NASDAQ$COCO

The Vita Coco Company Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Net sales and net income increased, driven by improved gross profit and lower transportation costs. Company raised full year guidance.

The Vita Coco Company reported a 2% increase in net sales to $112 million for Q1 2024. Net income increased to $14 million, and Non-GAAP Adjusted EBITDA increased to $21 million. The company raised its full year guidance, expecting net revenue between $500-$510 million and Adjusted EBITDA between $76-$82 million.

  • Net sales grew 2% to $112 million, with Vita Coco Coconut Water net sales growth of 1%.
  • Gross profit was $47 million, or 42% of net sales, an increase of $14 million compared to 31% of net sales.
  • Net income was $14 million, or $0.24 per diluted share, compared to a net income of $7 million, or $0.12 per diluted share.
  • Non-GAAP Adjusted EBITDA was $21 million compared to $9 million, up $12 million due to improvements in gross profit partially offset by increased SG&A.

Headline financials

Total Revenue

$112M

Previous: $110M+1.8%
EPS

$0.24

Previous: $0.12+100.0%
Non-GAAP Adjusted EBITDA

$21.2M

No prior period
Gross Margin

42.0%

Previous: 30.7%+36.8%
Capital Expenditures

-$124K

Previous: -$454K+72.7%
Free Cash Flow

$14.1M

Previous: $6.25M+125.8%
Net Income

$14.2M

Previous: $6.71M+112.3%
Operating Income

$19M

Previous: $6.7M+182.8%
Gross Profit

$47.2M

Previous: $33.7M+40.2%
Cash & Equivalents

$123M

Previous: $29.1M+322.9%
Total Assets

$289M

Previous: $208M+39.2%
Stock-Based Comp

$2.11M

Previous: $2.16M-2.5%

Revenue & EPS history

Vita Coco · Revenue · Quarterly

$112M

Q1 2024+1.8%vs Q1 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

The Company is raising its full year guidance based on year to date performance and current positive outlook:

Tailwinds

  • Expect 2024 net sales to be between $500 million and $510 million, with projected Vita Coco Coconut Water and private label coconut water volume growth, being offset by expected decreases in private label coconut oil business and price/mix effects.
  • Full year gross margin expected to be between 37% and 39%, with recent increases on certain ocean freight routes adversely affecting gross margins beginning in the second quarter.
  • SG&A expenses expected to be approximately flat to slightly up in dollars versus 2023.
  • Forecasting Adjusted EBITDA in the range of $76 million to $82 million.

Headwinds

  • Uncertainty and instability of the current operating environment, global economies, and geopolitical landscape could affect this outlook and our future results.
  • Recent increases on certain ocean freight routes adversely affecting gross margins beginning in the second quarter.
  • The impact of freight costs is expected to be most severe in the second quarter and moderate each subsequent quarter.

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 2024

Historical avgQ1 2024

+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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