Sales

In our Beverage Solutions segment, costs of sales increased to $315.9 million for the six months ended June 30, 2025, from $251.7 million for the six months ended June 30, 2024. The increase in costs of sales was primarily driven by an increase in the sales volumes, and the year over year growth in coffee commodity prices for the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

In our SS&T segment, costs of sales increased $37.8 million to $108.3 million for the six months ended June 30, 2025 compared to the six months ended June 30,2024. This increase is primarily due to an increase in coffee commodity prices. Costs of sales in our SS&T segment for the six months ended June 30, 2025 included $3.5 million of net unrealized gains on forward sales and purchase contracts and mark-to-market adjustments on green coffee inventory compared to $3.2 million of net unrealized gains for the six months ended June 30, 2024.

Selling, General and Administrative Expense

Total selling, general and administrative expenses in our Beverage Solutions segment and our SS&T segment were relatively unchanged compared to the six months ended June 30, 2024.

Transaction, Restructuring and Integration Expense

Transaction, restructuring and integration expenses for the six months ended June 30, 2025 were $4.3 million, approximately $2.4 million of which related to severance and other employee termination and benefit costs associated with the elimination of various positions as part of cost reduction objectives, $0.8 million of plant closure costs and $0.4 million of which related to fees related to the establishment of our accounts receivable factoring agreement. During the six months ended June 30, 2024, we incurred $7.4 million of transaction, restructuring and integration expenses, approximately $4.1 million of which related to severance and other employee termination and benefit costs associated with the elimination of various positions as part of cost reduction objectives and $2.2 million of which related to the establishment of our at-the-market common stock offering program.

Interest Expense

Interest expense for the six months ended June 30, 2025 was $25.7 million compared to $15.0 million for the six months ended June 30,2024. Interest expense associated with our term loan and delayed draw term loan facilities decreased due to a decrease in outstanding balances, while interest on our revolving credit facility increased $5.3 million, primarily due to higher outstanding borrowings. During the six months ended June 30, 2025, the Company capitalized approximately $0.6 million of interest costs associated with the build-out of our Conway Facility, compared to $7.2 million of such interest costs for the six months ended June 30, 2024.

Income Tax Expense (Benefit)

Income tax expense for the six months ended June 30,2025 was $1.5 million, resulting in an effective tax rate of (3.1)%. The effective tax rate for the current period differs from the federal statutory rate primarily due to an increase in the valuation allowance against domestic deferred tax assets. Income tax expense for the six months ended June 30, 2024 was $1.2 million, resulting in an effective tax rate of (2.9)%.