The Vita Coco Company Reports Strong Fourth Quarter and Full Year 2024 Financial Results

Financial Performance - Fourth quarter net sales increased by 20% to $127 million, contributing to a full year net sales increase of 5$516 million, driven by a 10% growth in Vita Coco Coconut Water [1][4][7] - Full year net income rose by $9 million to$56 million, with non-GAAP adjusted EBITDA increasing by $16 million to$84 million [1][12][13] - For fiscal year 2025, the company expects net sales between $555 million and$570 million, with adjusted EBITDA projected between $86 million and$92 million [1][16] Gross Profit and Margins - Gross profit for the fourth quarter was $41 million, up from$40 million in the prior year, but gross margin decreased to 32% from 38% due to increased ocean freight costs [5][7] - Full year gross profit increased by $18 million to$199 million, with a gross margin of 39%, up from 37% in the previous year, primarily due to improved net pricing for Vita Coco Coconut Water [10][12] Expenses and Income - Selling, general and administrative (SG&A) expenses for the fourth quarter increased to $37 million from$34 million, largely due to a bad debt expense related to a supplier [6][11] - Net income for the fourth quarter was $3 million, down from$7 million in the prior year, with net income per diluted share at $0.06 compared to$0.11 [6][12] Market Position and Growth Drivers - The coconut water category is one of the fastest-growing segments in the beverage industry, with Vita Coco positioned as a category leader [3] - The company anticipates continued growth momentum into 2025, supported by normal inventory levels and the national launch of Vita Coco Treats [3][16] Balance Sheet and Cash Position - As of December 31, 2024, the company had cash and cash equivalents of $165 million, an increase from$133 million the previous year, with no debt reported [14][15] - The company has repurchased a total of 534,246 shares for an aggregate value of $12.8 million under a share repurchase program [15]