Vita Coco Reports Strong Earnings Growth Amid Market Expansion
- Hardik Shah
- Feb 26
- 3 min read
TL;DR
Financial Performance: Q4 net sales surged 20% to $127M, with full-year revenue reaching $516M (+5% YoY). Adjusted EBITDA increased to $84M (+23%).
Market & Operational Trends: Strong coconut water demand, retail expansion, and international growth in the UK and Germany.
Future Growth Drivers: New product launches, improved inventory levels, and an increased focus on hydration marketing.
Vita Coco Earnings
Vita Coco, a leader in the coconut water industry, reported record-breaking financial performance in 2024.
Q4 net sales increased by 20% to $127M, driven by a 30% surge in Vita Coco Coconut Water sales.
Full-year net sales reached $516M (+5% YoY), with coconut water revenue growing 10%.
Gross profit climbed to $199M for the year, reflecting higher branded pricing and strong volume growth.
Net income rose to $56M (+19%), translating to $0.94 per diluted share.
Adjusted EBITDA increased by 23% to $84M, underscoring improved cost efficiencies.
Management Outlook for 2025
Projected net sales between $555M - $570M.
Expected adjusted EBITDA of $86M - $92M, with a gross margin between 35% - 37%.
Branded sales growth in the mid-teens, supported by new product rollouts.
Ocean freight costs remain a headwind, but the company anticipates improved supply chain conditions in H2 2025.
"With more normal inventory levels, a category that is accelerating, and the national launch of Vita Coco Treats, I am very excited for what is to come in 2025." - Martin Roper, CEO
Operational Performance
Industry & Market Trends
The coconut water category grew by 9% in U.S. household adoption and 7% in buy rate, fueled by a shift toward functional beverages and health-conscious consumption.
Strong category momentum continued into 2025, with retail scan data showing 20% YoY growth.
The UK market grew by 21%, while Germany saw over 40% category expansion.
Key Business Milestones
Vita Coco Juice sales skyrocketed by 42%, outpacing the canned beverage category.
Expansion of 1-liter packs into major convenience store chains has been a success.
Launch of Vita Coco Treats, a coconut milk-based beverage, aimed at tapping into indulgence markets.
"Coconut water is becoming a household staple globally, and we’re proud to be the leading brand driving this growth." - Mike Kriban, Executive Chairman
Challenges & Risks
Inventory shortages in mid-2024 impacted summer sales, but inventory levels are now strong.
Ocean freight costs remain volatile, though expected to normalize later in 2025.
Private label losses due to service level issues will weigh on near-term revenue.
Strategic Initiatives
Growth Strategies for 2025
Increased marketing for hydration use cases, positioning coconut water as a sports drink alternative.
Expansion in international markets, particularly in Europe and underpenetrated regions.
Extended Keurig Dr Pepper distribution agreement, enhancing retail presence in the U.S.
Continued innovation in coconut milk beverages and multipack offerings.
"We are excited by our strong momentum and indications from retailers of increased points of distribution in the coming resets." - Martin Roper, CEO
Capital Allocation
No debt as of year-end 2024, with a cash reserve of $165M.
Share buybacks totaled $12.8M, with potential for further repurchases.
No dividend policy updates, as the focus remains on reinvestment for growth.
The Bottom Line
Vita Coco is riding a wave of strong consumer demand, category momentum, and international growth. Despite headwinds from supply chain disruptions and private label declines, the company is well-positioned for double-digit branded sales growth in 2025. With new product launches, expanded retail partnerships, and an increasing focus on hydration marketing, Vita Coco is set for another high-growth year.
--
Comments