Vita Coco’s Q3 Report Beats on Earnings and Revenue

Core Insights - Vita Coco Company reported strong Q3 financials, with adjusted EPS of $0.40 beating the consensus estimate of $0.31 and revenue of $182.0 million surpassing expectations of $158.5 million, leading to a 3% stock gain post-release [1][8] Financial Performance - Revenue grew by 37% year over year, significantly exceeding the company's prior guidance, indicating robust demand [6] - Adjusted EBITDA increased to $32 million, up $9 million from the previous year, while net income rose to $24 million, a $5 million improvement year over year [3][8] - Gross profit reached $69 million, highlighting contributions from both pricing and volume [6][8] Segment Performance - Vita Coco Coconut Water segment experienced a 42% year-over-year growth, driven by strong consumer demand and effective operational execution [2][8] - The company anticipates high teens growth for the Coconut Water brand through 2025, reflecting sustained momentum [2][4] Guidance and Outlook - Full-year 2025 net sales guidance was raised to a range of $580 million to $595 million, with adjusted EBITDA guidance now at $90 million to $95 million [4] - CEO Martin Roper emphasized that the increased guidance is based on strong shipment performance and demand trends [4] Capital Allocation - The company holds a solid financial position with $204 million in cash and equivalents against $323.7 million in shareholders' equity [7] - A $65 million share repurchase program has been authorized, with $42 million remaining, indicating confidence in intrinsic value [7] Market Position - The stock is trading near 52-week highs, with institutional ownership at 80%, reflecting broad confidence in the company's execution [10] - Forward earnings estimates suggest continued growth acceleration, leaving limited margin for disappointment in future quarters [10]