PART I - FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements (unaudited)](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20%28unaudited%29) This section presents the unaudited condensed consolidated financial statements for Q1 2024, including balance sheets, income statements, and cash flows, with a net income of $14.2 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$289,042** | **$285,682** | | Total Current Assets | $266,702 | $262,937 | | Cash and cash equivalents | $122,978 | $132,537 | | Inventory | $56,764 | $50,757 | | **Total Liabilities** | **$79,352** | **$83,245** | | Total Current Liabilities | $79,002 | $82,585 | | **Total Stockholders' Equity** | **$209,690** | **$202,437** | Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Sales | $111,698 | $109,759 | | Gross Profit | $47,177 | $33,661 | | Income from Operations | $18,959 | $6,704 | | **Net Income** | **$14,238** | **$6,705** | | Diluted EPS | $0.24 | $0.12 | Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $(267) | $9,436 | | Net cash used in investing activities | $(124) | $(449) | | Net cash provided by (used in) financing activities | $(9,086) | $597 | | **Net (decrease)/increase in cash and cash equivalents** | **$(9,557)** | **$9,771** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail significant accounting policies, revenue disaggregation, debt, derivatives, and segment reporting, along with share repurchase activities and customer concentration Net Revenue by Product and Segment (Q1 2024 vs Q1 2023, in thousands) | Segment / Product | Q1 2024 Net Revenue | Q1 2023 Net Revenue | | :--- | :--- | :--- | | **Americas** | **$96,091** | **$96,772** | | Vita Coco Coconut Water | $69,522 | $69,138 | | Private Label | $24,273 | $25,050 | | Other | $2,296 | $2,584 | | **International** | **$15,607** | **$12,987** | | Vita Coco Coconut Water | $9,665 | $9,558 | | Private Label | $5,152 | $2,666 | | Other | $790 | $763 | | **Consolidated Total** | **$111,698** | **$109,759** | - The company had no outstanding balance on its **$60 million** revolving credit facility as of March 31, 2024, and was in compliance with all financial covenants[28](index=28&type=chunk)[21](index=21&type=chunk) Major Customer Concentration | Customer | Net Sales (Q1 2024) | Accounts Receivable (Mar 31, 2024) | | :--- | :--- | :--- | | Customer A | 25% | 18% | | Customer B | 22% | 21% | - The company uses forward currency swaps to mitigate currency risk for purchases in BRL, MYR, and THB, and for intercompany transactions involving GBP and CAD[26](index=26&type=chunk)[36](index=36&type=chunk)[38](index=38&type=chunk) As of March 31, 2024, the notional amount of outstanding derivative contracts was approximately **$105 million**[26](index=26&type=chunk)[36](index=36&type=chunk)[38](index=38&type=chunk) - Under its share repurchase program, the company repurchased **391,544 shares** for **$9.2 million** during the three months ended March 31, 2024[56](index=56&type=chunk)[35](index=35&type=chunk) As of that date, **$29.9 million** remained available for future repurchases[56](index=56&type=chunk)[35](index=35&type=chunk) Earnings Per Share Calculation (Q1 2024 vs Q1 2023) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Income (in thousands) | $14,238 | $6,705 | | Weighted-average shares—basic | 56,589,565 | 56,046,904 | | Weighted-average shares—diluted | 58,746,631 | 57,351,405 | | **EPS—basic** | **$0.25** | **$0.12** | | **EPS—diluted** | **$0.24** | **$0.12** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 financial performance, highlighting a 1.8% net sales increase, significant gross margin expansion to 42.2%, and strong Adjusted EBITDA growth to $21.2 million, supported by robust liquidity Net Sales Change by Segment (Q1 2024 vs Q1 2023) | Segment | Q1 2024 Net Sales (in thousands) | YoY Change | Key Drivers | | :--- | :--- | :--- | :--- | | Americas | $96,091 | (0.7)% | Volume decline of 2.0% partially offset by price/mix benefits | | International | $15,607 | 20.2% | Price/mix benefits and volume growth of 7.8%, led by Europe | - Gross profit increased **40.2%** to **$47.2 million**, with gross margin expanding by **11.5 percentage points** to **42.2%**[166](index=166&type=chunk)[197](index=197&type=chunk) This was primarily due to significantly lower transportation costs (ocean freight and domestic logistics) and favorable net pricing for Vita Coco Coconut Water[166](index=166&type=chunk)[197](index=197&type=chunk) - Selling, general, and administrative (SG&A) expenses increased by **4.7%** to **$28.2 million**, mainly due to a **$1.9 million** rise in personnel-related expenses[167](index=167&type=chunk)[187](index=187&type=chunk) Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net income | $14,238 | $6,705 | | EBITDA | $16,654 | $8,693 | | Stock-based compensation | $2,109 | $2,162 | | Unrealized (gain)/loss on derivative instruments | $2,525 | $(1,213) | | Foreign currency (gain)/loss | $(58) | $(611) | | **Adjusted EBITDA** | **$21,230** | **$9,031** | - Cash used in operating activities was **$0.3 million**, a decrease of **$9.7 million** from the prior year, primarily due to increases in working capital which offset higher net income[253](index=253&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company identifies primary market risks as interest rate, foreign currency, inflation, and credit risk, actively managing currency exposure while noting customer concentration - The company uses derivative financial instruments to hedge foreign currency exposure, with total notional values of forward contracts at **$105.0 million** as of March 31, 2024[263](index=263&type=chunk)[265](index=265&type=chunk) - Inflationary pressures continue to increase transportation, labor, and manufacturing costs, impacting cost of goods sold and operating expenses[267](index=267&type=chunk) - Significant credit risk concentration exists, with two major customers accounting for approximately **47%** of consolidated net sales for the three months ended March 31, 2024[268](index=268&type=chunk) The company has not experienced credit issues with these customers[268](index=268&type=chunk) [Item 4. Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) The Principal Executive and Financial Officers concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting - Management, including the CEO and CFO, concluded that as of March 31, 2024, the company's disclosure controls and procedures were effective[162](index=162&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended March 31, 2024, that have materially affected, or are reasonably likely to materially affect, internal controls[163](index=163&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it is not currently a party to any material legal proceedings - As of the reporting date, the company is not involved in any material legal proceedings[278](index=278&type=chunk) [Item 1A. Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 - No material changes to the company's risk factors were reported for the quarter ended March 31, 2024[279](index=279&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's stock repurchase activity, including the repurchase of 391,544 shares for $9.2 million during Q1 2024 Share Repurchase Activity (Q1 2024) | Period | Total Shares Purchased | Average Price Paid Per Share | Approx. Value Remaining for Purchase (in millions) | | :--- | :--- | :--- | :--- | | Jan 1 - Jan 31, 2024 | 391,544 | $23.59 | $30.0 | | Feb 1 - Feb 29, 2024 | — | $— | $— | | Mar 1 - Mar 31, 2024 | — | $— | $— | [Item 5. Other Information](index=34&type=section&id=Item%205.%20Other%20Information) The company disclosed that three of its officers—the Chief Operating Officer, Chief Marketing Officer, and Chief Sales Officer—adopted Rule 10b5-1 trading plans in March 2024 for the future sale of company securities Adoption of Rule 10b5-1 Trading Plans (March 2024) | Name | Title | Date of Adoption | | :--- | :--- | :--- | | Jonathan Burth | Chief Operating Officer | March 15, 2024 | | Jane Prior | Chief Marketing Officer | March 15, 2024 | | Charles van Es | Chief Sales Officer | March 15, 2024 | [Item 6. Exhibits](index=36&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including certifications by the CEO and CFO, and XBRL data files [Signatures](index=38&type=section&id=Signatures) The report is duly signed by the company's Chief Executive Officer, Martin Roper, and Chief Financial Officer, Corey Baker, on May 2, 2024

The Vita Coco Company, Inc. (NASDAQ:COCO) Q1 2024 Earnings Conference Call May 1, 2024 8:30 AM ET Company Participants John Mills - Managing Partner at ICR Michael Kirban - Co-founder and Executive Chairman Martin Roper - Chief Executive Officer Corey Baker - Chief Financial Officer Conference Call Participants Bonnie Herzog - Goldman Sachs Christian Junquera - Bank of America Jim Salera - Stephens Trevor Sahr - William Blair Eric Serotta - Morgan Stanley Michael Lavery - Piper Sandler Gregory Porter - Ever ...

[Q1 2024 Financial Highlights & Outlook](index=1&type=section&id=Q1%202024%20Financial%20Highlights%20%26%20Outlook) [First Quarter 2024 Performance Summary](index=1&type=section&id=First%20Quarter%202024%20Performance%20Summary) The Vita Coco Company achieved a strong Q1 2024 with 2% net sales growth, doubled net income to $14 million, and significantly expanded gross margin to 42.2% due to lower costs and improved pricing Q1 2024 Key Financial Metrics (vs. Q1 2023) | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $112 million | $110 million | +2% | | **Gross Profit** | $47 million | $34 million | +38% | | **Gross Margin** | 42.2% | 30.7% | +11.5 p.p. | | **Net Income** | $14 million | $7 million | +100% | | **Diluted EPS** | $0.24 | $0.12 | +100% | | **Adjusted EBITDA** | $21 million | $9 million | +133% | - Net sales growth was driven by improved net pricing for Vita Coco Coconut Water and an increase in private label volume, partially offset by a decline in Vita Coco Coconut Water case equivalent (CE) volume[11](index=11&type=chunk) - The significant improvement in gross profit and margin was attributed to lower year-on-year global transportation costs and higher net pricing from reduced promotional activity[17](index=17&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management expressed satisfaction with Q1 performance, exceeding profit expectations due to strong gross margins, and consequently raised full-year guidance - CEO Martin Roper noted that net income and Adjusted EBITDA exceeded expectations due to stronger gross margins driven by lower transportation costs and higher net pricing[11](index=11&type=chunk) - Executive Chairman Michael Kirban stated that the flagship Vita Coco Coconut Water brand grew **9% in dollar sales** in Circana measured channels, maintaining its brand share, thanks to investments in expanding consumption occasions[16](index=16&type=chunk) [Fiscal Year 2024 Full Year Outlook](index=2&type=section&id=Fiscal%20Year%202024%20Full%20Year%20Outlook) The company raised its FY2024 guidance for net sales to $500-$510 million and Adjusted EBITDA to $76-$82 million, despite anticipating Q2 gross margin pressure from rising freight costs Updated FY 2024 Guidance | Metric | Guidance Range | | :--- | :--- | | **Net Sales** | $500 million - $510 million | | **Gross Margin** | 37% - 39% | | **Adjusted EBITDA** | $76 million - $82 million | - The company expects recent increases in ocean freight routes to adversely affect gross margins, with the most severe impact anticipated in the second quarter[20](index=20&type=chunk) - SG&A expenses for the full year are expected to be approximately flat to slightly up in dollar terms compared to 2023[20](index=20&type=chunk) [Balance Sheet and Capital Allocation](index=2&type=section&id=Balance%20Sheet%20and%20Capital%20Allocation) The company maintained a strong, debt-free balance sheet with $123 million in cash and repurchased $10 million of common stock during the quarter - As of March 31, 2024, the company had **$123 million in cash and cash equivalents** and no debt[13](index=13&type=chunk) - Under its **$40 million share repurchase program**, the company has repurchased a total of **421,544 shares** for an aggregate value of **$10 million** at an average price of **$23.72 per share**[19](index=19&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2024 saw net sales increase to $111.7 million, gross profit rise to $47.2 million, and net income more than double to $14.2 million, or $0.24 per diluted share Q1 Statement of Operations Highlights (in thousands, except per share data) | Account | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Net sales** | $111,698 | $109,759 | | **Gross profit** | $47,177 | $33,661 | | **Income from operations** | $18,959 | $6,704 | | **Net income** | $14,238 | $6,705 | | **Diluted EPS** | $0.24 | $0.12 | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets reached $289.0 million, with cash decreasing to $123.0 million, while total liabilities decreased, and stockholders' equity rose to $209.7 million Balance Sheet Summary (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $122,978 | $132,537 | | **Inventory** | $56,764 | $50,757 | | **Total current assets** | $266,702 | $262,937 | | **Total assets** | $289,042 | $285,682 | | **Total current liabilities** | $79,002 | $82,585 | | **Total liabilities** | $79,352 | $83,245 | | **Total stockholders' equity** | $209,690 | $202,437 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2024 saw net cash used in operating activities of $0.3 million, a shift from the prior year, primarily due to working capital changes and $9.2 million used for treasury stock Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Net cash from operating activities** | $(267) | $9,436 | | **Net cash used in investing activities** | $(124) | $(449) | | **Net cash from (used in) financing activities** | $(9,086) | $597 | | **Net increase/(decrease) in cash** | $(9,557) | $9,771 | [Non-GAAP Financial Measures & Supplemental Information](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Supplemental%20Information) [Reconciliation of GAAP to Non-GAAP Measures](index=8&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Q1 2024 Adjusted EBITDA significantly increased to $21.2 million from $9.0 million, with key adjustments including income tax expense, stock-based compensation, and unrealized derivative losses Adjusted EBITDA Reconciliation (in thousands) | Line Item | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Net income** | $14,238 | $6,705 | | **EBITDA** | $16,654 | $8,693 | | **Adjustments** | $4,576 | $338 | | **Adjusted EBITDA** | $21,230 | $9,031 | [Segment Performance Analysis](index=9&type=section&id=Segment%20Performance%20Analysis) Americas segment net sales slightly decreased, but gross margin expanded, while International segment net sales grew 20% with improved gross margin, despite a 0.5% overall volume decline Net Sales by Segment (in thousands) | Segment | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | **Americas** | $96,091 | $96,772 | -0.7% | | **International** | $15,607 | $12,987 | +20.2% | | **Total net sales** | $111,698 | $109,759 | +1.8% | Gross Margin by Segment | Segment | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Americas** | 42.5% | 30.1% | | **International** | 40.4% | 34.7% | | **Consolidated** | 42.2% | 30.7% | Volume (CE) Percentage Change (Q1 2024 vs. Q1 2023) | Product | Americas | International | Total | | :--- | :--- | :--- | :--- | | **Vita Coco Coconut Water** | (3.4)% | (9.0)% | (4.3)% | | **Private Label** | 3.8% | 69.0% | 12.2% | | **Total volume (CE)** | (2.0)% | 7.8% | (0.5)% |

NEW YORK, April 23, 2024 (GLOBE NEWSWIRE) -- The Vita Coco Company, Inc. (NASDAQ:COCO) ("Vita Coco" or the "Company"), a leader in the functional beverage space with a portfolio of better-for-you brands, announced today that it has formed a 501(c)(3) nonprofit, The Vita Coco Community Foundation ("Foundation"), with a mission of empowering communities to build an enduring, resilient society to thrive for future generations. "Our success as a business has always been intertwined with the well-being of the pe ...

The Zacks Beverages – Soft Drinks industry participants are well-placed for market share growth over the long term through innovation, adaptability and a focus on consumer well-being. Accelerating digital investments toward e-commerce and direct-to-consumer channels bode well. Health-consciousness, sustainability and innovation are key trends driving the industry. The industry participants are expected to gain from the expansion into newer categories and adjacent categories, including capturing market share ...

Looking ahead, the future of the U.S. economy appears promising and resilient. The recent wave of inflation, which initially caused concern, seems to have stabilized around the Fed’s target of 2%. The economy’s unexpected ability to withstand interest rate increases without a significant rise in unemployment suggests a fortunate alignment of factors contributing to a “Goldilocks” scenario — neither too cold with unnecessary unemployment nor too hot with inflationary pressures. This positive trajectory under ...

NEW YORK, April 10, 2024 (GLOBE NEWSWIRE) -- Every now and then, we all deserve a little treat, and The Vita Coco Company (NASDAQ:COCO) has just what you need. Its flagship coconut water brand, Vita Coco, is introducing Vita Coco Treats™, a new coconutmilk beverage crafted for those moments when you're in the mood for something light, sweet, and satisfying. Combining the flavors of creamy coconut and sweet strawberries, Vita Coco Treats offers a refreshingly delicious drink that can make anyone's day a litt ...

MelanieMaya/iStock via Getty Images Investment action I recommended a buy rating for Vita Coco Company (NASDAQ:COCO) when I wrote about it the last time, as I expected management to continue executing strongly and meeting growth targets. As it achieves them, the margin should expand accordingly. Based on my current outlook and analysis, I recommend a buy rating. The main concern regarding the stock was gross margin pressure from logistic costs, and COCO showed that it can manage it and has done an impre ...

Finding the best-kept Wall Street secrets is tough because, well, if it were easy, they wouldn’t be secrets. Today’s top stocks tend to be large-cap tech names with rapid (and arguably unsustainable) growth that frustrates latecomer investors when that momentum slows.That’s why, to find the best-kept Wall Street secrets, you need to satisfy two core criteria: identify emerging market opportunities and find small- or medium-cap stocks with great growth stats that target the new sector. These three stocks dem ...

Shares of The Vita Coco Company (COCO 14.89%) jumped on Wednesday after the beverage company reported financial results for the fourth quarter of 2023 that beat expectations. Vita Coco stock finished the day up an encouraging 15%.A good year for Vita CocoVita Coco enjoyed a 15% year-over-year increase for its net sales in both Q4 and for the entire year. The company enjoyed both higher sales volume and an increase to its prices.Vita Coco experienced a massive improvement in profitability. Thanks to lower sh ...