NASDAQ$COCO

The Vita Coco Company Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported first quarter results with net sales increasing by 14% and gross margin improving to 31%.

The Vita Coco Company reported strong first-quarter results, with net sales up 14% to $110 million, driven by a 17% increase in Vita Coco Coconut Water sales. Gross margin improved to 30.7%, and net income attributable to shareholders was $7 million, or $0.12 per diluted share. The company is raising its full-year net sales growth and Adjusted EBITDA guidance.

  • Net sales grew 14% to $110 million, driven by 17% growth in Vita Coco Coconut Water.
  • Vita Coco Coconut Water case equivalent volumes increased 15%.
  • Gross profit increased to $34 million, representing 30.7% of net sales, a 77% increase from the prior year.
  • Net income attributable to shareholders was $7 million, or $0.12 per diluted share, compared to $2 million, or $0.04 per diluted share in the prior year.

Headline financials

Total Revenue

$110M

Previous: $96.4M+13.8%
EPS (adj)

$0.12

Previous: $0.04+200.0%
Gross Margin

30.7%

Previous: 20.0%+53.5%
Capital Expenditures

-$454K

Previous: -$244K-86.1%
Free Cash Flow

$6.25M

Previous: $1.98M+215.2%
Net Income

$6.71M

Previous: $2.23M+201.1%
Operating Income

$6.7M

Previous: -$5.74M+216.8%
Gross Profit

$33.7M

Previous: $19.1M+76.6%
Cash & Equivalents

$29.1M

Previous: $18M+61.7%
Total Assets

$208M

Previous: $198M+4.7%
Stock-Based Comp

$2.16M

Previous: $2.39M-9.4%

Revenue & EPS history

Vita Coco · Revenue · Quarterly

$110M

Q1 2023+13.8%vs Q1 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

The Company is increasing its full year guidance with net sales growth of approximately 9-12% and Adjusted EBITDA in the range of $54 million to $59 million.

Tailwinds

  • Net sales growth of approximately 9-12% compared to fiscal year 2022.
  • Vita Coco Coconut Water expected to grow mid-teens.
  • Private Label net sales to be slightly positive.
  • Full year gross margin expected to be between 32% and 34%.
  • Sequential improvement expected in the next two quarters, due primarily to improvement in transportation costs, with contributions from price and mix.

Headwinds

  • Higher full year SG&A expenses to support long term growth initiatives.
  • Build commercial capabilities.
  • Cover increased employee costs.
  • Improve efficiencies with GAAP reported SG&A expenses growing a higher rate than net sales.
  • GAAP Net Income 2023 outlook is not provided due to the inherent difficulty in quantifying certain amounts due to a variety of factors including the unpredictability in the movement in foreign currency rates, as well as future charges or reversals outside of the normal course of business.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+2.3%

Avg return

Earnings day

+5.4%

Avg return

5 days after

+5.2%

Avg return

30 days after

52%

12 / 23 earnings

Positive

+29.8%

Q1 2026

Best reaction

-21.4%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+29.8%+30.1%+45.5%
Q4 2025-11.4%-5.1%-6.4%
Q3 2025+7.0%-3.4%+26.4%
Q1 2025+4.8%+10.3%+12.8%
Q4 2024-11.7%-14.1%-21.8%
Q3 2024-3.8%+12.4%+15.5%
Q2 2024+7.8%+6.8%+6.0%
Q1 2024+9.2%+8.8%+20.1%
Q4 2023+16.4%+16.7%+8.9%
Q3 2023+20.0%+23.8%+20.1%
Q2 2023-7.2%+4.5%+2.8%
Q1 2023+12.5%+14.1%+30.2%
Q4 2022+5.9%-0.5%+24.7%
Q3 2022+9.5%+17.1%+41.9%
Q2 2022+9.5%+30.9%+34.9%
Q1 2022-21.4%-11.3%-1.3%
Q2 2021-4.2%+2.9%+8.5%
Q4 2019-4.2%+2.9%+8.5%
Q4 2021-18.5%-21.9%-12.2%
Q3 2020-0.6%-3.5%-39.9%
Q1 2021-0.6%-3.5%-39.9%
Q4 2020-0.6%-3.5%-39.9%
Q3 2021+4.8%+9.9%-25.0%
Q2 2020
Q1 2020

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