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Mar 31, 2023
Vita Coco Q1 2023 Earnings Report
Reported first quarter results with net sales increasing by 14% and gross margin improving to 31%.
Key Takeaways
The Vita Coco Company reported strong first-quarter results, with net sales up 14% to $110 million, driven by a 17% increase in Vita Coco Coconut Water sales. Gross margin improved to 30.7%, and net income attributable to shareholders was $7 million, or $0.12 per diluted share. The company is raising its full-year net sales growth and Adjusted EBITDA guidance.
Net sales grew 14% to $110 million, driven by 17% growth in Vita Coco Coconut Water.
Vita Coco Coconut Water case equivalent volumes increased 15%.
Gross profit increased to $34 million, representing 30.7% of net sales, a 77% increase from the prior year.
Net income attributable to shareholders was $7 million, or $0.12 per diluted share, compared to $2 million, or $0.04 per diluted share in the prior year.
Forward Guidance
The Company is increasing its full year guidance with net sales growth of approximately 9-12% and Adjusted EBITDA in the range of $54 million to $59 million.
Positive Outlook
- Net sales growth of approximately 9-12% compared to fiscal year 2022.
- Vita Coco Coconut Water expected to grow mid-teens.
- Private Label net sales to be slightly positive.
- Full year gross margin expected to be between 32% and 34%.
- Sequential improvement expected in the next two quarters, due primarily to improvement in transportation costs, with contributions from price and mix.
Challenges Ahead
- Higher full year SG&A expenses to support long term growth initiatives.
- Build commercial capabilities.
- Cover increased employee costs.
- Improve efficiencies with GAAP reported SG&A expenses growing a higher rate than net sales.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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