Table of Contents ____________________ Common Stock, Par Value $0.01 Per Share COCO The Nasdaq Stock Market LLC FORM 10-Q ____________________ For the quarterly period ended March 31, 2023 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-40950 Delaware 11-3713156 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 250 Park Avenue South Seventh Floor New York, NY 10003 (Address of principal e ...

| --- | --- | |-------|-------------------------------------------------------------------------------------| | | UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 | | | FORM 10-K | l You should read this Annual Report on Form 10-K and the documents that we reference in this Annual Report on Form 10-K and have filed as exhibits to this Annual Report on Form 10-K with the understanding that our actual future results, performance and achievements may be materially different from what we ...

The Vita Coco Company, Inc. (NASDAQ:COCO) Q4 2022 Earnings Conference Call March 8, 2023 8:30 AM ET Company Participants Mike Kirban - Co-Founder and Executive Chairman Martin Roper - CEO Rowena Ricalde - Interim CFO Corey Baker - Incoming CFO Clay Crumbles - ICR, IR Conference Call Participants Jon Andersen - William Blair Chris Carey - Wells Fargo Kaumil Gajrawala - Credit Suisse Bryan Spillane - Bank of America Michael Lavery - Piper Sandler Gregory Porter - Evercore ISI Operator Hello, and welcome to th ...

| --- | --- | --- | |-------|-----------------------------------------------------|-------| | | | | | | BUILDING THE BETTER BEVERAGE PLATFORM OF THE FUTURE | | | | 2022 FOURTH QUARTER AND FULL YEAR RESULTS | | In addition to disclosing results determined in accordance with U.S. GAAP, The Vita Coco Company, Inc. (the "Company") also discloses certain non-GAAP results of operations, including, but not limited to, Adjusted EBITDA, that include certain adjustments or exclude certain charges and gains that are d ...

The Vita Coco Company, Inc. (NASDAQ:COCO) Q3 2022 Earnings Conference Call November 9, 0000 8:30 AM ET Company Participants Clay Crumbles - ICR Michael Kirban - Co-Founder and Executive Chairman Martin Roper - Chief Executive Officer Rowena Ricalde - Interim Chief Financial Officer Conference Call Participants Bonnie Herzog - Goldman Sachs Christopher Carey - Wells Fargo Michael Lavery - Piper Sandler Bryan Spillane - Bank of America Operator Hello, and welcome to the Vita Coco Company's Third Quarter 202 ...

[PART I - FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Condensed Consolidated Financial Statements (unaudited)](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) This section presents unaudited condensed consolidated financial statements for Q3 2022 and 2021, showing a 14.6% net sales increase to $335.8 million but a net income decrease from $22.4 million to $10.6 million due to higher costs [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $218.4 million by September 30, 2022, driven by receivables and derivatives, while liabilities rose to $76.8 million and equity to $141.6 million Balance Sheet Summary (in thousands) | Metric | Sep 30, 2022 (in thousands) | Dec 31, 2021 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $190,857 | $173,259 | | **Total Assets** | $218,378 | $197,484 | | **Total Current Liabilities** | $65,062 | $73,962 | | **Total Liabilities** | $76,765 | $74,311 | | **Total Stockholders' Equity** | $141,613 | $123,173 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net sales for the nine months ended September 30, 2022, increased to $335.8 million, but gross profit declined to $80.9 million and net income to $10.6 million due to higher cost of goods sold Statements of Operations Summary (in thousands, except EPS) | Metric (in thousands, except EPS) | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | **Net Sales** | $335,796 | $292,929 | | **Gross Profit** | $80,928 | $91,561 | | **Income from Operations** | $7,910 | $29,664 | | **Net Income** | $10,624 | $22,409 | | **Diluted EPS** | $0.19 | $0.42 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was $18.2 million for the nine months ended September 30, 2022, while financing activities provided $12.2 million, resulting in a $7.5 million net decrease in cash Cash Flow Summary (in thousands) | Cash Flow Activity (in thousands) | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(18,181) | $(16,351) | | **Net cash used in investing activities** | $(907) | $(127) | | **Net cash provided by (used in) financing activities** | $12,153 | $(19,676) | | **Net decrease in cash** | $(7,479) | $(36,271) | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue disaggregation, debt, derivatives, and segment performance, highlighting the adoption of ASC 842 and a 55% revenue concentration with two major customers - The company's main products are Vita Coco Coconut Water, Private Label products, and Other beverages like Runa, Ever & Ever, and PWR LIFT[36](index=36&type=chunk)[60](index=60&type=chunk) - Two major customers accounted for **55% of total net sales** for the nine months ended September 30, 2022[51](index=51&type=chunk)[78](index=78&type=chunk) - The company uses forward currency swaps to mitigate currency risk on inventory purchases and intercompany transactions involving BRL, MYR, THB, GBP, and CAD[82](index=82&type=chunk)[83](index=83&type=chunk) Revenue by Segment (Nine Months Ended Sep 30, 2022) | Revenue (Nine Months Ended Sep 30, 2022) | Americas (in thousands) | International (in thousands) | Consolidated (in thousands) | | :--- | :--- | :--- | :--- | | **Vita Coco Coconut Water** | $217,934 | $30,110 | $248,044 | | **Private Label** | $68,413 | $9,521 | $77,934 | | **Other** | $7,553 | $2,265 | $9,818 | | **Total** | **$293,900** | **$41,896** | **$335,796** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A discusses a 14.6% net sales increase for the first nine months of 2022, a gross margin decline to 24.1% due to $28 million in transportation costs, and sufficient liquidity for the next 12 months - For the nine months ended September 30, 2022, gross profit absorbed incremental costs of goods of approximately **$28 million** compared to the prior year, mostly driven by increased transportation costs[135](index=135&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Results of operations show net sales increased 14.6% to $335.8 million, but gross profit decreased 11.6% to $80.9 million due to higher costs, and SG&A expenses rose 18.0% - Consolidated net sales increased **14.6%** for the nine months ended Sep 30, 2022, driven by a **11.9% increase** in case equivalent (CE) volume and benefits from net pricing actions[156](index=156&type=chunk)[157](index=157&type=chunk) Gross Profit & Margin | Gross Profit & Margin | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | **Gross Profit** | $80,928 thousand | $91,561 thousand | | **Gross Margin** | 24.1% | 31.3% | - SG&A expenses increased by **18.0%** for the nine months ended Sep 30, 2022, due to higher marketing spend, personnel expenses, insurance, and a **$619 thousand impairment loss** on assets held for sale in Ecuador[171](index=171&type=chunk)[172](index=172&type=chunk)[126](index=126&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity sources include cash from operations and a credit facility, with $21.2 million in cash and $9.5 million outstanding on the facility, deemed sufficient for the next 12 months - Cash and cash equivalents were **$21.2 million** as of September 30, 2022, down from **$28.7 million** at year-end 2021[188](index=188&type=chunk) - The company had **$9.5 million** outstanding on its 2020 Credit Facility as of September 30, 2022, with a total committed borrowing capacity of **$60 million**[198](index=198&type=chunk) Cash Flow Summary (in thousands) | Cash Flow Summary (in thousands) | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | **Operating Activities** | $(18,181) | $(16,351) | | **Investing Activities** | $(907) | $(127) | | **Financing Activities** | $12,153 | $(19,676) | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risks include interest rate risk from variable-rate debt, foreign currency risk managed by derivatives, significant inflation risk in transportation, and credit risk concentrated with two major customers - A **100 basis point change** in interest rates would impact annual interest expense by approximately **$0.1 million** based on borrowings as of September 30, 2022[207](index=207&type=chunk) - The company uses a 24-month rolling layered approach to hedge a majority of its forecasted yearly foreign currency exposure, with a total notional value of forward contracts at **$90.0 million** as of September 30, 2022[208](index=208&type=chunk)[209](index=209&type=chunk) - The company is experiencing significant inflation, especially in transportation costs (ocean freight and domestic logistics), which has pressured costs and margins[211](index=211&type=chunk) - Credit risk is concentrated with two customers representing approximately **55% of consolidated net sales** for the three months ended September 30, 2022[213](index=213&type=chunk) [Item 4. Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of September 30, 2022, with no material changes to internal control over financial reporting during the quarter - Management concluded that as of September 30, 2022, the company's disclosure controls and procedures were effective at the reasonable assurance level[215](index=215&type=chunk) - There were no material changes in internal control over financial reporting during the quarter ended September 30, 2022[216](index=216&type=chunk) [PART II - OTHER INFORMATION](index=40&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any material legal proceedings - The company is not currently a party to any material legal proceedings[219](index=219&type=chunk) [Item 1A. Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in the 2021 Annual Report on Form 10-K are reported - There have been no material changes to the risk factors disclosed in the company's 2021 Form 10-K[220](index=220&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities were reported during the period - None reported[221](index=221&type=chunk) [Item 3. Defaults Upon Senior Securities](index=40&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported - None reported[222](index=222&type=chunk) [Item 4. Mine Safety Disclosures](index=40&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[223](index=223&type=chunk) [Item 5. Other Information](index=40&type=section&id=Item%205.%20Other%20Information) This item is not applicable - Not applicable[224](index=224&type=chunk) [Item 6. Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and interim CFO certifications and XBRL data files - Lists various filed exhibits, including CEO and CFO certifications pursuant to SEC rules[229](index=229&type=chunk)

Financial Data and Key Metrics Changes - Net sales grew 13% year-over-year to $115 million, driven primarily by a 21% increase in the Vita Coco Coconut Water brand [8][40] - Gross profit for the second quarter was $29 million, resulting in a gross margin of 25%, which was down from the previous year but improved sequentially from Q1 2022 by over 500 basis points [44][46] - Net income attributable to shareholders was $1 million, or $0.02 per diluted share, compared to $8 million, or $0.15 per diluted share in the same period last year [46] Business Line Data and Key Metrics Changes - In the Americas, net sales increased 17% to $100 million, while the International segment saw a 5% decline to $15 million, primarily due to foreign exchange impacts [19][42] - Vita Coco Coconut Water in the Americas grew 23% to $76 million, driven by strong consumer demand and positive pricing mix [41] - Private label sales declined 3% to $21 million, impacted by a decrease in case equivalent volume [42] Market Data and Key Metrics Changes - Vita Coco holds a 51% value share in the coconut water category, up 7% from the previous year [9] - Household penetration for Vita Coco stands at 11.4%, an increase of approximately 170 basis points year-over-year, adding about 2.3 million households [11] Company Strategy and Development Direction - The company aims to deepen household penetration, increase category share, and expand usage occasions to drive product velocity [9][12] - A collaboration with Diageo to introduce Vita Coco Spiked is planned for early 2023, aiming to enhance brand awareness and consumption occasions [13][55] - The company remains committed to its long-term growth strategy, targeting mid-teens net sales growth [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong consumer demand and improvements in supply chain logistics [57] - The company anticipates that pricing actions will offset current elevated costs and is confident in achieving financial targets for 2022 [38][52] - Management noted that the worst may be behind them regarding margin deterioration, with expectations for gross margin recovery in the coming year [68] Other Important Information - The CFO, Kevin Benmoussa, will be leaving the company, and Rowena Ricalde will assume the Interim CFO role [60] - The company is navigating challenges in supply chain logistics, particularly in obtaining certain ingredients for flavored products [36] Q&A Session Summary Question: Impact of larger pack sizes on margins - Management indicated that larger pack sizes are still a small part of the business but are growing faster than single packs, which may suppress price realization [62][64] Question: Confidence in pricing actions for the second half of the year - Management stated that the pricing actions planned are in line with previous expectations and should help recover margins [65][66] Question: Ocean freight rates and pricing actions - Management confirmed that current pricing actions are designed to offset inflation and that they are optimistic about future margin recovery [74][68] Question: Collaboration with Diageo and its impact on margins - Management noted that while the collaboration could significantly impact profits over time, immediate effects are not expected as investments are being made to launch the product [76] Question: Distribution targets and inventory challenges - Management believes they are on track to meet the target of 25,000 new points of distribution, assuming inventory issues are resolved [79]

Table of Contents ____________________ ____________________ Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, Par Value $0.01 Per Share COCO The Nasdaq Stock Market LLC UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ____________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15( ...

Second Quarter 2022 Performance - Net sales reached $115 million, a 13% increase compared to the prior year[8] - Adjusted EBITDA was $7 million, representing a 6% margin[8] - The Vita Coco brand achieved a 51% market share in IRI tracked channels as of the 52 weeks ending June 26, 2022[8] - Vita Coco Coconut Water net sales grew by 21%[8] Financial Highlights - Q2 2022 gross profit was $29 million, with a 25% margin, a decrease of 3 percentage points[17] - Q2 2022 net income was $1 million, representing a 1% margin[25] - Case Equivalent (CE) volumes increased by 7%[8] Brand Performance and Growth - Vita Coco's market share in the US grew by 7% to reach 51%[10, 11] - Household penetration increased by 17%[14] - Shoppers are buying Vita Coco products 7% more often[15] - Spend per trip increased by 6% to $764[16] 2022 Full Year Guidance - The company reaffirmed its net sales guidance of $440-455 million, representing a 16-20% growth[23] - Adjusted EBITDA is projected to be $27-32 million[23]

©2022 THE VITA COCO COMPANY. PROPRIETARY AND CONFIDENTIAL 1 COMPANY THE PIONEER IN THE NATURAL & PLANT-BASED REVOLUTION 1 ST QUARTER 2022 RESULTS DISCLAIMER Non-GAAP Financial Measures In addition to disclosing results determined in accordance with U.S. GAAP, The Vita Coco Company, Inc. (the "Company") also discloses certain non-GAAP results of operations, including, but not limited to, Adjusted EBITDA, that include certain adjustments or exclude certain charges and gains that are described in the reconcili ...