Core Insights - Vita Coco is launching limited-edition Halloween mystery kits featuring its Treats flavors, Strawberries & Creme and Orange & Creme, along with costumes for Labubu dolls [1][2][4] - The kits will be available starting October 1, 2025, exclusively for Vita Coco loyalty members, and will include a Treats product, a Labubu costume, and a mini-Treats keychain [2][4] - The Treats line aims to provide a fun and guilt-free indulgence experience, enhancing the brand's portfolio of coconut water and juice-based beverages [3][4] Product Details - Each Halloween mystery kit will reveal either a Strawberries & Creme or an Orange & Creme inspired look [2][11] - The kits are designed to merge fun, flavor, and fandom, appealing to both consumers and collectors [2][4] Company Background - The Vita Coco Company, co-founded in 2004, is a leading coconut water brand in the U.S. and operates as a public benefit corporation and Certified B Corporation [6] - The company focuses on delivering healthy, nutritious, and great-tasting products, including its flagship coconut water and protein-infused water PWR LIFT [6]

Core Insights - Vita Coco, the leading coconut water brand in the U.S., has launched "Major League Hydration by Vita Coco," featuring elite athletes who endorse coconut water as their preferred hydration source for optimal performance [1][3]. Group 1: Product Benefits - Vita Coco Original Coconut Water contains 3.5 times the electrolytes compared to leading sports drinks, with 1149mg of electrolytes per 500ml versus approximately 292mg in competitors [3][7]. - The product is free from artificial dyes, making it a healthier choice for hydration among athletes [3]. Group 2: Athlete Endorsements - The campaign features a diverse lineup of athletes, including Travis Hunter (Football), Min Woo Lee (Golf), Amanda Anisimova (Tennis), and others, who emphasize the importance of hydration and the benefits of coconut water in their routines [2][5]. - Athletes have shared personal testimonials highlighting how Vita Coco aids in recovery and performance, with comments on its natural electrolytes and overall effectiveness [5]. Group 3: Company Background - The Vita Coco Company, co-founded in 2004, is a Certified B Corporation focused on delivering nutritious and great-tasting products [7]. - The brand has expanded its product line to include Coconut Juices and Vita Coco Treats, enhancing its offerings beyond just coconut water [6].

Core Insights - Vita Coco reported Q2 2025 results with GAAP revenue of $168.8 million and diluted earnings per share of $0.38, exceeding analyst estimates [1][2] - The company experienced strong sales growth driven by branded coconut water, but faced significant pressure on gross margins and profitability due to rising costs [1][7] Financial Performance - Net sales (GAAP) increased by 17% year-over-year, with the Americas segment contributing $141.961 million, up from $124.502 million [5] - Non-GAAP adjusted EBITDA decreased to $29.2 million from $32.2 million in the prior-year quarter, reflecting a 9.3% decline [2][7] - Gross margin (GAAP) narrowed to 36.3% from 40.8% the previous year, impacted by higher costs including ocean freight and a new 10% import tariff [7] Market Position and Strategy - Vita Coco holds over 40% market share in the U.S. coconut water category and 82% in the U.K., with a diverse product portfolio including coconut milk and protein-infused drinks [3] - The company's strategy focuses on brand leadership, an asset-light supply chain, and sustainability, with ongoing product innovation such as Vita Coco Treats [4][10] Sales Growth Drivers - Branded coconut water sales rose by 25%, while the "Other" category, including new products, more than doubled revenue from $2.9 million to $6.8 million year-over-year [5][9] - CE volume for branded coconut water increased by 22% in the Americas and 22.9% internationally, although private label products saw a decline of 34% [6] Future Outlook - The company raised its FY2025 net sales guidance to $565–$580 million, anticipating continued growth in branded coconut water and Treats [13] - Management expects gross margin to stabilize around 36% for FY2025, with potential improvements if costs decrease [13] - Non-GAAP adjusted EBITDA is projected at $86–$92 million for FY2025, amid ongoing margin pressures from input costs and tariffs [13]

Financial Data and Key Metrics Changes - Net sales increased by $25 million or 17% year over year to $169 million in Q2 2025 [19] - Vita Coco Coconut Water grew by 25%, while private label sales decreased by 25% [19] - Gross profit for the quarter was $61 million, an increase of $3 million compared to the prior year, with gross margins at 36%, down approximately 450 basis points from 41% in Q2 2024 [20][21] - Net income attributable to shareholders was $23 million or $0.38 per diluted share, compared to $19 million or $0.32 per diluted share for the prior year [21] Business Line Data and Key Metrics Changes - Vita Coco Coconut Water saw a 22% increase in net sales within The Americas, totaling $120 million, while private label sales decreased by 37% to $15 million [19] - International segment net sales increased by 37%, with Vita Coco Coconut Water growing by 43% [19] - Other products category, primarily from Vita Coco Treats, experienced 102% growth [11] Market Data and Key Metrics Changes - Coconut water category grew 20% year to date in the US and 35% in the UK [6] - Vita Coco Coconut Water grew 16% in retail dollars in the US and 39% in the UK year to date [7] - The international business, particularly in Europe, showed strong performance with increased investment leading to healthy growth and brand share wins [8] Company Strategy and Development Direction - The company aims to double the US coconut water category in the coming years, focusing on expanding household penetration and consumption occasions [9] - Continued investment in select European markets is planned to drive long-term growth [8] - The company is excited about the potential of innovative coconut milk-based beverages, which could create new usage occasions for growth [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current environment and highlighted strong category growth as a positive indicator for future growth [18] - The company expects gross margins to be approximately 36% for the full year, with SG&A growing in low to mid-single digits [25] - Management is optimistic about the performance of Vita Coco Treats and its contribution to overall growth [11] Other Important Information - The company raised its full-year net sales guidance to between $565 million and $580 million [24] - The effective tax rate for Q2 2025 was 19%, down from 25% the previous year, primarily due to discrete tax benefits [23] - The company has a strong balance sheet with total cash on hand of $167 million and no debt under its revolving credit facility [24] Q&A Session Summary Question: How much of the revenue growth is due to inventory rebuild versus same-store sales trends? - Management indicated that while retail scan data reflects healthy inventory, it does not solely represent easy comparisons, and Q3 will provide clearer insights [31] Question: Can you provide insights on the international business growth and its impact on SG&A? - Management confirmed that the international business is growing strongly, particularly in the UK and Germany, and SG&A is being invested strategically ahead of growth [35][37] Question: What are the expectations regarding private label sales moving forward? - Management noted that Q2 reflects known losses, and while private label is currently healthy, future trends may be turbulent due to easy comparisons from last year [70] Question: How are tariffs impacting the business outlook? - Management stated that they are currently operating under a 10% baseline tariff and are not including potential higher tariffs in their outlook, focusing instead on growth [60][84] Question: What is the strategy for marketing and category building in the US? - The company is targeting young multicultural consumers and focusing on sports drinks, with significant growth across all demographics [91]

Financial Data and Key Metrics Changes - Net sales increased by $25 million or 17% year-over-year to $169 million, driven by a 25% growth in Vita Coco Coconut Water [20][23] - Gross profit for the quarter was $61 million, an increase of $3 million compared to the prior year, with gross margins at 36%, down approximately 450 basis points from 41% in Q2 2024 [19][21] - Net income attributable to shareholders was $23 million or $0.38 per diluted share, compared to $19 million or $0.32 per diluted share for the prior year [20][21] Business Line Data and Key Metrics Changes - Vita Coco Coconut Water grew 25%, while the private label segment saw a decline of 25% [20][23] - The international segment reported a 37% increase in net sales, with Vita Coco Coconut Water growing 43% [18][19] - Other products, primarily from Vita Coco Treats, experienced a 102% growth [11] Market Data and Key Metrics Changes - Coconut water category grew 20% year-to-date in the US and 35% in the UK [5] - Vita Coco Coconut Water grew 16% in retail dollars in the US and 39% in the UK year-to-date [6] - The international business is expected to become a larger part of the consolidated growth story, with European operations potentially matching the size of the Americas business [9] Company Strategy and Development Direction - The company is focusing on expanding its product offerings, including Vita Coco multipacks, organic products, and the national launch of Vita Coco Treats [6][7] - There is a strong emphasis on increasing investments in select European markets to drive long-term growth [7][9] - The company aims to double the US coconut water category in the coming years, indicating significant long-term potential [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current environment, citing strong category growth and brand performance [25] - The company anticipates a strong third quarter due to improved inventory levels and reduced promotional activity from the previous year [14][23] - There is an expectation of gross margins improving sequentially in Q4, despite short-term pressures from tariffs and freight rates [24][80] Other Important Information - The effective tax rate for Q2 2025 was 19%, down from 25% the previous year, primarily due to discrete tax benefits [21] - The company raised its full-year net sales guidance to between $565 million and $580 million [23][24] - Management is focused on maintaining strong branded growth momentum into 2026 [24] Q&A Session Summary Question: How much of the revenue growth is due to inventory rebuild versus same-store sales trends? - Management indicated that while retail scan data reflects healthy inventory, it is not solely due to easy comparisons from the previous year [28][29] Question: Can you provide insights on the contribution of Vita Coco Treats? - Vita Coco Treats was rolled out nationally at the end of Q1, contributing positively to total branded scan volumes [30][31] Question: What are the expectations for gross margins and EBITDA guidance? - Management noted that gross margins are expected to be approximately 36%, with some pressures from higher ocean freight rates and tariffs impacting the outlook [41][44] Question: How is the company addressing potential higher tariffs? - The company is currently operating under a 10% baseline tariff and is focused on growth while preparing for potential changes in tariff rates [59][60] Question: What is the strategy for private label sales moving forward? - Management acknowledged the complexity of private label sales but indicated that Q2 reflects known losses, with expectations for modest growth in the future [68][70] Question: What is the timing for Walmart's shelf resets? - The expected timing for Walmart's shelf resets is around September to October, with clarity anticipated in early Q4 [72][73]

Net Sales Increased 17% to $169 million driven by Vita Coco Coconut Water growth of 25% Net Income Increased $4 million to $23 million and Non-GAAP Adjusted EBITDA Decreased $3 million to $29 million Company Raises Full Year Net Sales Guidance Gross profit increased to $61 million, from $59 million in the prior year period. The increase was driven by higher CE volume partially offset by the decreased gross margin. Gross margin was 36% compared to 41% in the prior year period. The decrease in gross margin re ...

Financial Data and Key Metrics Changes - In Q1 2025, net sales increased by $19 million or 17% year-over-year to $131 million, driven by a 25% growth in Vita Coco coconut water net sales [22][24] - Gross profit for the quarter was $48 million, an increase of $1 million compared to the prior year, with gross margins at 37%, down approximately 550 basis points from 42% in Q1 2024 [23][24] - Net income attributable to shareholders was $19 million or $0.31 per diluted share, compared to $14 million or $0.24 per diluted share in the prior year [24] Business Line Data and Key Metrics Changes - Vita Coco coconut water net sales increased by 25%, while private label sales decreased by 12%, with private label coconut water experiencing a 10% growth offset by a decline in coconut oil [22][24] - The other product category saw an 84% growth, primarily due to the positive impact from Vita Coco treats [15][24] - In the Americas, Vita Coco coconut water net sales increased by 24% to $86 million, while private label decreased by 13% to $21 million [22] Market Data and Key Metrics Changes - Vita Coco coconut water grew by 20% in retail dollars in the US and 21% in the UK during Q1 2025 [10] - The coconut water category is one of the fastest-growing beverage categories, with growth rates of 23% in the US and 19% in the UK [9][10] - The international segment reported a 17% increase in net sales, with Vita Coco coconut water growing by 36% across major markets [23] Company Strategy and Development Direction - The company aims to grow the Vita Coco brand by expanding the coconut water category and innovating around core offerings [8] - International growth is a priority, with significant investments planned for the UK, Germany, and other European markets [13] - The company is exploring innovation in adjacent categories and potential M&A opportunities to enhance shareholder value [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the coconut water growth trajectory, citing a strong inventory position and positive retail programming [14][21] - The company anticipates that the coconut water category will continue to grow, with expectations of doubling the category in the coming years [13] - Management is confident in navigating the current environment, including potential tariff impacts, due to a diversified sourcing strategy [20][21] Other Important Information - The company has a strong balance sheet with total cash on hand of $154 million and no debt under its revolving credit facility [26] - The board approved an additional $25 million for share repurchases, increasing the total authorization to $65 million [26][27] - The company expects net sales for the full year 2025 to be between $555 million and $570 million, with gross margins projected at 35% to 37% [27][28] Q&A Session Summary Question: Can you elaborate on your mitigation efforts regarding tariffs? - Management indicated that they entered the year with healthy inventory, which helps delay tariff impacts. Mitigation efforts include continuous cost improvements and potential pricing adjustments to offset tariff costs [34][35][36] Question: What is the expected impact of pricing on demand? - Management plans to take pricing to cover the unmitigated costs of tariffs, with expectations that the category's health will support consumer acceptance of price increases [41][42][56] Question: How is the company planning to grow internationally? - The company is investing in both marketing and supply chain resources to support growth in international markets, emphasizing the need for boots on the ground to establish relationships with retailers [89][90] Question: What are the drivers behind higher finished goods costs? - Higher finished goods costs are attributed to new factory setups and increased ocean freight rates compared to the previous year [59][63][65] Question: How flexible is the company in adjusting sourcing in response to tariffs? - The company is well-positioned to adapt sourcing strategies, with a lead time of 12 to 24 months for new factories, but can reallocate supply more quickly between markets [97][100][102]

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]