Vita Coco Q4 sales beat estimates

Overview

• Beverage brand's Q4 net sales of $128 mln beat analyst expectations

• EPS for Q4 missed analyst expectations

• Full-year net sales rose 18%, driven by Vita Coco Coconut Water growth

Outlook

• Vita Coco expects 2026 net sales between $680 mln and $700 mln

• Company anticipates 2026 adjusted EBITDA between $122 mln and $128 mln

• Vita Coco projects 2026 gross margin at approximately 38%

Result Drivers

• COCONUT WATER GROWTH - Vita Coco Coconut Water sales grew 10% in Q4 and 26% for the full year, driven by increased household penetration and new consumption occasions, according to Co-Founder Michael Kirban

• PRICING AND PRODUCT MIX - Higher pricing and favorable product mix boosted gross profit, despite lower overall volume and higher costs

• SG&A REDUCTION - Lower SG&A expenses, mainly due to decreased marketing and bad debt expenses, supported net income growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 3 "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 $59.00, about 4.4% above its February 17 closing price of $56.52

• The stock recently traded at 37 times the next 12-month earnings vs. a P/E of 32 three months ago

Press Release: ID:nGNX7cRt9z

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