Vita Coco delivered a better-than-expected first quarter, which was met with a positive market reaction. Management attributed the strong results primarily to double-digit gains in coconut water sales, particularly in the U.S. and Europe, and a rebound in inventory levels that allowed for improved retail execution. CEO Martin Roper highlighted the impact of multipack offerings and new product innovations, saying, “Net sales in the quarter were up 17%, driven by growth of Vita Coco Coconut Water up 25%, benefiting from an acceleration of growth in the coconut water category and improvement in available inventory.”
Is now the time to buy COCO? Find out in our full research report (it’s free).
Vita Coco (COCO) Q1 CY2025 Highlights:
- Revenue: $130.9 million vs analyst estimates of $125.8 million (17.2% year-on-year growth, 4% beat)
- Adjusted EBITDA: $22.51 million vs analyst estimates of $16.78 million (17.2% margin, 34.1% beat)
- The company reconfirmed its revenue guidance for the full year of $562.5 million at the midpoint
- EBITDA guidance for the full year is $89 million at the midpoint, in line with analyst expectations
- Operating Margin: 14.7%, down from 17% in the same quarter last year
- Sales Volumes rose 20.5% year on year (-0.5% in the same quarter last year)
- Market Capitalization: $2.06 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Vita Coco’s Q1 Earnings Call
- Ethan Huntley (Goldman Sachs): Asked how management plans to mitigate tariff impacts. CEO Martin Roper detailed ongoing supplier negotiations, cost savings initiatives, and planned price increases, emphasizing the company’s flexibility and strong balance sheet.
- Kaumil Gajrawala (Jefferies): Inquired about supply chain capacity for long-term growth. Executive Chairman Mike Kirban said the company is expanding production lines and planning ahead, aiming for sustainable mid-teens growth rather than rapid scaling.
- Eric Serotta (Morgan Stanley): Sought clarity on the drivers behind higher finished goods costs and timing of planned price increases. Roper attributed cost increases to the addition of new factories and elevated freight rates, with incremental price hikes tied to ongoing tariffs.
- Jim Salera (Stephens): Asked about multipack sales growth and potential consumer stockpiling. Roper said multipack sales are driven by convenience and value, not short-term hoarding, with steady week-on-week growth.
- Michael Lavery (Piper Sandler): Questioned the timing and flexibility of shifting sourcing in response to potential future tariffs. Roper explained that reallocating supply to other regions can take 4–6 months for existing lines, while opening new facilities would require a year or more.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will watch (1) the effectiveness of summer pricing actions and promotions in maintaining volume growth, (2) the company’s ability to navigate and potentially mitigate further tariff or freight cost pressures, and (3) progress in rebuilding Walmart distribution and expanding international market presence. Additional attention will be paid to the success of new product rollouts and innovation initiatives.
Vita Coco currently trades at $35, up from $31.64 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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