The Vita Coco Company, Inc. Q4 FY2025 earnings call

• Michael Kirban thanked colleagues for strong performance in 2025, highlighted coconut water category growth, international business acceleration with Europe as a developing market, and appointed Charles Van Asch as Chief Commercial Officer. - Martin F. Roper reported record performance in 2025, spoke about U.S. branded scan results, tariff impact, supply chain, and plans for 2026 including focusing on active hydration, expanding into sport and recovery, and leveraging promotional activity. - Corey Baker provided details on 2025 financial results, including net sales, gross profit, operating expenses, balance sheet, and cash flow, and outlook for 2026 with expected net sales range, gross margin expectations, and private label and Vita Coco Coconut Water growth plans.

For 2025, net sales increased to $610,000,000, up 18% year over year. Within the Americas, net sales grew 15% to $509,000,000, led by Vita Coco Coconut Water growing 24% to $424,000,000, with private label decreasing 30% to $63,000,000. International net sales were up 37%, with Vita Coco Coconut Water net sales growing 43% and private label increasing 34%. Consolidated gross profit was $223,000,000, an increase of $24,000,000 versus prior year, with gross margins at 37% for the year. SG&A costs increased to $140,000,000. Net income attributable to shareholders was $71,000,000, or $1.19 per diluted share. Adjusted EBITDA was $98,000,000 or 16% of net sales.

• Expect net sales between $680,000,000 and $700,000,000 in 2026 with expected gross margins of approximately 38% and adjusted EBITDA of $122,000,000 to $128,000,000. - Plan strong net sales growth with U.S. category growing mid-teens and international business, led by U.K. and Germany, maintaining healthy growth rates. - Expect consolidated growth of Vita Coco Coconut Water of low to mid-teens, strong private label net sales growth of 20% to 25% in U.S., and phasing of Vita Coco promotion at major U.S. retailer. - Anticipate 2026 gross margins to improve from 2025 levels, with SG&A increasing mid- to high-single digits as a percentage of net sales but expecting SG&A leverage of about one point over 2025.

Q: Eric Des Lauriers asked about private label growth cadence and white space opportunity in Americas, and international growth color.

A: Corey Baker said private label growth will improve after Q1 with full year growth 20 - 25% in Americas starting in Q2 with a ramp towards back half; Michael Kirban said private label business is more diversified; Martin F. Roper and Michael Kirban discussed international sales growing 37%, Europe as developing market, and international expected to continue providing significant growth.

Q: James Ronald Salera asked about Walmart placement characteristics and consumer data, and hydration use occasion marketing plans.

A: Martin F. Roper said it's too early for consumer data on Walmart placement impact; Martin F. Roper and Michael Kirban discussed hydration use occasion being a big focus with communication around electrolytes, youth sports partnerships, and media testing.

Q: Michael Scott Lavery asked about cash expectations, innovation, and marketing spend.

A: Corey Baker said priority is growing core brand and category, M&A on hold but active, and returning cash to shareholders; Martin F. Roper talked about innovation like adding Treats flavor and pack formats, and marketing spend increase to push hydration method and protect brand versus private label