NASDAQ$COCO

The Vita Coco Company Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Net sales increased and gross margin improved.

The Vita Coco Company reported a strong second quarter with net sales increasing by 21% to $140 million and gross margin improving to 37%. Net income was $18 million, or $0.31 per diluted share. The company raised its full year net sales, gross margin and Adjusted EBITDA guidance.

  • Net sales grew by 21% to $140 million, driven by a 23% increase in Vita Coco Coconut Water sales.
  • Gross profit reached $51 million, representing 37% of net sales, a significant improvement from the previous year.
  • Net income was $18 million, or $0.31 per diluted share, compared to $1 million, or $0.02 per diluted share in the prior year.
  • Adjusted EBITDA was $24 million, a $17 million increase due to gross profit improvements, offset by increased SG&A spending.

Headline financials

Total Revenue

$140M

Previous: $115M+21.1%
EPS (adj)

$0.31

Previous: $0.02+1450.0%
Gross Margin

37.0%

No prior period
Capital Expenditures

-$487K

Previous: -$857K+43.2%
Free Cash Flow

$17.5M

Previous: $282K+6105.7%
Net Income

$18M

Previous: $1.14M+1479.2%
Operating Income

$20.8M

Previous: $5.03M+314.2%
Gross Profit

$51.1M

Previous: $29.3M+74.4%
Cash & Equivalents

$48M

Previous: $16.4M+192.3%
Total Assets

$245M

Previous: $218M+12.7%
Stock-Based Comp

$2.1M

Previous: $1.81M+15.9%

Revenue & EPS history

Vita Coco · Revenue · Quarterly

$140M

Q2 2023+21.1%vs Q2 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

The Company is updating its previously communicated full year 2023 guidance:

Tailwinds

  • Expect net sales growth of approximately 10-12% compared to fiscal year 2022, based on mid teens Vita Coco Coconut Water growth
  • Expect gross margins for the remainder of 2023 to improve relative to the second quarter.
  • Full year gross margins in the range of 35% to 37% reflecting improved transportation costs and branded pricing, and lower private label mix.
  • Forecast Adjusted EBITDA in the range of $56-60 million reflecting full year net sales growth and gross margin improvement
  • Management to provide additional details regarding the impact of the expected transition of a major private label customer during the earnings conference call later today.

Headwinds

  • weakness in private label due to the expected transition of a major private label customer starting in the fourth quarter.
  • 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 Q2 2023

Historical avgQ2 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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro