2H Themes Update & Q2 Earnings Season Wrap-Up Call
We recently made several changes to our position monitor following the Q2 earnings season and looking out towards the 2H of the year. Our Macro Team is calling for four more quarters of Quad 4, a favorable backdrop for the Consumer Staples sector. The competitive and inflationary environments are always changing and base effects have a tendency to reshuffle the winners and losers. We will review where we see inflection points in the Q2 results.
Our call will focus on the companies on our position monitor, their competitors, customers, and suppliers. We will highlight changes in the competitive dynamics, pricing plans, and price elasticity. We will also focus on industry topics including inventory, food inflation, labor, private label, and the health of the consumer.
We will provide a summary of the earnings results, where we project estimates will be revised lower or higher, and key inflection points.
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We will present our call at 2 PM ET today. CLICK HERE at the time of the event for the webcast and slides. |
Our themes for the call:
We hope you can join us.
Q2 results and the De-SPAC (RVAC)
Westrock Coffee reported Q2 sales growth of 31%, accelerating from 20% sequentially. Adjusted EBITDA was $13.3M, up from $11M in Q1. EBITDA margins were 6.0%, slightly below the 6.1% reported in Q1. The company’s guidance is to have EBITDA of $75M. Combined with seasonality that is weighted towards the back half of the year and new single serve cup volume that came online in June. The shareholders' meeting will be held on August 25 to vote on the de-SPAC. If approved, the company expects to begin trading under the symbol WEST on August 29. Not only is Westrock Coffee profitable, but the company's growth drivers in the next few years are highly visible. The company's 20% revenue CAGR and margin expansion are best in class for top and bottom-line growth. Management is taking the company public to finance the capacity build-out to pursue the growth opportunities it has in front of the company.
