The Vita Coco Company, Inc. · NASDAQ:COCO
The Vita Coco — Q4 2023 Earnings Presentation
20 slides from The Vita Coco's earnings presentation, Feb 28, 2024
Slide 1: Building the Better Beverage Platform of the Future
BUILDING THE BETTER BEVERAGE PLATFORM OF THE FUTURE 2023 FOURTH QUARTER AND FULL YEAR 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 Full Year Performance Highlights
2023 FULL YEAR PERFORMANCE HIGHLIGHTS NET SALES % GROWTH VS. PRIOR YEAR (PY) NET SALES: • 2023 Full Year Net Sales growth $494MM / +15% vs. PY of +15% driven by strong Vita Americas International Coco Coconut Water (VCCW) GROSS PROFIT: growth of +14% vs. 2022 $181MM / 37% margin • 2023 Gross Margin
Slide 4: Our Vision
OUR VISION To be the leading platform for brands in the functional beverage category, 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 com
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 ASSET-LITE MARKET RESPONSIBLE BUSINESS, CULTURE & VALUES SUPPLY CHAIN OMNICHANNEL BUSINESS WITH BLUE-CHIP R
Slide 6: Investing to Expand Occasions in >$30B 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 by increasing Sports Drinks consumption occasions of Coconut Water $12B and gaining share from retail executio
Slide 7: Vita Coco and Coconut Water Outpacing Other US Beverage Categories
VITA COCO AND COCONUT WATER OUTPACING OTHER US BEVERAGE CATEGORIES; STRONG VOLUME GROWTH, LESS DEPENDENT ON PRICING VS. OTHER CATEGORIES VOLUME (OZ) SOLD: TOTAL US MULO+C % CHANGE VS. PY DOLLAR $: TOTAL US MULO+C % CHANGE VS. PY L52 Through 12/31/23 L52 Through 12/31/23 Volume Sales % Change vs. YA
Slide 8: Vita Coco Coconut Water in US Growing Faster Than Category
VITA COCO COCONUT WATER IN US GROWING FASTER THAN CATEGORY; FOUR YEAR GROWTH REMAINS VERY STRONG IN Q4 2023, VITA COCO +15% AND GROWING SHARE TO 51% LONG-TERM TRENDS REMAIN STRONG TOTAL US MULO+C $ % CHANGE VS. PY TOTAL US MULO+C $ % CHANGE VS. 4 YR AGO L52W, L26W, AND L13W THROUGH 12/31/2023 L52W,
Slide 9: Key US 2023 Vita Coco Commercial Initiatives Fueling Incremental Growth
KEY US 2023 VITA COCO COMMERCIAL INITIATIVES FUELING INCREMENTAL $ GROWTH WHILE BASE SKUS STRONG; ACV PROGRESSING ON MULTIPACKS AND INNOVATION $11.9 $354.6 $11.7 ACV Performance $33.6 Total US – MULO ACV 1L – $4.3 FY 22 FY 23 500mL – $7.7 $297.4 500mL 1ct Base 84 84 330mL – $21.6 1L Base 77 78 500mL
Slide 10: Fourth Quarter 2023 Financial Highlights
FOURTH QUARTER 2023 FINANCIAL HIGHLIGHTS VOLUME (CE) GROWTH VS. PRIOR YEAR NET SALES GROWTH VS. PRIOR YEAR 17% 16% 12% Q4 2023 21% Versus Q4 2022: 14% 15% 8% 11% 5% Volume (CE) Growth of 6% +16% Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Net Sales Growth of +15%
Slide 11: 2024 Full Year Guidance
2024 FULL YEAR GUIDANCE KEY INITIATIVES 2024 GUIDANCE NET SALES $495-$505MM MULTIPACK JUICE/CANS EXPAND EXPANSION GROWTH OCCASIONS • Strong core Coconut Water growth partially offset by transition of private label coconut oil ADJUSTED $74-$78MM • Stable gross margins despite ocean freight pressure E
Slide 12: Long-Term Growth Algorithm
LONG-TERM GROWTH ALGORITHM LONG-TERM TARGET RANGE1 KEY INVESTMENT THEMES o Established beverage platform with strong balance BRANDED sheet, built for long-term growth MID NET SALES2 TEENS o Branded Net Sales2 growth expected to be primarily driven by Vita Coco Coconut Water GROWTH including contribu
Slide 13: Appendix
APPENDIX oy THe VITA, COMPANY
Slide 14: Q4 2023 P&L Summary
Q4 2023 P&L SUMMARY $ & CE UNITS IN MM Q4 2023 Q4 2022 VS. PY VOLUME (CE) 11.4 9.9 16% 1.5 NET SALES 106.1 92.0 15% 14.1 GROSS PROFIT / % MARGIN 39.8 / 37.5% 22.4 / 24.4% 77% 17.4 SG&A 34.4 27.3 26% 7.1 INCOME FROM OPERATIONS 5.4 (4.8) (213)% 10.2 NET INCOME / % MARGIN 6.8 / 6% (2.8) / (3)% (341)% 9
Slide 15: 2023 P&L Summary
2023 P&L SUMMARY $ & CE UNITS IN MM 2023 2022 VS. PY VOLUME (CE) 53.6 47.2 13% 6.3 NET SALES 493.6 427.8 15% 65.8 GROSS PROFIT / % MARGIN 180.7 / 36.6% 103.4 / 24.2% 75% 77.4 SG&A 124.2 100.3 24% 23.9 INCOME FROM OPERATIONS 56.5 3.1 1723% 53.4 NET INCOME / % MARGIN 46.6 / 9% 7.9 / 2% 497% 38.8 EPS -
Slide 16: Q1 2023 and 2022 Net Income to Adjusted EBITDA Reconciliation
Q1 2023 AND 2022 NET INCOME TO ADJUSTED EBITDA RECONCILIATION Three Months Ended March 31, $MM 2023 2022 NET INCOME $6.7 $2.2 Depreciation & Amortization 0.2 0.5 Interest Income / Expense — — Income Tax Expense 1.8 0.6 EBITDA 8.7 3.3 Stock-Based Compensation 2.2 2.4 Unrealized (Gain) / Loss on Deriv
Slide 17: Q2 2023 and 2022 Net Income to Adjusted EBITDA Reconciliation
Q2 2023 AND 2022 NET INCOME TO ADJUSTED EBITDA RECONCILIATION Three Months Ended June 30, $MM 2023 2022 NET INCOME $18.0 $1.1 Depreciation & Amortization 0.2 0.5 Interest Income (0.3) — Interest Expense — 0.1 Income Tax Expense 4.3 0.6 EBITDA 22.2 2.2 Stock-Based Compensation 2.1 1.8 Unrealized (Gai
Slide 18: Q3 2023 and 2022 Net Income to Adjusted EBITDA Reconciliation
Q3 2023 AND 2022 NET INCOME TO ADJUSTED EBITDA RECONCILIATION Three Months Ended September 30, $MM 2023 2022 NET INCOME $15.2 $7.3 Depreciation & Amortization 0.2 0.5 Interest Income (0.8) — Interest Expense — 0.1 Income Tax Expense 4.0 1.8 EBITDA 18.5 9.7 Stock-Based Compensation 2.9 1.5 Unrealized
Slide 19: Q4 2023 and 2022 Net Income to Adjusted EBITDA Reconciliation
Q4 2023 AND 2022 NET INCOME TO ADJUSTED EBITDA RECONCILIATION Three Months Ended December 31, $MM 2023 2022 NET INCOME $6.8 $(2.8) Depreciation & Amortization 0.2 0.5 Interest Income (1.5) — Interest Expense — — Income Tax Expense 1.2 — EBITDA 6.6 (2.3) Stock-Based Compensation 2.0 1.7 Unrealized (G
Slide 20: 2023 and 2022 Net Income to Adjusted EBITDA Reconciliation
2023 AND 2022 NET INCOME TO ADJUSTED EBITDA RECONCILIATION Year Ended December 31, $MM 2023 2022 NET INCOME $46.6 $7.8 Depreciation & Amortization 0.7 1.9 Interest Income (2.6) (0.1) Interest Expense — 0.3 Income Tax Expense 11.3 3.0 EBITDA 56.0 12.9 Stock-Based Compensation 9.1 7.4 Unrealized (Gain
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