The Vita Coco Company Reports Strong First Quarter 2025 Financial Results

Core Insights - The Vita Coco Company reported a 17% increase in net sales to $131 million for Q1 2025, driven by a 25% growth in Vita Coco Coconut Water sales [5][9] - Net income rose to $19 million, up from $14 million in the prior year, with Non-GAAP Adjusted EBITDA increasing to $22.5 million [8][9] - The company reaffirmed its full-year outlook, expecting continued growth in the coconut water category and the rollout of new products [12][4] Financial Performance - Net sales increased by $19 million, or 17%, to $131 million compared to $112 million in the prior year [5][9] - Gross profit rose to $48 million from $47 million, but gross margin decreased to 37% from 42% due to higher ocean freight rates and finished goods costs [6][9] - Selling, general and administrative expenses were $29 million, up from $28 million, primarily due to increased personnel-related expenses [7] Earnings and Profitability - Net income for Q1 2025 was $19 million, or $0.31 per diluted share, compared to $14 million, or $0.24 per diluted share in the prior year [8][9] - Non-GAAP Adjusted EBITDA was $22.5 million, an increase from $21.2 million in the prior year, mainly due to higher gross profit [8][9] Market and Product Insights - The coconut water category is experiencing strong growth, particularly in the U.S., U.K., and Germany, with the Americas growing 24% and International growing 36% [4] - The company is focusing on increasing household adoption and new consumption occasions, supported by a strong inventory position [4] - The rollout of Vita Coco Treats is expected to contribute to growth, with the company securing sufficient capacity to meet demand [4][12] Balance Sheet and Cash Flow - As of March 31, 2025, the company had cash and cash equivalents of $154 million and no debt, with inventory levels improving to $88 million from $84 million [10] - The company repurchased $10.1 million of its common stock year-to-date as part of its share repurchase program [11] Full Year Outlook - The company expects net sales for fiscal year 2025 to be between $555 million and $570 million, with projected growth in Vita Coco Coconut Water in the mid to high teens [16] - Gross margin is anticipated to be between 35% and 37%, influenced by higher transportation and finished goods costs [16]