Executive Summary

Q1 2025 beat on both revenue and EPS: net sales $130.9M vs S&P Global consensus $125.6M (+4.2%); diluted EPS $0.31 vs $0.19 (+$0.12), while gross margin contracted 550 bps YoY to 36.7% on elevated ocean freight and higher finished goods costs . Consensus values from S&P Global.*
Management reaffirmed FY25 outlook (net sales $555–$570M, GM 35–37%, Adjusted EBITDA $86–$92M) and now explicitly assumes the 10% baseline U.S. import tariff (excludes potential reciprocal tariffs); SG&A growth tightened higher to low-to-mid single digits (from low single digits) .
Category/category-leader momentum continued: Vita Coco Coconut Water net sales +25% YoY; robust U.S./U.K./Germany growth; Treats rolled out nationally late in Q1; Walmart reset headwinds easing with improving in-store execution and plans to re-win distribution .
Key 2H setup: planned price increases (one in Q2, additional in early Q3 tied to tariffs) and expected easing ocean freight support margin stabilization; inventory levels are materially stronger into summer, enabling a normal promo cadence and potential Q3 scan acceleration vs a tough service-lapse comp .

What Went Well and What Went Wrong

What Went Well

Branded momentum and mix: Vita Coco Coconut Water net sales +25% YoY; Americas +24% and International +36% growth, with strong multi-pack and Treats contributions; “other” category +84% on Treats rollout .
Reaffirmed FY25 outlook despite tariffs: Net sales $555–$570M, GM 35–37%, Adjusted EBITDA $86–$92M; now assumes 10% baseline tariff but still held ranges; SG&A up low-to-mid single digits to support growth .
Strengthened balance sheet and capital return: Cash and cash equivalents $153.6M, no debt; buyback authorization raised to $65M with $10.1M repurchased YTD through 4/29/25 .

“Coconut water remains one of the fastest growing categories… which produced 25% Vita Coco Coconut Water net sales growth globally” – Michael Kirban .
“Our exceptionally strong shipment performance… benefited from very strong demand for Vita Coco Coconut Water… [and] the national roll out of Vita Coco Treats” – Martin Roper .

What Went Wrong

Margin pressure: Gross margin fell to 36.7% from 42.2% on higher ocean freight and elevated finished goods costs; mgmt expects full-year GM flat-ish with 2H stronger on pricing and likely lower freight .
Private label softness: Private label net sales declined (Americas -$3.1M YoY in Q1) and is expected to be visibly weaker in Q2 given lost regions and oil exit timing .
Walmart reset drag: Reduced SKUs and shelf changes created a mid-single-digit drag on scans, though velocity improved and mgmt expects to re-win distribution over time .

Financial Results

Metric	Q3 2024	Q4 2024	Q1 2025	Q1 2025 Consensus	Beat/(Miss)
Revenue ($M)	$132.9	$127.3	$130.9	$125.6*	+$5.3M / +4.2%*
Diluted EPS ($)	$0.32	$0.06	$0.31	$0.1925*	+$0.12*
Gross Margin (%)	38.8%	32.4%	36.7%	—	—
Adjusted EBITDA ($M)	$22.9	$7.7	$22.5	—	—
Net Income ($M)	$19.3	$3.4	$18.9	—	—

YoY context (Q1): Revenue $130.9M vs $111.7M (+17%); Diluted EPS $0.31 vs $0.24; Gross margin 36.7% vs 42.2% .

Segment/product net sales (Q1 2025 vs Q1 2024):

Segment/Product	Q1 2024 ($M)	Q1 2025 ($M)
Americas – Vita Coco Coconut Water	$69.5	$86.1
Americas – Private Label	$24.3	$21.2
Americas – Other	$2.3	$5.3
International – Vita Coco Coconut Water	$9.7	$13.2
International – Private Label	$5.2	$4.8
International – Other	$0.8	$0.4
Total Net Sales	$111.7	$130.9

KPIs

Volume (CE) YoY change (Q1 2025 vs Q1 2024)
- Vita Coco Coconut Water: Americas +23.5%, International +34.7%, Total +25.2%
- Private Label: Americas -2.3%, International +13.5%, Total +0.7%
- Other: Americas +187.8%, International -2.7%, Total +172.4%
Segment gross margin (%)
- Americas: 37.6% (Q1’25) vs 42.5% (Q1’24); International: 31.5% vs 40.4%; Consolidated: 36.7% vs 42.2%
Balance sheet snapshot
- Cash & cash equivalents: $153.6M (3/31/25) vs $164.7M (12/31/24)
- Inventory: $88.3M (3/31/25) vs $83.6M (12/31/24)
Share repurchases: $10.1M YTD through 4/29/25; authorization raised to $65M

Note: Consensus values from S&P Global.*

Guidance Changes

Metric	Period	Previous Guidance (Feb 26, 2025)	Current Guidance (Apr 30, 2025)	Change
Net Sales	FY 2025	$555–$570M	$555–$570M	Maintained
Gross Margin	FY 2025	35–37%	35–37%	Maintained
SG&A YoY	FY 2025	Low single digits vs 2024	Low-to-mid single digits vs 2024	Raised
Adjusted EBITDA	FY 2025	$86–$92M	$86–$92M	Maintained
Branded VC Coconut Water Growth	FY 2025	Mid-teens	Mid-to-high teens	Raised
Tariff Assumption	FY 2025	No tariff impact included	Includes baseline 10% U.S. tariff; excludes reciprocal tariffs	Methodology update

Earnings Call Themes & Trends

Topic	Q3 2024 (Q-2)	Q4 2024 (Q-1)	Q1 2025 (Current)	Trend
Supply chain & ocean freight	Container shortages constrained Q3 shipments; freight well above historical; exploring capacity commitments	Elevated freight hitting Q4; availability improving; margins pressured	Freight still elevated YoY but expected to soften 2H; secured capacity for 2025–26	Improving availability; cost easing in 2H
Tariffs & pricing	Watching potential tariffs; would price if needed	FY25 guide excluded tariffs	Assuming 10% baseline tariff; plan incremental pricing in early Q3 on top of Q2 pricing	Active mitigation with pricing
Product performance	Multipacks, Coconut Juice, Treats strong; 1L convenience success	Momentum continued into Q4 set-up	VC Coconut Water +25% YoY; Treats national rollout late Q1; “Other” +84%	Accelerating branded growth
Retail execution (Walmart)	Reset reduced promos/ACV in Q3	Inventory rebuild into year-end	Velocity up on remaining SKUs; expect re-win of lost distribution; mid-single-digit drag currently	Gradual recovery
International	U.K. and Germany leading; build-out in W. Europe	Capacity adds for 2025–26	International VC +36%; stepping up boots-on-ground + marketing	Expanding investment

Management Commentary

“We believe this growth is being fueled by our focused investment as the category leader… together with the benefits of a stronger inventory position to start the year.” – Michael Kirban
“We believe we have secured sufficient capacity to support our growth expectations, which should enable us to operate with some excess capacity during the second half of the year.” – Martin Roper
“We expect gross margins to be relatively flat through the year with the second half being stronger than Q2 due to our planned pricing increases and expected lower ocean freight rates.” – Corey Baker
“We are confident that we will improve our current Walmart trends, and we believe we will see this customer return as a growth engine… once we re-win our lost points of distribution.” – Martin Roper

Q&A Highlights

Tariff mitigation and pricing cadence: Healthy starting inventory delays near-term impact; cost savings and supplier sharing under evaluation; Q2 base price increase followed by additional early Q3 pricing if baseline 10% tariff persists .
Gross margin cadence: Relatively flat intra-year; 2H uplift from pricing and expected lower freight; multiple moving parts (tariffs, freight) .
Walmart update: Trends “improved slightly”; confidence in regaining SKUs and points of distribution; mid-single-digit scan drag currently .
Multipacks and demand: Multipacks remain a growth driver; some value-seeking behavior possible; broader data set effects noted .
International investments: Stepping up marketing and in-market teams (U.K., Germany, broader Europe) to accelerate category penetration .

Estimates Context

Metric	Q1 2025 Consensus	Q1 2025 Actual	Surprise
Revenue ($M)	$125.6*	$130.9	+$5.3M / +4.2%*
Diluted EPS ($)	$0.1925*	$0.31	+$0.12*

Beat drivers: strong branded coconut water growth, Treats contribution, and higher other income (derivative MTM gain) offsetting gross margin compression from elevated ocean freight and finished goods costs .
Note: Consensus values from S&P Global.*

Key Takeaways for Investors

Clean beat and maintained FY25 ranges despite tariff headwinds; updates now explicitly include baseline 10% tariff, de-risking guidance methodology .
Branded engine remains robust (VC Coconut Water +25% YoY), with Treats scaling nationally; segment mix supportive for revenue durability even as private label softens .
Margin path hinges on 2H levers: price increases (Q2 and early Q3) and potential freight normalization; monitor tariff developments and reciprocal-tariff risk .
Retail execution tailwind building: Walmart reset headwinds easing; mgmt expects re-win of distribution, positioning scans to improve into summer/Q3 .
Balance sheet strength and buybacks offer downside protection and capital allocation flexibility (cash $153.6M, no debt; $65M authorization) .
Near-term trading: Positive reaction plausible on beat + guidance hold; watch Q2 private label visibility and Q2 gross margin (flat-ish) ahead of 2H inflection .
Medium-term thesis: Category penetration runway (U.S./U.K./Germany), stepped-up international investment, and capacity adds (2025–26) support sustained mid-teens branded growth algorithm .

Additional context

Marketing/innovation boosts brand heat: Treats national rollout and experiential marketing (NYC ‘Nostalgia Mall’), plus new Coconut Juice Piña Colada flavor ahead of summer .

Footnotes:

Adjusted EBITDA is non-GAAP; see company’s reconciliation and definitions in the release .
Consensus values from S&P Global.*

Vita Coco Company, Inc. (COCO)·Q1 2025 Earnings Summary