The Vita Coco Company, Inc. · NASDAQ:COCO
The Vita Coco — Q1 2023 Earnings Presentation
18 slides from The Vita Coco's earnings presentation, May 3, 2023
Slide 1: Building the Better Beverage Platform of the Future: 2023 First Quarter Results
BUILDING THE BETTER BEVERAGE PLATFORM OF THE FUTURE 2023 FIRST QUARTER RESULTS
Slide 2: Disclaimer
DISCLAIMER Non-GAAP Financial Measures In addition to disclosing results determined in accordance with U.S. GAAP, The Vita Coco Company, Inc. (the “Company”) also discloses certain non-GAAP results of operations, including, but not limited to, Adjusted EBITDA, that include certain adjustments or exc
Slide 3: 2023 First Quarter Performance Highlights
2023 FIRST QUARTER PERFORMANCE HIGHLIGHTS NET SALES % GROWTH VS. PRIOR YEAR (PY) NET SALES: $110MM / +14% vs. PY • Q1 2023 Net Sales growth of +14% Americas International driven by strong Vita Coco Coconut Water (VCCW) growth of +17% vs. GROSS PROFIT: Q1 2022, with +15% VCCW Volume $34MM / 31% margi
Slide 4: Our Vision
OUR VISION To be the leading independent, pure play natural beverage portfolio company, and help our consumers… EAT A LITTLE BETTER, DRINK A LITTLE BETTER, LIVE A LITTLE BETTER We believe in democratizing health and wellness, while using business as a force for good to drive positive impact in our c
Slide 5: Building the Better Beverage Platform of the Future
BUILDING THE BETTER BEVERAGE PLATFORM OF THE FUTURE A PUBLIC BENEFIT CORPORATION GLOBAL SUPPLY CHAIN – COCONUT WATER COMMITTED TO GIVING BACK AT SOURCE – SUPPORTED BY CO-PACK IN DIFFERENTIATED MARKET RESPONSIBLE BUSINESS, ASSET-LITE CULTURE & VALUES SUPPLY CHAIN OMNICHANNEL BUSINESS WITH BLUE-CHIP P
Slide 6: Investing to Expand Occasions in >$30B Better-For-You Functional Hydration Category
INVESTING TO EXPAND OCCASIONS FOR OUR BRANDS IN >$30B BETTER-FOR-YOU FUNCTIONAL HYDRATION CATEGORY Large Better-For-You Functional Capturing Opportunities Hydration Category Expand the core through share gains Sport Drinks from retail execution and expanded $11B package offerings Extend the brand to
Slide 7: Vita Coco and Coconut Water Outpacing Other Beverage Categories
VITA COCO AND COCONUT WATER OUTPACING OTHER BEVERAGE CATEGORIES IN YTD DOLLAR AND VOLUME GROWTH TOTAL US MULO+C $ % CHANGE VS PY TOTAL US MULO+C VOLUME (OZ) SOLD % CHANGE VS PY L13W THROUGH 04/02/2023 L13W THROUGH 04/02/2023 21.8% 16.5% 15.1% 14.2% 13.1% 14.9% 9.7% 8.7% 9.4% 7.4% 5.4% -3.8% -4.4% -4
Slide 8: Vita Coco Coconut Water Accelerating in Q1 2023
VITA COCO COCONUT WATER ACCELERATING IN Q1 2023 GROWING FASTER THAN CATEGORY; FOUR YEAR GROWTH RATE VERY STRONG AND ACCELERATING IN Q1 2023, VITA COCO +22% AND GROWING SHARE TO 52% LONG-TERM TRENDS CONTINUE TO ACCELERATE TOTAL US MULO+C $ % CHANGE VS PY TOTAL US MULO+C $ % CHANGE VS 4 YR AGO L52W, L
Slide 9: Q1 2023 Growth Across All Circana Reported Channels
Q1 2023 GROWTH ACROSS ALL CIRCANA* REPORTED CHANNELS DRIVEN PRIMARILY BY VELOCITY GAINS AND, TO A LESSER EXTENT, BY DISTRIBUTION GROWTH VITA COCO COCONUT WATER $ % CHANGE VS PY THROUGH 04/02/2023 L52W L26W L13W 21.8% 22.3% 19.3% 18.9% 15.5% 15.8% 15.0% 14.0% 13.7% 12.6% 11.2% 5.2% Total US MULO + C
Slide 10: Key 2023 Vita Coco Commercial Drivers Fueling Incremental Growth
KEY 2023 VITA COCO COMMERCIAL DRIVERS ARE FUELING INCREMENTAL $ GROWTH WHILE BASE SKUS REMAIN STRONG; ACV OPPORTUNITIES REMAIN ACV Performance Total US – MULO ACV Q1 ’22 Q1 ‘23 500mL 1ct Base 82 83 1L – $1.6 500mL MPs 61 67 330mL – $3.7 330mL MPs 9 45 500mL – $3.8 1L MPs 5 40 Farmers 1L 3 45 Total U
Slide 11: Household Penetration and Spend Per Trip Has Grown
VITA COCO HOUSEHOLD PENETRATION AND SPEND PER TRIP HAS GROWN; VITA COCO OVERINDEXING TO YOUNGER HOUSEHOLDS AND KEY ETHNIC GROUPS OUR CONSUMER BASE HAS CONSUMERS ARE SPENDING PURCHASE FREQUENCY IS OUR SHOPPER IS YOUNG GROWN MORE STABLE AND MULTI-CULTURAL …+5% MORE HOUSEHOLDS …+12% MORE PER TRIP VITA
Slide 12: First Quarter 2023 Financial Highlights
FIRST QUARTER 2023 FINANCIAL HIGHLIGHTS VOLUME (CE) AND GROWTH % NET SALES AND NET SALES GROWTH Growth % Growth % vs. Prior 27% 10% 3% 5% 8% $14 0MM 28% 13% 7% 6% 14% vs. Prior 45% Year Period Year Period Q1 2023 40% 14M M 40% $12 0MM $124MM 35% 13MM 35% $115MM 12M M 13MM Versus Q1 2022: $10 0MM $11
Slide 13: Gross Margin Recovering - On Pathway to Historical Levels
GROSS MARGIN RECOVERING - ON PATHWAY TO HISTORICAL LEVELS Q1 2023 Versus Q1 2022: 2020 2021 2022 Q1 2022 Q1 2023 Gross Margin % increase driven largely by improvements in Ocean Volume (CE) 40.0% 36MM 43MM 47MM 11MM 12MM 50M M Freight rates which have eased 45M M from the significant inflationary 35.
Slide 14: Updated 2023 Full Year Guidance
UPDATED 2023 FULL YEAR GUIDANCE KEY HIGHLIGHTS • Net Sales guidance reflects mid teens growth for NET SALES VCCW and Private Label Net Sales slightly positive +9-12% GROWTH1 • Gross Margin anticipated to increase through balance of year, benefiting from the easing of transportation costs and improve
Slide 15: Long-Term Growth Algorithm
LONG-TERM GROWTH ALGORITHM LONG-TERM TARGET RANGE1 KEY INVESTMENT THEMES o Established beverage platform with strong balance sheet, built for long term growth NET SALES MID o Estimated Net Sales growth primarily driven by Vita Coco Coconut Water with potential GROWTH TEENS additional upsides from in
Slide 16: Appendix
APPENDIX 16
Slide 17: Q1 2023 P&L Summary
Q1 2023 P&L SUMMARY $ & CE UNITS IN MM Q1 2023 Q1 2022 VS. PY VOLUME (CE) / % gr. 11.9 11.0 8% 0.9 NET SALES / % gr. 109.8 96.4 14% 13.3 GROSS PROFIT / % marg. 33.7 / 30.7% 19.1 / 19.8% 77% 14.6 SG&A 27.0 24.8 9% 2.2 INCOME FROM OPERATIONS 6.7 (5.7) 218% 12.4 NET INCOME / % marg. 6.7 / 6.1% 2.2 / 2.
Slide 18: Q1 2023 Net Income to Adjusted EBITDA Reconciliation
Q1 2023 NET INCOME TO ADJUSTED EBITDA RECONCILIATION THREE MONTHS ENDED MAR 31 $MM Q1 2023 Q1 2022 Net Income $6.7 $2.2 Depreciation & Amortization 0.2 0.5 Interest Income / Expense 0.0 0.0 Income Tax Expense 1.8 0.6 EBITDA $8.7 $3.3 Stock-Based Compensation 2.2 2.4 Unrealized (Gain) / Loss on Deriv
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