Core Insights - Pomerantz LLP is investigating claims on behalf of investors of The Vita Coco Company, Inc. regarding potential securities fraud or unlawful business practices [1] - A report from NINGI Research alleges that Vita Coco misled investors about its growth and operations, including the potential loss of a key contract with Costco, which accounts for approximately 25% of its net sales [3] - Following the allegations, Vita Coco's stock price dropped by $3.90, or 11%, closing at $31.55 per share on March 26, 2025 [4] Company Overview - The Vita Coco Company, Inc. is publicly traded on NASDAQ under the ticker COCO [1] - The company is primarily known for its coconut water business, but is reportedly facing operational challenges beyond this core segment [3] Legal Context - Pomerantz LLP is recognized for its expertise in corporate, securities, and antitrust class litigation, having a long history of fighting for victims of securities fraud and corporate misconduct [5] - The firm is currently seeking to gather information from investors who may have been affected by the alleged misconduct of Vita Coco [1][5]

Financial Data and Key Metrics Changes - In Q1 2025, net sales increased by $19 million or 17% year-over-year to $131 million, driven by a 25% growth in Vita Coco coconut water net sales [22][24] - Gross profit for the quarter was $48 million, an increase of $1 million compared to the prior year, with gross margins at 37%, down approximately 550 basis points from 42% in Q1 2024 [23][24] - Net income attributable to shareholders was $19 million or $0.31 per diluted share, compared to $14 million or $0.24 per diluted share in the prior year [24] Business Line Data and Key Metrics Changes - Vita Coco coconut water net sales increased by 25%, while private label sales decreased by 12%, with private label coconut water experiencing a 10% growth offset by a decline in coconut oil [22][24] - The other product category saw an 84% growth, primarily due to the positive impact from Vita Coco treats [15][24] - In the Americas, Vita Coco coconut water net sales increased by 24% to $86 million, while private label decreased by 13% to $21 million [22] Market Data and Key Metrics Changes - Vita Coco coconut water grew by 20% in retail dollars in the US and 21% in the UK during Q1 2025 [10] - The coconut water category is one of the fastest-growing beverage categories, with growth rates of 23% in the US and 19% in the UK [9][10] - The international segment reported a 17% increase in net sales, with Vita Coco coconut water growing by 36% across major markets [23] Company Strategy and Development Direction - The company aims to grow the Vita Coco brand by expanding the coconut water category and innovating around core offerings [8] - International growth is a priority, with significant investments planned for the UK, Germany, and other European markets [13] - The company is exploring innovation in adjacent categories and potential M&A opportunities to enhance shareholder value [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the coconut water growth trajectory, citing a strong inventory position and positive retail programming [14][21] - The company anticipates that the coconut water category will continue to grow, with expectations of doubling the category in the coming years [13] - Management is confident in navigating the current environment, including potential tariff impacts, due to a diversified sourcing strategy [20][21] Other Important Information - The company has a strong balance sheet with total cash on hand of $154 million and no debt under its revolving credit facility [26] - The board approved an additional $25 million for share repurchases, increasing the total authorization to $65 million [26][27] - The company expects net sales for the full year 2025 to be between $555 million and $570 million, with gross margins projected at 35% to 37% [27][28] Q&A Session Summary Question: Can you elaborate on your mitigation efforts regarding tariffs? - Management indicated that they entered the year with healthy inventory, which helps delay tariff impacts. Mitigation efforts include continuous cost improvements and potential pricing adjustments to offset tariff costs [34][35][36] Question: What is the expected impact of pricing on demand? - Management plans to take pricing to cover the unmitigated costs of tariffs, with expectations that the category's health will support consumer acceptance of price increases [41][42][56] Question: How is the company planning to grow internationally? - The company is investing in both marketing and supply chain resources to support growth in international markets, emphasizing the need for boots on the ground to establish relationships with retailers [89][90] Question: What are the drivers behind higher finished goods costs? - Higher finished goods costs are attributed to new factory setups and increased ocean freight rates compared to the previous year [59][63][65] Question: How flexible is the company in adjusting sourcing in response to tariffs? - The company is well-positioned to adapt sourcing strategies, with a lead time of 12 to 24 months for new factories, but can reallocate supply more quickly between markets [97][100][102]

Core Viewpoint - Vita Coco Company, Inc. reported quarterly earnings of $0.31 per share, exceeding the Zacks Consensus Estimate of $0.22 per share, and showing an increase from $0.24 per share a year ago, representing a 40.91% earnings surprise [1] Financial Performance - The company achieved revenues of $130.92 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.85% and increasing from $111.7 million year-over-year [2] - Over the last four quarters, the company has exceeded consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance and Outlook - Vita Coco shares have declined approximately 14.5% since the beginning of the year, compared to a 5.5% decline in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.39 on revenues of $161.53 million, and for the current fiscal year, it is $1.13 on revenues of $570.33 million [7] Industry Context - The Beverages - Soft drinks industry, to which Vita Coco belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, indicating potential challenges ahead [8]

Financial Performance - For the three months ended March 31, 2025, net sales increased by 17.2% to $130,921,000 compared to $111,698,000 in the same period of 2024[120] - Gross profit for the first quarter of 2025 was $48,085,000, slightly up from $47,177,000 in the prior year[120] - Operating income increased to $19,293,000 in Q1 2025 from $18,959,000 in Q1 2024[120] - Net income for the three months ended March 31, 2025, was $18.9 million, a 32.5% increase from $14.2 million in the prior year[120] - Adjusted EBITDA for the three months ended March 31, 2025, was $22.5 million, compared to $21.2 million for the same period in 2024, reflecting improved operational performance[147] - EBITDA increased by $6.4 million, or 38.4%, to $23.0 million for the three months ended March 31, 2025, compared to $16.7 million in the same period of 2024[147] Sales Performance - Vita Coco Coconut Water net sales grew by 25.4%, with a case equivalents volume increase of 25.2%[123] - The Americas segment reported a 17.2% increase in net sales, driven primarily by a 23.9% increase in Vita Coco Coconut Water sales[123] - Americas net sales increased by $16.5 million, or 17.2%, to $112.6 million for the three months ended March 31, 2025, driven by a 23.5% growth in CE volume of Vita Coco Coconut Water[126] - Vita Coco Coconut Water net sales rose by $16.6 million, or 23.9%, to $86.1 million for the three months ended March 31, 2025, attributed to a 23.5% increase in CE volume due to heightened demand[127] - International net sales increased by $2.7 million, or 17.4%, to $18.3 million for the three months ended March 31, 2025, primarily driven by a 27.2% growth in CE volume in Germany and the United Kingdom[130] - Net sales from Other products increased by $3.0 million, or 130.2%, to $5.3 million for the three months ended March 31, 2025, driven by the national rollout of Vita Coco Treats[129] Cost and Expenses - Gross profit increased by $0.9 million, or 1.9%, to $48.1 million for the three months ended March 31, 2025, despite a 28.4% increase in cost of goods sold to $82.8 million[134] - Operating expenses rose to $28.8 million from $28.2 million, reflecting ongoing investments in sales and marketing[120] - Total cost of goods sold increased by $18.3 million, or 28.4%, to $82.8 million for the three months ended March 31, 2025, primarily due to higher sales volume and increased transportation costs[133] - Selling, general, and administrative expenses increased by $0.6 million, or 2.0%, to $28.8 million for the three months ended March 31, 2025, mainly due to higher personnel-related expenses[136] Tax and Income - The effective income tax rate rose to 22.5% for the three months ended March 31, 2025, compared to 21.0% in the prior year, primarily due to increased pre-tax profits in higher tax jurisdictions[143] - Income tax expense rose by $1.7 million, or 45.1%, to $5.5 million for the three months ended March 31, 2025, with an effective tax rate of 22.5% compared to 21.0% in the prior year[142] Cash Flow and Liquidity - Cash flows from operating activities showed a significant decrease, with a net outflow of $9.8 million for the three months ended March 31, 2025, compared to an outflow of $267,000 in the prior year[151] - The company had $153.6 million in cash and cash equivalents as of March 31, 2025, down from $164.7 million at the end of 2024[148] - Cash used in operating activities increased by $9.5 million compared to the prior year, influenced by timing differences in accounts receivable collection[154] - Cash used in investing activities rose to $0.6 million, primarily due to capital expenditures for new office locations[155] - Net cash used by financing activities decreased by $8.0 million to $(1.1) million for the three months ended March 31, 2025, due to fewer share repurchases compared to the previous year[156] - As of March 31, 2025, the outstanding balance on the Revolving Facility was zero, indicating strong liquidity management[160] Private Label Sales - Private label net sales decreased by 12.7% to $21,197,000, impacted by the transition out of private label coconut oil sales[123] - Private label net sales decreased by $3.1 million, or 12.7%, to $21.2 million for the three months ended March 31, 2025, primarily due to a decline in the private label coconut oil business[128] - Private label net sales decreased by $0.4 million, or 7.6%, to $4.8 million for the three months ended March 31, 2025, primarily due to a decline in the coconut oil business[132] Tariff and Cost Management - The company anticipates that the imposition of a new 10% baseline tariff will increase the cost of goods sold, affecting future financial results[103] - The company is closely monitoring the evolving tariff landscape and implementing cost-mitigation measures[103] Operational Overview - The company operates in over 35 countries, with primary markets in North America, the United Kingdom, and Germany[102] - As of March 31, 2025, the company sources coconut water from a diversified network of 16 factories across six countries[101] Accounting and Compliance - The Company’s consolidated financial statements are prepared in accordance with U.S. GAAP, requiring estimates and judgments that may affect reported amounts[164] - There were no material changes to critical accounting policies during the three months ended March 31, 2025, ensuring consistency in financial reporting[166] - The Company evaluates its estimates and assumptions on an ongoing basis, which may lead to differences in actual results under varying conditions[165] - Recent accounting pronouncements that may impact financial position and results of operations are disclosed in the Summary of Significant Accounting Policies[167]

The Vita Coco Company (COCO) Q1 2025 Earnings Call April 30, 2025 08:30 AM ET Speaker0 Good day, and welcome to the Vitacoco Company First Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. After the speaker presentation, there will be a question and answer session. To withdraw your question, press 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker, Mr. John Mills, managing ...

BUILDING THE BETTER BEVERAGE PLATFORM OF THE FUTURE 2025 FIRST QUARTER ©2024 VITA COCO. PROPRIETARY AND CONFIDENTIAL 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 reconciliation tables of U.S. GAAP to ...

Exhibit 99.1 The Vita Coco Company Reports Strong First Quarter 2025 Financial Results Net Sales Increased 17% to $131 million benefiting from Vita Coco Coconut Water growth of 25% Net Income Increased $5 million to $19 million and Non-GAAP Adjusted EBITDA Increased $1 million to $23 million 1 Company Reaf irms Full Year Outlook NEW YORK, NY – April 30, 2025 – The Vita Coco Company, Inc. (NASDAQ:COCO) ("Vita Coco" or "the Company"), a leading high-growth platform of better-for-you beverage brands, today ann ...

Net Sales Increased 17% to $131 million benefiting from Vita Coco Coconut Water growth of 25% Net Income Increased $5 million to $19 million and Non-GAAP Adjusted EBITDA1 Increased $1 million to $23 million Company Reaffirms Full Year Outlook NEW YORK, April 30, 2025 (GLOBE NEWSWIRE) -- The Vita Coco Company, Inc. (NASDAQ:COCO) (“Vita Coco” or “the Company”), a leading high-growth platform of better-for-you beverage brands, today announced financial results for the first quarter ended March 31, 2025. First ...

Core Insights - Vita Coco is hosting a Nostalgia Mall pop-up event in New York City on May 9th and 10th, 2025, in collaboration with Limited Too, featuring exclusive co-branded merchandise [5][8] - The event celebrates the launch of a new flavor, Orange & Creme, as part of Vita Coco's Treats line, which combines coconut milk with bright orange citrus flavors [6][8] - The immersive experience aims to evoke early 2000s mall culture, offering nostalgic activities and products, including shopping for exclusive tees and enjoying themed food and drinks [7][9] Company Overview - Vita Coco is the leading coconut water brand in the U.S., co-founded in 2004, and operates as a public benefit corporation and Certified B Corporation [12] - The company focuses on delivering healthy, nutritious, and great-tasting products, including its flagship coconut water, sustainably packaged water, and protein-infused water [12] - Coconut water has gained popularity among consumers for its electrolytes and nutrients, making it a preferred beverage choice for various occasions [12]

NEW YORK, April 25, 2025 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of The Vita Coco Company, Inc. (“Vita Coco” or the “Company”) (NASDAQ: COCO). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980. The investigation concerns whether Vita Coco and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.  [Click here for information about joining the class action] ...