The Vita Coco Company, Inc. (NASDAQ:COCO) has reported its financial results for the second quarter ended June 30, 2024. The company's net sales increased by 3% to $144 million, with the Vita Coco coconut water experiencing a growth of 4%. The net income also saw a $1 million increase to $19 million, and non-GAAP adjusted EBITDA increased by $8 million to $32 million.
In terms of year-to-date 2024 highlights, net sales grew 3% to $256 million, while Vita Coco coconut water net sales grew by 4%. Gross profit stood at $106 million, reflecting an increase of $21 million. The gross margin was 41% of net sales compared to 34% in the prior year period. Net income for the year-to-date period was $33 million compared to $25 million. The net income per diluted share was $0.57, showing an increase compared to the prior year period.
Michael Kirban, the company's co-founder and executive chairman, expressed pride in the team's performance, attributing the strong financial results to the company's focus and investment in expanding consumption occasions for coconut water. Martin Roper, the company’s chief executive officer, highlighted the challenges faced due to temporary headwinds in ocean freight availability and transit times, which impacted inventory levels.
The company's balance sheet as of June 30, 2024, showed cash and cash equivalents of $150 million, an increase from $133 million as of December 31, 2023, with no debt reported for the same periods. The company had repurchased a total of 421,544 shares for an aggregate value of $10 million at an average share price of $23.72 as of June 30, 2024.
Looking ahead, the company reaffirmed its full-year guidance, expecting net revenue to range between $500 million and $510 million and adjusted EBITDA to be between $76 million and $82 million. Notably, the company's guidance mentioned potential adverse effects on gross margins in the second half of the year due to recent increases on certain ocean freight routes.
In addition to disclosing results determined in accordance with U.S. GAAP, the company also disclosed certain non-GAAP results of operations, including adjusted EBITDA, which is a key metric used by management and the board of directors to assess financial performance across reporting periods.
The company will host a conference call and webcast to discuss these results, providing an opportunity for stakeholders to gain further insights into the company's performance.
The Vita Coco Company, Inc. is a leading high-growth platform of better-for-you beverage brands, including its flagship coconut water brand Vita Coco, sustainably packaged water Ever & Ever, and protein-infused water PWR LIFT. The company was co-founded in 2004 and is a public benefit corporation and certified B Corporation. As a result of these announcements, the company's shares have moved 4.0% on the market, and are now trading at a price of $24.63. For more information, read the company's full 8-K submission here.
