NASDAQ$COCO

The Vita Coco Company Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported a decrease in net sales but growth in Vita Coco Coconut Water, along with increased net income, and raised full year guidance.

The Vita Coco Company reported a 4% decrease in net sales to $133 million for Q3 2024, while Vita Coco Coconut Water sales grew by 8%. Net income increased to $19 million, and the company raised its full-year guidance for net sales and adjusted EBITDA.

  • Net sales decreased 4% to $133 million in the third quarter, but year-to-date sales remained flat at $389 million.
  • Vita Coco Coconut Water net sales grew 8% in the third quarter and 5% year-to-date.
  • Gross profit was $52 million in the third quarter, with a gross margin of 39%.
  • Net income increased to $19 million, or $0.32 per diluted share, in the third quarter.

Headline financials

Total Revenue

$133M

Previous: $138M-3.7%
EPS

$0.32

Previous: $0.26+23.1%
Non-GAAP Adjusted EBITDA

$23M

No prior period
Gross Margin

39.0%

No prior period
Capital Expenditures

-$849K

Previous: -$533K-59.3%
Free Cash Flow

$18.4M

Previous: $14.6M+25.8%
Net Income

$19.3M

Previous: $15.2M+27.0%
Operating Income

$20.6M

Previous: $23.5M-12.4%
Gross Profit

$51.6M

Previous: $56.2M-8.2%
Cash & Equivalents

$157M

Previous: $94.9M+65.2%
Total Assets

$353M

Previous: $268M+31.5%
Stock-Based Comp

$2.14M

Previous: $2.86M-25.2%

Revenue & EPS history

Vita Coco · Revenue · Quarterly

$133M

Q3 2024-3.7%vs Q3 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

The Company is raising its full year guidance for net sales and adjusted EBITDA.

Tailwinds

  • Expect 2024 net sales to be between $505 million and $515 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%.
  • SG&A expenses expected to be flat to slightly down versus 2023.
  • Forecasting adjusted EBITDA in the range of $80 million to $84 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 expected to adversely affect gross margins in the fourth 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 Q3 2024

Historical avgQ3 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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