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Mar 31, 2022
Vita Coco Q1 2022 Earnings Report
Net sales increased, driven by Vita Coco Coconut Water growth, but gross profit decreased due to increased transportation costs.
Key Takeaways
The Vita Coco Company reported a 28% increase in net sales to $96 million for Q1 2022, driven by strong growth in Vita Coco Coconut Water. However, gross profit decreased due to increased transportation costs, resulting in a net income of $2 million, or $0.04 per diluted share. The company is revising its full-year Adjusted EBITDA guidance due to increased cost pressures but remains confident in achieving its net sales growth guidance of 16-20%.
Net sales grew 28% to $96 million, driven by a 38% increase in Vita Coco Coconut Water sales.
Gross profit was $19 million, a decrease from $24 million in the prior year, primarily due to higher transportation costs.
Net income attributable to shareholders was $2 million, or $0.04 per diluted share, benefiting from a non-cash gain on derivative instruments.
Adjusted EBITDA was a loss of $3 million, compared to a gain of $6 million in the same period last year.
Revenue by Geographic Location
Forward Guidance
The Company expects net sales in the range of $440-455 million, representing growth of approximately 16-20% compared to fiscal year 2021. Anticipate full year gross margins in the mid 20%’s due to the continued expectation of elevated transportation costs, partially offset by the benefit of higher net pricing and accelerated efficiency initiatives. Forecast Adjusted EBITDA in the range of $27-32 million reflecting higher than anticipated transportation costs in the first quarter.
Positive Outlook
- Expects net sales growth of 16-20% for fiscal year 2022.
- Anticipates gross margin improvement for the remainder of 2022 compared to the first quarter.
- Expects full-year gross margins in the mid-20s.
- Believes pricing and cost initiatives will enable it to achieve its original Adjusted EBITDA expectations for the balance of the year.
- Continue to expect net sales in the range of $440-455 million
Challenges Ahead
- Expects continued elevated transportation costs.
- Revising full year Adjusted EBITDA guidance to account for increased cost pressure.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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