Vita Coco Reports Mixed Q3 Results, Ups Guidance

Vita Coco Company, Inc. ( (COCO) ) has realeased its Q3 earnings. Here is a breakdown of the information Vita Coco Company, Inc. presented to its investors.

The Vita Coco Company, Inc. is a public benefit corporation and Certified B Corporation known for its leading coconut water brand in the U.S. and a range of better-for-you beverages. This company, co-founded in 2004, is committed to delivering healthy and nutritious products that are better for both consumers and the world.

In its latest quarterly earnings report, Vita Coco reported a 4% decrease in net sales to $133 million, though its flagship coconut water product saw an 8% growth in sales. Despite a drop in adjusted EBITDA, net income increased by $4 million to $19 million, demonstrating resilience in a challenging market environment.

Key financial metrics indicated mixed results, with year-to-date net sales remaining flat at $389 million. Gross profit decreased to $52 million due to lower volumes and higher transportation costs, but net income per diluted share rose to $0.32. The company attributed inventory challenges to the decline in sales but noted improvements by the end of the quarter. Encouragingly, Vita Coco raised its full-year guidance for net sales and adjusted EBITDA, reflecting confidence in future performance.

The company ended the quarter with $157 million in cash and no debt, highlighting a strong balance sheet. A share repurchase program was also initiated, with $12.8 million worth of shares repurchased to date. The company projects 2024 net sales between $505 million and $515 million, with continued growth in coconut water sales offsetting declines in other areas.

Looking ahead, Vita Coco’s management expresses optimism about the future, citing an improving inventory situation and ongoing robust growth in the coconut water category. The company anticipates accelerated growth in the coming months, bolstered by strong category dynamics and strategic adjustments.