NASDAQ$COCO

The Vita Coco Company Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported a net sales increase of 3% to $144 million, with Vita Coco Coconut Water growth of 4%. Net income increased to $19 million, and Non-GAAP Adjusted EBITDA increased to $32 million.

The Vita Coco Company reported a 3% increase in net sales to $144 million for Q2 2024. Vita Coco Coconut Water sales grew by 4%. The company reaffirmed its full-year guidance, expecting net revenue between $500-$510 million and Adjusted EBITDA between $76-$82 million.

  • Net sales grew 3% in the second quarter to $144 million.
  • Vita Coco Coconut Water net sales growth of 4% in the second quarter.
  • Gross profit was $59 million in the second quarter, an increase of $8 million.
  • Non-GAAP Adjusted EBITDA was $32 million compared to $24 million for the second quarter.

Headline financials

Total Revenue

$144M

Previous: $140M+3.2%
EPS

$0.32

Previous: $0.31+3.2%
Non-GAAP Adjusted EBITDA

$32.2M

No prior period
Gross Margin

41.0%

Previous: 37.0%+10.8%
Capital Expenditures

-$414K

Previous: -$487K+15.0%
Free Cash Flow

$18.7M

Previous: $17.5M+6.7%
Net Income

$19.1M

Previous: $18M+6.1%
Operating Income

$30M

Previous: $20.8M+43.8%
Gross Profit

$58.7M

Previous: $51.1M+15.0%
Cash & Equivalents

$150M

Previous: $48M+212.9%
Total Assets

$323M

Previous: $245M+31.6%
Stock-Based Comp

$2.4M

Previous: $2.1M+14.1%

Revenue & EPS history

Vita Coco · Revenue · Quarterly

$144M

Q2 2024+3.2%vs Q2 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

The Company is reaffirming its full year guidance and expects the flow of product should allow them to rebuild retail and distributor inventories to more normal levels by the end of the year, which they believe sets them up for a strong 2025.

Tailwinds

  • Expect 2024 net sales to be between $500 million and $510 million.
  • Projected Vita Coco Coconut Water and private label coconut water volume growth.
  • SG&A expenses expected to be approximately flat to up slightly versus 2023.
  • Forecasting Adjusted EBITDA in the range of $76 million to $82 million.

Headwinds

  • Expected decreases in private label coconut oil business and price/mix effects.
  • Full year gross margin expected to be between 37% and 39%.
  • Recent increases on certain ocean freight routes expected to adversely affect gross margins in the second half.
  • This impact is expected to be most severe in the fourth quarter.
  • Uncertainty and instability of the current operating environment, global economies, and geopolitical landscape could affect this outlook and our future results.

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 2024

Historical avgQ2 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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