Vita Coco Q2 sales jump 28% to $216M, lifts guidance

Vita Coco reported Q2 net sales of $216 million, up 28 percent from a year earlier, beating the $210 million consensus estimate.

"The coconut water category maintained very strong growth during the quarter, and continues to be one of the fastest growing beverage categories in our major markets," Michael Kirban, co-founder and executive chairman of Vita Coco, said.

Diluted earnings per share came in at 82 cents, topping the 55-cent consensus estimate by about 50 percent. Net income more than doubled to $49 million from $23 million a year earlier. Gross margin expanded to 48.7 percent from 36.3 percent, helped by tariff refunds, higher pricing and lower ocean freight costs. Vita Coco Coconut Water case-equivalent volumes rose 15 percent, while private label volumes surged 78 percent.

The company raised its full-year net sales forecast to between $790 million and $805 million and its adjusted EBITDA outlook to between $154 million and $161 million. Shares rose after hours following the beat.

International sales surged 63 percent to $43.7 million, with Vita Coco Coconut Water volumes in the segment jumping 60 percent. The Americas segment posted $172.5 million in revenue, up 21 percent, led by branded retail growth and private label distribution gains. Private label case-equivalent volumes in the Americas rose 82 percent. Gross margin in the Americas expanded to 51.8 percent from 36 percent, while international gross margin was 36.7 percent.

Selling, general and administrative expenses increased to $42 million from $36 million, driven by higher incentive compensation, headcount growth and investments in sales and marketing. The company's cash from operations reached $96.5 million in the first half, up from $12 million a year earlier, reflecting the sharp improvement in profitability. Income tax expense rose to $14.9 million from $5.3 million.

The company ended the quarter with $279 million in cash and no debt. Inventory fell to $83 million from $111 million at the start of the year, reflecting strong year-to-date shipments. Vita Coco repurchased $20 million of its stock during the first half, and the board authorized an additional $40 million buyback on July 21, bringing the total program to $105 million.

On July 22, Vita Coco acquired Copra Inc., a producer of super-premium Thai Nam Hom coconut water, for $175 million in upfront consideration plus potential earnout payments. Copra expects 2026 net sales above $100 million and has grown at a 48 percent compound annual rate over the past three years. The deal gives Vita Coco a factory in Thailand with access to Nam Hom coconuts and entry into the fast-growing cold-chain segment.

The guidance raise shows management expects continued brand momentum across major markets. Investors will watch the next quarterly report for Copra's contribution and gross margin trajectory in the second half.

This article is for informational purposes only and does not constitute investment advice.