The Vita o pany(COCO) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter net sales increased 20% to $127 million, contributing to full year net sales of $516 million, a 5% increase year-over-year[4] - Vita Coco Coconut Water net sales grew 30% in the fourth quarter and 10% for the full year[4] - Full year net income rose by $9 million to $56 million, with net income per diluted share increasing to $0.94 from $0.79[11] - Non-GAAP Adjusted EBITDA for the full year was $84 million, up from $68 million in the previous year[12] - Net sales for the twelve months ended December 31, 2024, increased to $516,013,000, up from $493,612,000 in 2023, representing a growth of 4.1%[27] - Gross profit for the twelve months ended December 31, 2024, was $198,783,000, compared to $180,729,000 in 2023, reflecting an increase of 10.0%[27] - Net income for the twelve months ended December 31, 2024, reached $55,952,000, a rise from $46,629,000 in 2023, marking an increase of 19.8%[27] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $84,127,000, compared to $68,169,000 in 2023, reflecting a growth of 23.4%[30] - Total net sales for Q4 2024 reached $127.3 million, a 19.9% increase from $106.1 million in Q4 2023[34] - For the twelve months ended December 31, 2024, total net sales were $516.0 million, up 4.8% from $493.6 million in 2023[34] Cost and Margin Analysis - Gross margin for the full year improved to 39% from 37%, driven by net pricing improvements and product mix[9] - The outlook for 2025 includes expected gross margin between 35% and 37%, influenced by higher transportation costs and increased finished goods costs[18] - Gross profit for Q4 2024 was $41.3 million, compared to $39.8 million in Q4 2023, reflecting a gross margin of 32.4%[34] - The total gross margin for the twelve months ended December 31, 2024, improved to 38.5% from 36.6% in 2023[34] - The Americas segment gross margin decreased to 33.7% in Q4 2024 from 41.3% in Q4 2023, while the International segment improved to 24.7% from 13.8%[34] Expenses and Liabilities - SG&A expenses for the full year increased by 1% to $125 million, primarily due to personnel-related expenses[10] - Total liabilities increased to $103,564,000 as of December 31, 2024, from $83,245,000 in 2023, representing a rise of 24.4%[25] - The company incurred a bad debt expense of $1,603,000 in 2024, significantly higher than $260,000 in 2023[29] Cash and Assets - The company had cash and cash equivalents of $165 million as of December 31, 2024, with no debt reported[12] - Cash and cash equivalents at the end of the period were $165,933,000, up from $132,867,000 in 2023, showing an increase of 25.0%[29] - Total current assets as of December 31, 2024, were $341,291,000, compared to $262,937,000 in 2023, indicating a significant increase of 29.6%[25] Future Outlook and Strategy - The company expects fiscal year 2025 net sales to be between $555 million and $570 million, with Adjusted EBITDA projected between $86 million and $92 million[1] - The company plans to continue focusing on market expansion and new product development to drive future growth[27] - The Americas segment's cost of goods sold rose to $72.6 million in Q4 2024, up from $53.8 million in Q4 2023[34] Segment Performance - Vita Coco Coconut Water sales in the Americas segment increased by 28.2% to $81.3 million in Q4 2024 compared to $63.4 million in Q4 2023[34] - Private Label sales in the Americas segment showed a slight increase to $26.0 million in Q4 2024 from $25.8 million in Q4 2023[34] - The International segment's total net sales increased by 21.1% to $17.8 million in Q4 2024 from $14.6 million in Q4 2023[34]