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, with Vita Coco expanding its US coconut water market share to 41%.

• Net income rose 33% to $19 million ($0.31 per diluted share), with adjusted EBITDA up to $23 million, reflecting higher gross profit.

• Gross margin declined to 37% from 42% last year due to higher ocean freight and finished goods costs.

• The company reaffirmed its full-year guidance, expecting continued strong category momentum, robust inventory, and expanded production capacity to support growth.

• Maintained strong liquidity with $154 million cash and no debt.

Financial highlights

• Q1 2025 net sales increased by $19 million to $131 million, with branded coconut water up 25% and private label down 12%.

• Gross profit rose to $48 million, but gross margin declined to 37% from 42% due to higher freight and product costs.

• Net income attributable to shareholders was $19 million ($0.31 per diluted share), up from $14 million ($0.24 per share) in Q1 2024.

• Adjusted EBITDA reached $23 million (17% of net sales), up from $21 million (19% of net sales) last year.

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

Outlook and guidance

• Full-year 2025 net sales expected between $555–$570 million, gross margins of 35–37%, and adjusted EBITDA of $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 sales expected to decline due to lost regions, with impact more visible in Q2.

• Guidance assumes a 10% baseline U.S. tariff but excludes potential reciprocal tariffs; expects ocean freight rates to soften in the second half.

• Ongoing macroeconomic uncertainty, including inflation and geopolitical instability, may affect future results.