The Vita o pany(US:COCO)2025-04-30 12:34Financial 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]