The Vita Coco Company (COCO) Q1 2025 earnings summary

Executive summary

• Net sales grew 17% year-over-year to $131 million in Q1 2025, led by 25% growth in branded coconut water and strong innovation performance.

• Net income rose 33% to $19 million ($0.31 per diluted share), with adjusted EBITDA up to $22.5 million from $21.2 million.

• Gross margin declined to 37% from 42% in Q1 2024 due to higher finished goods and ocean freight costs.

• Strong demand and market share gains in the U.S., U.K., and Germany, with international markets showing robust growth.

• The company reaffirmed its full-year 2025 outlook and continues to execute on branded growth, innovation, and international expansion.

Financial highlights

• Q1 2025 net sales reached $131 million (+17% year-over-year); gross profit was $48 million (37% margin, down from 42%).

• Adjusted EBITDA was $22.5 million (17% of net sales), up from $21.2 million in Q1 2024.

• Net income attributable to shareholders was $19 million ($0.31 per diluted share), up from $14 million ($0.24 per share) last year.

• SG&A expenses increased 2% to $28.8 million, mainly from higher personnel and overlapping rent expenses.

• Cash and cash equivalents at quarter-end were $154 million, with no debt outstanding.

Outlook and guidance

• Full-year 2025 net sales expected between $555–$570 million, gross margin 35–37%, and adjusted EBITDA $86–$92 million.

• Branded coconut water sales projected to grow mid to high teens, with incremental growth from new products like Vita Coco Treats.

• Private label coconut water sales expected to decline due to lost regions, with impact more visible in Q2.

• Guidance assumes 10% baseline U.S. tariffs, with no impact from potential reciprocal tariffs included.

• SG&A expected to rise low to mid-single digits, reflecting increased marketing and international investment.