The Vita o pany(US:COCO)2024-02-28 16:00Financial Performance - Net sales increased by $65.8 million, or 15.4%, to $493.6 million for the year ended December 31, 2023, compared to $427.8 million for the year ended December 31, 2022 [350]. - Gross profit rose by $77.4 million, or 74.9%, to $180.7 million for the year ended December 31, 2023, from $103.4 million in 2022 [350]. - Income from operations increased significantly by $53.4 million to $56.5 million for the year ended December 31, 2023, compared to $3.1 million in 2022 [350]. - Net income surged by $38.8 million, or 496.7%, to $46.6 million for the year ended December 31, 2023, from $7.8 million in 2022 [350]. - Adjusted EBITDA for 2023 was $68,169 thousand, compared to $20,294 thousand in 2022, reflecting a growth of 236% [396]. Sales Breakdown - The Americas segment net sales increased by $56.6 million, or 15.2%, to $430.2 million for the year ended December 31, 2023 [352]. - Private Label net sales increased by $15.0 million, or 17.0%, to $103.2 million for the year ended December 31, 2023, driven by significant CE volume growth of 24.7% [355]. - International net sales increased by $9.2 million, or 17.0%, to $63.4 million for the year ended December 31, 2023, with notable growth in the EMEA region [356]. - The International Segment's Private Label net sales increased by $5.9 million, or 45.6%, to $18.7 million for the year ended December 31, 2023 [384]. Cost and Expenses - Cost of goods sold decreased by $11.5 million, or 3.6%, to $312.9 million for the year ended December 31, 2023, primarily due to lower transportation costs [359]. - Selling, general, and administrative (SG&A) expenses rose by $23.9 million, or 23.9%, to $124.2 million for the year ended December 31, 2023, primarily due to increased marketing and personnel-related expenses [388]. - Stock-based compensation increased to $9,128 thousand in 2023 from $7,384 thousand in 2022, marking a rise of 24% [396]. Profitability Metrics - Gross margin improved to 36.6% for the year ended December 31, 2023, compared to 24.2% in 2022 [358]. - The effective tax rate decreased to 19.5% for the year ended December 31, 2023, down from 27.9% in 2022, primarily due to lower statutory tax rates in foreign jurisdictions [393]. Cash Flow and Liquidity - Cash from operating activities increased by $118 million to $107.2 million for the year ended December 31, 2023, driven by higher net income and improvements in working capital [375]. - The company had $132.5 million in cash and cash equivalents as of December 31, 2023, up from $19.6 million in 2022 [371]. - The company believes that current cash, cash equivalents, and future cash flows will be sufficient to meet anticipated cash needs for at least 12 months [397]. - The outstanding balance on the Revolving Facility was zero as of December 31, 2023, indicating no reliance on this credit line [402]. Interest and Financing - Interest income increased significantly to $2.6 million for the year ended December 31, 2023, compared to $51,000 in 2022 [350]. - Interest expense for the year ended December 31, 2023, was $31 thousand, a decrease from $258 thousand in 2022 [396]. - The company may seek additional equity or debt financing in the future to support product development and market expansion [372]. - The company is currently subject to an unused commitment fee ranging from 0.10% to 0.20% on the unused amount of the line of credit, based on its leverage ratio [401]. Other Financial Items - For the year ended December 31, 2023, the company recorded an unrealized loss of $0.9 million related to outstanding derivative instruments, compared to an unrealized gain of $6.6 million in 2022 [362]. - The company recognized a foreign currency gain of $251 thousand in 2023, compared to a loss of $1,387 thousand in 2022 [396]. - The company reported a decrease in cash used in investing activities by $0.4 million, attributed to reduced expenditures for property and equipment [400]. - Future minimum commitments under noncancelable operating leases amount to $1.7 million as of December 31, 2023 [403].