In This Article:
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Net Sales: Increased 5% year over year to $516 million for the full year 2024.
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Vita Coco Coconut Water Net Sales: Grew 10% for the full year 2024.
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Private Label Sales: Declined 10% for the full year 2024.
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Gross Profit: $199 million for the full year 2024, up $18 million from the prior year.
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Gross Margin: 39% for the full year 2024, up 191 basis points from 2023.
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Net Income: $56 million or $0.94 per diluted share for the full year 2024.
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Adjusted EBITDA: $84 million or 16% of net sales for the full year 2024.
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Cash on Hand: $165 million as of December 30, 2024.
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2025 Net Sales Guidance: Expected between $555 million and $570 million.
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2025 Gross Margin Guidance: Expected between 35% and 37%.
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2025 Adjusted EBITDA Guidance: Expected between $86 million and $92 million.
Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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The Vita Coco Co Inc (NASDAQ:COCO) reported record annual net sales, net income, and adjusted EBITDA for 2024, driven by strong growth in the coconut water category.
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Coconut water category showed double-digit volume growth in major markets, with household adoption in the US increasing by 9% and household buy rate by over 77%.
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The Vita Coco brand experienced 9% retail dollar growth in the US and 21% in the UK, outpacing category growth in these regions.
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The introduction of the Vita Coco coconut water 1 litre pack into a key convenience store chain was highly successful, indicating consumer demand for larger packages.
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The company has secured additional production capacity for 2025 and 2026, providing greater supply chain flexibility and supporting anticipated growth.
Negative Points
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The Vita Coco Co Inc (NASDAQ:COCO) faced significant inventory shortages in the summer due to limited ocean container availability, impacting third-quarter shipments and service levels.
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Fourth-quarter gross margins decreased due to more expensive ocean freight costs, and ocean rates remain elevated entering 2025.
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The company expects to lose some regions with certain private label retailers in 2025 due to previous inventory constraints affecting service levels.
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Walmart's store reset resulted in a significant reduction in SKUs and space for Vita Coco, causing mid-teen declines in weekly store sales.
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The company anticipates higher finished goods costs and elevated ocean freight rates in the first half of 2025, impacting gross margins.
Q & A Highlights
Q: How fast do you expect the coconut water category to grow this year, and what initiatives do you have to increase household penetration and drive growth? A: Martin Roper, CEO, expects the category to grow long-term in high single digits to low double digits in North America, with international markets growing even faster. The company plans to grow its brand in the mid-teens range this year. Initiatives include education, trial, brand appeal, social media marketing, innovation, and retail execution to increase household penetration and drive growth.