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Sep 30, 2024
Vita Coco Q3 2024 Earnings Report
Reported a decrease in net sales but growth in Vita Coco Coconut Water, along with increased net income, and raised full year guidance.
Key Takeaways
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.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The Company is raising its full year guidance for net sales and adjusted EBITDA.
Positive Outlook
- 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.
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 expected to adversely affect gross margins in the fourth quarter.
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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