The Vita Coco Company Reports Second Quarter 2025 Financial Results

Core Insights - The Vita Coco Company reported a net income increase of $4 million to $23 million for the second quarter of 2025, while Non-GAAP Adjusted EBITDA decreased by $3 million to $29 million [1][6][8] - The company raised its full-year net sales guidance, anticipating net sales between $565 million and $580 million, driven by high teens growth in Vita Coco Coconut Water and the rollout of Vita Coco Treats in the U.S. [12][15] Financial Performance - Net sales for the second quarter increased by $25 million, or 17%, to $169 million compared to $144 million in the prior year [5][6] - Gross profit rose to $61 million from $59 million in the prior year, but gross margin decreased to 36% from 41% due to higher ocean freight rates and costs [6][7] - Net income per diluted share was $0.38, up from $0.32 in the prior year [8][9] Segment Performance - Vita Coco Coconut Water net sales grew by 25% globally, with the Americas growing by 22% and international markets by 43% [4][5] - The Other category also contributed to growth, driven by the U.S. rollout of Vita Coco Treats, although private label sales decreased [5][6] Cost and Expenses - Selling, general, and administrative expenses increased to $36 million from $29 million, primarily due to higher marketing investments and personnel-related expenses [7][8] - The company experienced a decrease in gross margin, attributed to increased costs from freight and tariffs, partially offset by branded coconut water pricing [6][7] Balance Sheet and Cash Flow - As of June 30, 2025, the company maintained a strong financial position with no debt and cash and cash equivalents of $167 million [10] - Accounts receivable increased to $103 million from $63 million at the end of 2024, reflecting increased net sales [10] Share Repurchase Program - The Board approved a share repurchase program, increasing the authorized limit to $65 million, with $10.1 million repurchased year-to-date as of June 30, 2025 [11]