Functional beverage firm The Vita Coco Company has reported year-on-year net sales growth of 3%, to $144 million (€132.96 million), in the second quarter of its financial year.
Net sales growth for the Vita Coco Coconut Water brand increased by 4% in the second quarter and 3% year-to-date, the company noted.
This performance was driven by improved volume and net pricing of Vita Coco Coconut Water and growth in private label case equivalent volume.
Gross profit for the quarter amounted to $59 million (€54.5 million), reflecting an increase of $8 million (€7.4 million).
For the year-to-date period, gross profit reached $106 million, up $21 million (€19.4 million) compared to the same period last year.
'Strong Performance'
Michael Kirban, co-founder and executive chair of Vita Coco, stated, “Our focus and investment to expand consumption occasions for coconut water contributed to strong performance for the category and for our flagship Vita Coco Coconut Water brand, which year-to-date has grown 11% in dollar sales in Circana US MULO+C measured channels.
“Importantly, during the quarter, we saw growth rate acceleration in the US retail scan data for our brand which grew 14%. [...] The coconut water category remains very healthy and one of the fastest-growing categories in US beverages. Our team continues to deliver strong results at retail across our major markets.”
Non-GAAP adjusted EBITDA for the second quarter increased to $32 million (€29.6 million) from $24 million (€22.2 million) in the year-ago period.
The company attributed this growth to improved finished goods and transportation costs, higher Vita Coco Coconut Water net pricing, price/mix effects in private labels, and increased net sales.
Outlook
Vita Coco expects full-year net sales to range between $500 million (€461.7 million) and $510 million (€470.9 million), and adjusted EBITDA in the range of $76 million (€70.2 million) to $82 million (€75.7 million).
Full-year gross margin is projected to be between 37% and 39% with adverse impact from recent increases on certain ocean freight routes in the second half.
Vita Coco chief executive, Martin Roper, added, “Based on a continuation of current trends, we are reaffirming our full-year guidance, and we expect the flow of product should allow us to rebuild retail and distributor inventories to more normal levels by the end of the year, which we believe sets us up for a strong 2025. We remain focused on driving long-term growth of the coconut water category and our brands.”
The company also cautioned that uncertainty and instability of the current operating environment, global economies, and geopolitical landscape could affect its outlook and future performance.
