Overview

• U.S. coconut water maker's Q2 sales rose 28%, beating analyst expectations

• Adjusted adjusted EBITDA for Q2 beat analyst expectations

• Company raised full-year 2026 sales and adjusted EBITDA guidance, citing strong brand and private label trends

Outlook

• Vita Coco raises 2026 net sales guidance to $790 mln-$805 mln

• Company expects 2026 adjusted EBITDA of $154 mln-$161 mln

• Vita Coco sees 2026 gross margin at about 40%

Result Drivers

• COCONUT WATER GROWTH - Net sales growth was driven by a 21% increase in Vita Coco Coconut Water sales, supported by higher household penetration and average consumption, per co-founder Michael Kirban

• PRIVATE LABEL SHIPMENTS - Robust private label shipment growth, mainly from distribution gains, contributed to sales performance

• GROSS MARGIN IMPROVEMENT - Gross margin rose to 49% from 36%, primarily due to tariff refunds, higher net pricing, and lower ocean freight and finished goods costs, partially offset by higher domestic logistics costs

Company press release: ID:nGNX6p5QBf

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Sales	Beat	$216 mln	$210.64 mln (9 Analysts)
Q2 Net Income		$49 mln
Q2 Adjusted EBITDA	Beat	$67.23 mln	$45.11 mln (9 Analysts)
Q2 Gross Margin		49.00%

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the non-alcoholic beverages peer group is "buy"

• Wall Street's median 12-month price target for Vita Coco Company Inc is $78.00, about 4.8% above its July 22 closing price of $74.45

• The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 30 three months ago

Reuters Recommended Reads

• July 23 - How the hunt for value sparked a U.S. private-label revolution

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• July 20 - Crown Holdings beats Q2 revenue on beverage can growth, raises FY adjusted diluted EPS guidance

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