The Vita o pany(COCO) - 2025 Q2 - Quarterly Results

Financial Performance - Net sales increased 17% to $169 million in Q2 2025, driven by a 25% growth in Vita Coco Coconut Water[1][4] - Net income rose to $23 million, or $0.38 per diluted share, compared to $19 million, or $0.32 per diluted share in the prior year[4][8] - Gross profit was $61 million in Q2 2025, an increase of $3 million, with a gross margin of 36% compared to 41% in the prior year[4][6] - Net sales for Q2 2025 reached $168.8 million, a 17.1% increase from $144.1 million in Q2 2024[26] - Gross profit for the first half of 2025 was $109.4 million, compared to $105.9 million in the same period of 2024, reflecting a gross margin of 36.5%[26][32] - Net income for the six months ended June 30, 2025, was $41.8 million, up 25.5% from $33.3 million in 2024[28] - Adjusted EBITDA for Q2 2025 was $29.2 million, compared to $32.2 million in Q2 2024, while for the first half, it was $51.7 million versus $53.5 million in 2024[29] Guidance and Expectations - The company raised its full-year net sales guidance to between $565 million and $580 million, anticipating high teens growth in Vita Coco Coconut Water[1][13] - The company expects gross margin to remain around 36% for the full year, impacted by higher transportation and finished goods costs[1][13] Expenses and Costs - SG&A expenses increased to $36 million, up from $29 million in the prior year, primarily due to higher marketing and personnel costs[4][7] - Operating expenses increased to $64.9 million for the first half of 2025, compared to $57.0 million in 2024[26] Cash and Assets - Cash and cash equivalents as of June 30, 2025, were $167 million, with no debt and healthy inventory levels of $84 million[4][9] - Cash and cash equivalents at the end of Q2 2025 were $168.3 million, up from $150.4 million at the end of Q2 2024[28] - Accounts receivable increased to $103 million from $63 million as of December 31, 2024, reflecting increased net sales[4][9] Product and Market Development - The company plans to continue the national rollout of Vita Coco Treats in the U.S., which began in late Q1 2025[1][3] - The Americas segment saw a 20.6% increase in volume for Vita Coco Coconut Water in Q2 2025 compared to Q2 2024[32] - The company reported a 12.2% increase in total volume for the Americas segment in Q2 2025 compared to the same quarter in 2024[32] Foreign Currency and Shares - The company experienced a foreign currency gain of $1.1 million in the first half of 2025, compared to a loss of $0.1 million in 2024[26] - The weighted-average number of diluted shares outstanding increased to 59.6 million in Q2 2025 from 59.2 million in Q2 2024[26]