Vita Coco recently released its 10-K report, revealing a business that has evolved from pioneering packaged coconut water in 2004 to extending its reach into other categories. The company's branded portfolio is led by the Vita Coco brand, which is the leader in the coconut water category in the U.S., and also includes coconut oil, juice, and milk offerings. Vita Coco also supplies private label products to retailers and generates revenue from bulk product sales to beverage and food companies. The company's supply chain is a fixed asset-lite model designed to better react to changes in the market or consumer preferences. Vita Coco is available in over 35 countries, with primary markets in North America, the United Kingdom, and Germany.
The 10-K report discusses the years ended December 31, 2025, and 2024, and year-over-year comparisons between the two years. Vita Coco's revenue is primarily generated through the sale of its branded coconut water, private label, and other products in the Americas and International segments. The company's gross profit is affected by various factors, including the mix of products sold, the channel through which products are sold, the promotional environment, manufacturing costs, exchange rates, commodity prices, and transportation rates. Vita Coco's management believes that gross margin provides investors with useful information related to the profitability of the business before considering all operating costs incurred.
The report also highlights the risks associated with Vita Coco's supply chain and shipping, including international supply chain inflation, particularly ocean freight, and the impact of geopolitical and economic instability on the company's global supply chain. Moreover, the report emphasizes the importance of consumer demand and relationships with key customers, as well as the company's ability to generate growth through product innovation and successfully execute both in-store and online operations. Lastly, the report addresses Vita Coco's operating expenses, including selling, general, and administrative expenses, and other income (expense), such as unrealized gains or losses on derivative instruments and foreign currency gains or losses. As a result of these announcements, the company's shares have moved 1.57% on the market, and are now trading at a price of $53.54. Check out the company's full 10-K submission here.
