NASDAQ$COCO

The Vita Coco Company Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Net sales increased and gross margin improved, driven by lower transportation costs and strong sales growth.

The Vita Coco Company reported strong Q3 2023 results, with net sales increasing by 11% to $138 million and gross margin improving to 41%. Net income rose to $15 million, or $0.26 per diluted share, driven by sales growth and margin expansion. The company raised its full-year net sales and adjusted EBITDA guidance and announced a $40 million share repurchase program.

  • Net sales grew by 11% to $138 million, driven by an 8% increase in Vita Coco Coconut Water sales and a 5% volume growth.
  • Gross profit reached $56 million, representing 41% of net sales, a significant increase from 26% in the prior-year period.
  • Net income was $15 million, or $0.26 per diluted share, compared to $7 million, or $0.13 per diluted share in the prior year.
  • Non-GAAP Adjusted EBITDA was $27 million, up from $12 million in the prior-year period, driven by gross profit improvements.

Headline financials

Total Revenue

$138M

Previous: $124M+11.3%
EPS (adj)

$0.26

Previous: $0.13+100.0%
Capital Expenditures

-$533K

Previous: -$907K+41.2%
Free Cash Flow

$14.6M

Previous: $6.35M+130.4%
Net Income

$15.2M

Previous: $7.26M+108.9%
Operating Income

$23.5M

Previous: $8.62M+173.0%
Gross Profit

$56.2M

Previous: $32.6M+72.4%
Cash & Equivalents

$94.9M

Previous: $21.2M+347.3%
Total Assets

$268M

Previous: $218M+22.9%
Stock-Based Comp

$2.86M

Previous: $1.46M+96.4%

Revenue & EPS history

Vita Coco · Revenue · Quarterly

$138M

Q3 2023+11.3%vs Q3 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

The company expects net sales growth of approximately 13-15% for the full year 2023. Full year gross margins are expected to be in the range of 35% to 37%. Adjusted EBITDA is forecast in the range of $64-67 million.

Tailwinds

  • Net sales growth of approximately 13-15% compared to fiscal year 2022
  • Mid teens Vita Coco Coconut Water growth
  • Strength in private label resulting from expanded distribution with new and existing customers
  • Revised expectation of retaining the majority of a key customer's private label coconut water business
  • Full year gross margins in the range of 35% to 37%

Headwinds

  • Expected private label price/mix impacts
  • Increased investment in SG&A to support the long term growth of the company
  • Unpredictability in the movement in foreign currency rates
  • Future charges or reversals outside of the normal course of business
  • Potential volatility in transportation costs

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 Q3 2023

Historical avgQ3 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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