Full Year Net Sales Increased 15% to
Full Year
For Fiscal Year 2024, Expect Net Revenue between
Fourth Quarter 2023 Highlights Compared to Prior Year
- Net sales grew 15% to
$106 million , driven by strong 8% net sales growth and 3% volume growth ofVita Coco Coconut Water. - Gross profit was
$40 million , or 37% of net sales, an increase of$17 million , compared to 24% of net sales, with the improvement driven by lower year-over-year transportation costs, volume growth and higherVita Coco Coconut Water pricing. - Net income was
$7 million , or$0.11 per diluted share, compared to a net loss of$(3) million , or$(0.05) per diluted share. Net income benefited from strong net sales growth and gross margin improvement resulting primarily from decreased transportation costs, partially offset by increased investments in selling, general and administrative ("SG&A") expenses. - Non-GAAP Adjusted EBITDA1 was
$8 million compared to$4 million , up$4 million due to improvements in gross profit partially offset by increased SG&A spending.
Full Year 2023 Highlights Compared to Prior Year
- Net sales grew 15% to
$494 million , driven by strong 14% net sales growth and 11% volume growth ofVita Coco Coconut Water. - Gross profit was $181 million, or 37% of net sales, compared to $103 million, or 24.2% of net sales, with the increase driven primarily by lower year-over-year transportation costs, volume growth and increased
Vita Coco Coconut Water pricing. - Net income was
$47 million , or$0.79 per diluted share, compared to$8 million , or$0.14 per diluted share, with the increase driven by strong net sales growth and gross margin improvement resulting primarily from decreased transportation costs, partially offset by increased investments in SG&A, losses on foreign exchange, and increased tax expense. - Non-GAAP Adjusted EBITDA1 was
$68 million compared to$20 million due to improvements in gross profit partially offset by increased SG&A spending.
Fourth Quarter 2023 Consolidated Results
Net sales increased $14 million, or 15%, to $106 million for the fourth quarter ended
Improved gross margins and gross profit versus prior year resulted primarily from the reduction of transportation costs coupled with increased branded pricing and higher sales volumes. Gross profit was
SG&A expenses in the fourth quarter of 2023 were $34 million, compared to $27 million in the same prior year period. The increase was largely due to investments in marketing expenses and higher personnel related expenses.
Net income was $7 million, or
Non-GAAP Adjusted EBITDA1 for the fourth quarter of 2023 was $8 million, compared to
Full Year 2023 Consolidated Results
Net sales increased
Gross profit increased by
SG&A expenses increased by
Net income was $47 million, or
Adjusted EBITDA1 for the year ended 2023 was
Balance Sheet
As of
On
Fiscal Year 2024 Full Year Outlook
The Company is providing the following guidance:
- Expect 2024 net sales to be between
$495 million and$505 million , with projectedVita Coco Coconut Water and private label coconut water volume growth, being offset by expected decreases in private label coconut oil business and price/mix effects. - Full year gross margin expected to be between 36% and 38%, with some uncertainty related to transportation cost impacts from recent increases in ocean freight routes.
- SG&A expenses expected to be approximately flat to 2023.
- Forecasting Adjusted EBITDA in the range of
$74 million to$78 million 2.
Uncertainty and instability of the current operating environment, global economies, and geopolitical landscape could affect this outlook and our future results.
Footnotes:
(1) Adjusted EBITDA represents earnings before interest, taxes, depreciation, and amortization as adjusted for certain items as set forth in the reconciliation table of U.S. GAAP to non-GAAP information and is a measure calculated and presented on the basis of methodologies other than in accordance with GAAP. Please refer to the Non-GAAP Financial Measures herein for further discussion and reconciliation of this measure to GAAP measures.
(2) GAAP Net Income 2024 outlook is not provided due to the inherent difficulty in quantifying certain amounts due to a variety of factors including the unpredictability in the movement in foreign currency rates, as well as future charges or reversals outside of the normal course of business.
Conference Call and Webcast Details
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About The
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The company is incorporated as a
Contacts
Investor Relations:
investors@thevitacococompany.com
Non-GAAP Financial Measures
In addition to disclosing results determined in accordance with U.S. GAAP, the Company also discloses certain non-GAAP results of operations, including, but not limited to, Adjusted EBITDA, that include certain adjustments or exclude certain charges and gains that are described in the reconciliation table of U.S. GAAP to non-GAAP information provided at the end of this release. These non-GAAP measures are a key metric used by management and our board of directors to assess our financial performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance and because we believe it is useful for investors to see the measures that management uses to evaluate the Company. In addition, we believe the presentation of these measures is useful to investors for period-to-period comparisons of results as the items described below in the reconciliation tables do not reflect ongoing operating performance.
These measures are not in accordance with, or an alternative to, U.S. GAAP, and may be different from non-GAAP measures used by other companies. In addition, other companies, including companies in our industry, may calculate such measures differently, which reduces its usefulness as a comparative measure. Investors should not rely on any single financial measure when evaluating our business. This information should be considered as supplemental in nature and is not meant as a substitute for our operating results in accordance with U.S. GAAP. We recommend investors review the U.S. GAAP financial measures included in this earnings release. When viewed in conjunction with our U.S. GAAP results and the accompanying reconciliations, we believe these non-GAAP measures provide greater transparency and a more complete understanding of factors affecting our business than U.S. GAAP measures alone.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including but not limited to, statements regarding our future financial and operating performance, including our GAAP and non-GAAP guidance, our strategy, projected costs, prospects, expectations, plans, objectives of management, supply chain predictions, customer and supplier relationships, and expected net sales and category share growth.
The forward-looking statements in this release are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements involve a number of risks, uncertainties or other factors beyond the Company’s control. These factors include, but are not limited to, those discussed under the caption “Risk Factors” in our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and our other filings with the
Website Disclosure
We intend to use our websites, vitacoco.com and investors.thevitacococompany.com, as a means for disclosing material non-public information and for complying with the
THE CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share data) | |||||||
2023 | 2022 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 132,537 | $ | 19,629 | |||
Accounts receivable, net of allowance of | 50,086 | 43,350 | |||||
Inventory | 50,757 | 84,115 | |||||
Supplier advances, Current | 1,521 | 1,534 | |||||
Derivative assets | 3,876 | 3,606 | |||||
Asset held for sale | — | 503 | |||||
Prepaid expenses and other current assets | 24,160 | 22,181 | |||||
Total current assets | 262,937 | 174,918 | |||||
Property and equipment, net | 2,136 | 2,076 | |||||
7,791 | 7,791 | ||||||
Supplier advances, long-term | 2,820 | 4,360 | |||||
Deferred tax assets, net | 6,749 | 4,256 | |||||
Right-of-use assets, net | 1,406 | 2,679 | |||||
Other assets | 1,843 | 1,677 | |||||
Total assets | $ | 285,682 | $ | 197,757 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 21,826 | $ | 15,910 | |||
Accrued expenses | 59,533 | 38,342 | |||||
Notes payable, current | 13 | 23 | |||||
Derivative liabilities | 1,213 | 71 | |||||
Total current liabilities | 82,585 | 54,346 | |||||
Notes payable, long-term | 13 | 25 | |||||
Other long-term liabilities | 647 | 2,293 | |||||
Total liabilities | $ | 83,245 | $ | 56,664 | |||
Stockholders’ equity: | |||||||
Common stock, | 631 | 622 | |||||
Additional paid-in capital | 161,414 | 145,210 | |||||
Retained earnings | 100,742 | 55,183 | |||||
Accumulated other comprehensive loss | (649 | ) | (994 | ) | |||
(59,701 | ) | (58,928 | ) | ||||
Total stockholders’ equity attributable to The | 202,437 | 141,093 | |||||
Total liabilities and stockholders’ equity | $ | 285,682 | $ | 197,757 |
THE CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except for share and per share data) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Net sales | $ | 106,144 | $ | 91,991 | $ | 493,612 | $ | 427,787 | |||||||
Cost of goods sold | 66,341 | 69,558 | 312,883 | 324,426 | |||||||||||
Gross profit | 39,803 | 22,433 | 180,729 | 103,361 | |||||||||||
Operating expenses | |||||||||||||||
Selling, general and administrative | 34,381 | 27,288 | 124,236 | 100,306 | |||||||||||
Total operating expenses | 34,381 | 27,288 | 124,236 | 100,306 | |||||||||||
Income from operations | 5,422 | (4,855 | ) | 56,493 | 3,055 | ||||||||||
Other income (expense) | |||||||||||||||
Unrealized gain/(loss) on derivative instruments | 886 | 190 | (872 | ) | 6,606 | ||||||||||
Foreign currency gain/(loss) | 179 | 1,895 | (251 | ) | 1,387 | ||||||||||
Interest income | 1,476 | 21 | 2,581 | 51 | |||||||||||
Interest expense | — | (45 | ) | (31 | ) | (258 | ) | ||||||||
Total other income (expense) | 2,541 | 2,061 | 1,427 | 7,786 | |||||||||||
Income before income taxes | 7,963 | (2,794 | ) | 57,920 | 10,841 | ||||||||||
Income tax expense | (1,190 | ) | (16 | ) | (11,291 | ) | (3,027 | ) | |||||||
Net income | $ | 6,773 | $ | (2,810 | ) | $ | 46,629 | $ | 7,814 | ||||||
Net income per common share | |||||||||||||||
Basic | $ | 0.12 | $ | (0.05 | ) | $ | 0.83 | $ | 0.14 | ||||||
Diluted | $ | 0.11 | $ | (0.05 | ) | $ | 0.79 | $ | 0.14 | ||||||
Weighted-average number of common shares outstanding | |||||||||||||||
Basic | 56,836,488 | 55,951,237 | 56,427,890 | 55,732,619 | |||||||||||
Diluted | 59,502,729 | 56,405,035 | 58,747,338 | 56,123,661 |
THE CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands) | |||||||
Twelve Months Ended | |||||||
2023 | 2022 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 46,629 | $ | 7,814 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 660 | 1,901 | |||||
(Gain)/loss on disposal of equipment | 19 | 1 | |||||
Bad debt expense | 260 | 2,641 | |||||
Unrealized (gain)/loss on derivative instruments | 872 | (6,606 | ) | ||||
Stock-based compensation | 9,128 | 7,384 | |||||
Impairment loss on assets held for sale | 363 | 619 | |||||
Impairment of intangible assets | — | 6,714 | |||||
Deferred tax expense | (2,382 | ) | (3,081 | ) | |||
Noncash lease expense | 1,288 | 1,058 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (7,088 | ) | 321 | ||||
Inventory | 33,688 | (9,333 | ) | ||||
Prepaid expenses, net supplier advances, and other assets | (622 | ) | (3,592 | ) | |||
Accounts payable, accrued expenses, and other liabilities | 24,340 | (16,776 | ) | ||||
Net cash provided by (used in) operating activities | 107,155 | (10,935 | ) | ||||
Cash flows from investing activities: | |||||||
Cash paid for property and equipment | (599 | ) | (982 | ) | |||
Proceeds from sale of property and equipment | 5 | — | |||||
Net cash used in investing activities | (594 | ) | (982 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from exercise of stock awards | 7,086 | 3,062 | |||||
Borrowings on credit facility | — | 22,000 | |||||
Repayments of borrowings on credit facility | — | (22,000 | ) | ||||
Cash received (paid) on notes payable | (23 | ) | (28 | ) | |||
Cash paid to acquire treasury stock | (773 | ) | — | ||||
Net cash used in financing activities | 6,290 | 3,034 | |||||
Effects of exchange rate changes on cash and cash equivalents | 387 | (178 | ) | ||||
Net (decrease) increase in cash and cash equivalents | 113,238 | (9,061 | ) | ||||
Cash and cash equivalents at beginning of the period | 19,629 | 28,690 | |||||
Cash, cash equivalents, and restricted cash at end of the period 1 | $ | 132,867 | $ | 19,629 |
1 Includes
RECONCILIATION FROM GAAP NET INCOME TO NON-GAAP ADJUSTED EBITDA | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
(in thousands) | (in thousands) | ||||||||||||||
Net income | $ | 6,773 | $ | (2,810 | ) | $ | 46,629 | $ | 7,814 | ||||||
Depreciation and amortization | 157 | 460 | 660 | 1,901 | |||||||||||
Interest income | (1,476 | ) | (21 | ) | (2,581 | ) | (51 | ) | |||||||
Interest expense | — | 45 | 31 | 258 | |||||||||||
Income tax expense | 1,190 | 16 | 11,291 | 3,027 | |||||||||||
EBITDA | 6,644 | (2,310 | ) | 56,030 | 12,949 | ||||||||||
Stock-based compensation (a) | 2,002 | 1,727 | 9,128 | 7,384 | |||||||||||
Unrealized (gain)/loss on derivative instruments (b) | (886 | ) | (190 | ) | 872 | (6,606 | ) | ||||||||
Foreign currency (gain)/loss (b) | (179 | ) | (1,895 | ) | 251 | (1,387 | ) | ||||||||
Secondary Offering Costs (c) | 669 | — | 1,525 | — | |||||||||||
Impairment of intangible assets (d) | — | 6,714 | — | 6,714 | |||||||||||
Other adjustments (e) | 34 | — | 363 | 1,240 | |||||||||||
Adjusted EBITDA | $ | 8,284 | $ | 4,046 | $ | 68,169 | $ | 20,294 |
(a) | Non-cash charges related to stock-based compensation, which vary from period to period depending on volume and vesting timing of awards and forfeitures. We adjusted for these charges to facilitate comparison from period to period. |
(b) | Unrealized gains or losses on derivative instruments and foreign currency gains or losses are not considered in our evaluation of our ongoing performance. |
(c) | Reflects other non-recurring expenses related to costs associated with two secondary offerings in which |
(d) | Non-cash intangible asset impairment charge related to the Runa trademarks and distributor relationships. |
(e) | Reflects other charges primarily related to the impairment loss related to assets held for sale in both periods and other non-recurring expenses. |
SUPPLEMENTAL INFORMATION | |||||||||||
Three Months Ended | Year Ended | ||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||
Vita Coco Coconut Water | $ | 63,396 | $ | 58,030 | $ | 317,221 | $ | 275,964 | |||
Private Label | 25,800 | 19,760 | 103,166 | 88,173 | |||||||
Other | 2,368 | 1,932 | 9,858 | 9,485 | |||||||
Subtotal | $ | 91,564 | $ | 79,722 | $ | 430,245 | $ | 373,622 | |||
International segment | |||||||||||
Vita Coco Coconut Water | $ | 8,201 | $ | 8,460 | $ | 41,829 | $ | 38,570 | |||
Private Label | 5,573 | 3,334 | 18,713 | 12,855 | |||||||
Other | 806 | 475 | 2,825 | 2,740 | |||||||
Subtotal | $ | 14,580 | $ | 12,268 | $ | 63,367 | $ | 54,165 | |||
Total net sales | $ | 106,144 | $ | 91,990 | $ | 493,612 | $ | 427,787 |
COST OF GOODS SOLD & GROSS PROFIT | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||
Cost of goods sold | |||||||||||||||
$ | 53,769 | $ | 57,515 | $ | 267,983 | $ | 278,130 | ||||||||
International segment | 12,572 | 12,042 | 44,900 | 46,296 | |||||||||||
Total cost of goods sold | $ | 66,341 | $ | 69,557 | $ | 312,883 | $ | 324,426 | |||||||
Gross profit | |||||||||||||||
$ | 37,796 | $ | 22,207 | $ | 162,262 | $ | 95,492 | ||||||||
International segment | 2,007 | 226 | 18,467 | 7,869 | |||||||||||
Total gross profit | $ | 39,803 | $ | 22,433 | $ | 180,729 | $ | 103,361 | |||||||
Gross margin | |||||||||||||||
41.3 | % | 27.9 | % | 37.7 | % | 25.6 | % | ||||||||
International segment | 13.8 | % | 1.8 | % | 29.1 | % | 14.5 | % | |||||||
Consolidated | 37.5 | % | 24.4 | % | 36.6 | % | 24.2 | % |
VOLUME (CE) | |||||||
Three Months Ended | Year Ended | ||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||
Vita Coco Coconut Water | 6,510 | 6,189 | 33,021 | 29,458 | |||
Private Label | 2,844 | 1,850 | 11,298 | 9,063 | |||
Other | 209 | 156 | 923 | 1,248 | |||
Subtotal | 9,563 | 8,195 | 45,242 | 39,769 | |||
International segment* | |||||||
Vita Coco Coconut Water | 1,118 | 1,216 | 5,783 | 5,628 | |||
Private Label | 715 | 457 | 2,481 | 1,783 | |||
Other | 16 | 7 | 62 | 46 | |||
Subtotal | 1,849 | 1,680 | 8,326 | 7,457 | |||
Total volume (CE) | 11,412 | 9,875 | 53,568 | 47,226 |
Note: A CE is a standard volume measure used by management which is defined as a case of 12 bottles of 330ml liquid beverages or the same liter volume of oil.
*International Other excludes minor volume that is treated as zero CE
Source: The
2024 GlobeNewswire, Inc., source