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Mar 31, 2024
Vita Coco Q1 2024 Earnings Report
Net sales and net income increased, driven by improved gross profit and lower transportation costs. Company raised full year guidance.
Key Takeaways
The Vita Coco Company reported a 2% increase in net sales to $112 million for Q1 2024. Net income increased to $14 million, and Non-GAAP Adjusted EBITDA increased to $21 million. The company raised its full year guidance, expecting net revenue between $500-$510 million and Adjusted EBITDA between $76-$82 million.
Net sales grew 2% to $112 million, with Vita Coco Coconut Water net sales growth of 1%.
Gross profit was $47 million, or 42% of net sales, an increase of $14 million compared to 31% of net sales.
Net income was $14 million, or $0.24 per diluted share, compared to a net income of $7 million, or $0.12 per diluted share.
Non-GAAP Adjusted EBITDA was $21 million compared to $9 million, up $12 million due to improvements in gross profit partially offset by increased SG&A.
Forward Guidance
The Company is raising its full year guidance based on year to date performance and current positive outlook:
Positive Outlook
- Expect 2024 net sales to be between $500 million and $510 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%, with recent increases on certain ocean freight routes adversely affecting gross margins beginning in the second quarter.
- SG&A expenses expected to be approximately flat to slightly up in dollars versus 2023.
- Forecasting Adjusted EBITDA in the range of $76 million to $82 million.
Challenges Ahead
- 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 adversely affecting gross margins beginning in the second quarter.
- The impact of freight costs is expected to be most severe in the second quarter and moderate each subsequent quarter.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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