The Vita Coco Company (COCO) Q4 2024 earnings summary

Executive summary

• Achieved record annual net sales of $516 million and net income of $56 million in 2024, with Adjusted EBITDA rising to $84 million despite supply chain challenges and private-label declines.

• Q4 2024 net sales grew 20% to $127 million, with strong shipment performance aided by inventory rebuilding and expanded retailer distribution.

• Vita Coco Coconut Water delivered double-digit volume and dollar growth, maintaining over 41% U.S. market share and leading the category.

• Continued innovation with successful launches of Vita Coco Juice and Treats, and extended distribution agreement with Keurig Dr Pepper.

• Ended 2024 with $165 million in cash and no debt.

Financial highlights

• Full-year 2024 net sales increased 5% to $516 million, driven by 10% growth in Vita Coco Coconut Water and offset by private-label declines.

• Q4 gross margin declined to 32% due to higher ocean freight, but full year gross margin improved to 39% from 37% in 2023.

• Full year net income was $56 million ($0.94 per diluted share), up from $47 million in 2023.

• Adjusted EBITDA reached $84 million (16% of net sales), up from $68 million (14%) in 2023.

• Cash on hand at year-end was $165 million, with no debt.

Outlook and guidance

• 2025 net sales expected between $555 million and $570 million, with gross margins of 35%-37% and Adjusted EBITDA of $86-$92 million.

• Anticipates mid-teens category growth, with branded performance tracking the category and new product rollouts.

• Expects private-label service area reductions to partially offset branded growth.

• SG&A to rise low to mid-single digits as marketing and people investments increase.

• Guidance excludes potential tariff impacts; macroeconomic and geopolitical risks could affect results.