Vita Coco Company, Inc. Q1 FY2026 earnings call

• Mike Kerman thanked colleagues for strong start to the year and discussed momentum, international business growth, and focus on active hydration. • Martin Roper reported robust first quarter performance, strong retail scan results, discussed cost factors like tariffs and freight, and mentioned raising four-year net sales outlook. • Corey Baker provided details on first quarter financial results, including net sales growth, gross profit, operating expenses, and balance sheet, and raised full-year expectations for net sales and adjusted EBITDA.

In the Americas segment, net sales grew 32% to $148 million. Vitacoco Coconut Water led this with net sales growth of 37% to $118 million, driven by a 29% volume increase and a 6% net price mix benefit. Private label in the Americas increased net sales 15% to $24 million, with an 18% volume increase and a 2% price mix decrease. The international segment had net sales up 72%, with Vitacoco coconut water net sales growing 71% and private label increasing 86%.

• Raised full-year net sales outlook to between $720 and $735 million and adjusted EBITDA to $132 to $138 million. • Expects U.S. category growth around 20% and international business led by U.K. and Germany to have healthy growth. • Anticipates consolidated growth of Vitacoco coconut water net sales in mid to high teens, and increased private label net sales growth in the U.S. • Sees gross margins for full year around 38% and SG&A to increase high single digits as a percentage of net sales.

• Impact from Middle East events seen in inflationary factors at manufacturing partners, including packaging costs, energy, and ocean freight fuel surcharges, as well as increased domestic transportation costs due to fuel price increases.

Q: Bonnie Herzog from Goldman Sachs asked about drivers of strong sales and reconciliation of Q1 growth with year-end guidance.

A: Mentioned pull forward of a major club promotion, distribution gains at Walmart, and international business growth.

Q: Peter Galbo from Bank of America asked about 2Q top line and gross margin.

A: Discussed retail scan tracking, peak season considerations, and impact of inflationary factors on gross margin.

Q: Chris Carey from Wells Fargo Securities asked about revenue phasing and international growth runway.

A: Explained revenue phasing due to shipment timing and discussed international market size and growth potential.

Q: Eric Serrata from Morgan Stanley asked about pricing and freight rates.

A: Talked about current pricing environment and freight rate factors including fuel surcharges.

Q: Eric DeLaurier from Craig Hallam Capital Market Group asked about supply matching demand and private label landscape.

A: Addressed supply capacity utilization and private label opportunities and competitive environment.

Q: Camille Gajrawala from Jefferies asked about growth drivers and supply planning for 27 - 28.

A: Discussed hydration as a driver and supply chain planning for future years.

Q: Mike Lavery from Piper Sandler asked about distributor incentives and balance sheet priorities.

A: Elaborated on distributor incentives and balance sheet priorities including growth support, innovation, M&A, and share buybacks.

Q: Robert Ottenstein from Evercore ISR asked about shelf space, C - Store performance, and supply service levels.

A: Talked about shelf space positioning, C - Store growth, and supply chain service level considerations.

Q: John Anderson from William Blair asked about CBP tariff refund timeline.

A: Stated refund claim timeline is around 60 - 120 days.

Q: Gerald Pasquarelli from Needham & Company asked about capacity utilization balancing branded and private label.

A: Addressed balancing service between branded products and private label based on commitments and supply chain.