Vita Coco beaats Q2 sales estimates, raises FY sales forecast
Overview
Vita Coco Q2 net sales rise 17% to $169 mln, beating estimates
Adjusted EBITDA for Q2 beats analyst expectations, despite higher SG&A expenses
Company raises full-year net sales guidance
Outlook
Company raises full-year net sales guidance to $565 mln-$580 mln
Vita Coco Coconut Water growth expected in high teens for full year
Company anticipates full-year gross margin of approximately 36%
Adjusted EBITDA forecasted between $86 mln and $92 mln for full year
Result Drivers
COCONUT WATER GROWTH - Vita Coco Coconut Water sales increased 25% globally, with 22% growth in the Americas and 43% internationally, driving overall net sales growth
GROSS MARGIN DECLINE - Gross margin fell to 36% from 41% due to higher ocean freight rates, finished goods costs, and import tariffs, despite favorable product mix and pricing
SG&A EXPENSES - Higher SG&A expenses, driven by increased marketing investment and personnel costs, impacted adjusted EBITDA
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Beat | $169 mln | $161 mln (8 Analysts) |
Q2 EPS |
| $0.38 |
|
Q2 Net Income |
| $23 mln |
|
Q2 Adjusted EBITDA | Beat | $29 mln | $28.50 mln (7 Analysts) |
Q2 Gross Margin |
| 36.0% |
|
Q2 Gross Profit |
| $61 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the non-alcoholic beverages peer group is "buy"
Wall Street's median 12-month price target for Vita Coco Company Inc is $40.00, about 8.1% above its July 29 closing price of $36.77
The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 27 three months ago
Press Release: ID:nGNX4TsMMj
