The Vita Coco Company, Inc. · NASDAQ:COCO
The Vita Coco — Q3 2024 Earnings Presentation
18 slides from The Vita Coco's earnings presentation, Oct 30, 2024
Slide 1: Building the Better Beverage Platform of the Future
BUILDING THE BETTER BEVERAGE PLATFORM OF THE FUTURE 2024 THIRD QUARTER RESULTS ©2 0 2 4 V IT A C O C O . P R O P RIETAR Y A N D C O N F IDE NTIAL
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: 2024 Third Quarter Performance Highlights vs. Q3 2023
2024 THIRD QUARTER PERFORMANCE HIGHLIGHTS VS. Q3 2023 (3.7)% NET SALES $133MM GROSS MARGIN 38.8% (190) BPS ADJUSTED $23MM EBITDA1 17.3% MARGIN (221) BPS $19MM NET INCOME $0.32 PER SHARE $157MM CASH-ON-HAND $0MM DEBT 3 1 For all non-GAAP information throughout this presentation, the U.S. GAAP to non-
Slide 4: 2024 Third Quarter YTD Performance Highlights
2024 THIRD QUARTER YTD PERFORMANCE HIGHLIGHTS VS. Q3 2023 YTD +0.3% NET SALES $389MM 40.5% GROSS MARGIN +410 BPS ADJUSTED $76MM EBITDA1 19.7% MARGIN +420 BPS $53MM NET INCOME $0.89 PER SHARE $157MM CASH-ON-HAND $0MM DEBT 4 1 For all non-GAAP information throughout this presentation, the U.S. GAAP to
Slide 5: Q3 2024 Vita Coco US Scan Growth and TDPs Impacted by Low In-Market Inventory
Q3 2024 VITA COCO US SCAN GROWTH AND TDPS IMPACTED BY LOW IN-MARKET INVENTORY TDPS INDEX (TOTAL DISTRIBUTION POINTS RELATIVE TO FIRST FOUR $ GROWTH VITA COCO AND COCONUT WATER CATEGORY WEEKS 2023=100) Estimated Estimated Inventory Inventory Impacted Period Impacted Period JAN 2024 - JUL 2024 AUG 202
Slide 6: 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 7: Strategic Growth Pillars
STRATEGIC GROWTH PILLARS EXPAND INNOVATE GROW FUTURE HOUSEHOLDS OUTSIDE THE INTERNATIONAL M&A AND OCCASIONS CORE Expand consumption Extend the brand to new International expansion M&A in markets and occasions and gain share occasions with new with focus on growing categories complementary from retai
Slide 8: Circana Data Now Reflects the Update to Using US MULO+
CIRCANA DATA (UNLESS NOTED) NOW REFLECTS THE UPDATE TO USING US MULO+ US MULO+ expanded coverage includes: Costco, Amazon 1P, Other Minor Retailers OLD: MULO-C MEASURES NEW: MULO+ w/Conv ~60%1 % of Our Tracked USA Branded Volume (CE) ~80%1 $0.8B Category Size ($B) $1.1B 48.7% Vita Coco Share of Cate
Slide 9: 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 SOLD: TOTAL US MULO+ w/C % CHANGE VS. PY DOLLAR $: TOTAL US MULO+ w/C % CHANGE VS. PY Last 52 weeks - 9/29/2024 Last 52 weeks - 9/29/2024 1.6% (0.5)% 0.9% 1
Slide 10: Coconut Water Category Growth Slowed Reflecting Vita Coco Inventory Constraints
VITA COCO COCONUT WATER AND COCONUT WATER CATEGORY GROWTH SLOWED REFLECTING VITA COCO INVENTORY CONSTRAINTS IN Q3 2024, VITA COCO +3% AND SHARE OF 42% TOTAL US MULO+ w/C $ % CHANGE VS. PY VITA COCO US SHARE OF COCONUT WATER L52W, YTD, L26W, AND L13W THROUGH 9/29/2024 10 Source: Custom Research by Th
Slide 11: Key US 2024 Commercial Initiatives Produce ACV Growth
KEY US 2024 VITA COCO COCONUT WATER COMMERCIAL INITIATIVES PRODUCE ACV GROWTH, EVEN WITH INVENTORY CONSTRAINTS DAMPENING SCAN GROWTH ACV Performance Total US – MULO+ ACV Q3'23 Q3'24 500mL 1ct Base 73 72 1L Base 69 69 500mL MPs (4pk) 60 62 330mL MPs 56 60 1L MPs 41 40 Farmers 1L 40 44 Total US – Conv
Slide 12: 2024 Third Quarter Financial Highlights
2024 THIRD QUARTER FINANCIAL HIGHLIGHTS Q3 2024 Versus Q3 2023: Volume (CE) decline of (3)% Net Sales decrease of (4)% Gross Margin Gross Margin decrease of (190)bps Adj. EBITDA* decrease of $(4)MM 12 *For all non-GAAP information throughout this presentation, the U.S. GAAP to non-GAAP reconciliatio
Slide 13: Raising 2024 Full Year Guidance
RAISING 2024 FULL YEAR GUIDANCE LONG-TERM GROWTH ALGORITHM2 NET SALES $505-$515MM BRANDED MID NET SALES3 TEENS GROWTH ADJUSTED $80-$84MM ADJ. EBITDA EBITDA1 HIGH TEENS MARGIN Source: The Vita Coco Company. 1GAAP Net Income 2024 outlook is not provided due to the inherent difficulty in quantifying ce
Slide 14: Appendix
APPENDIX
Slide 15: Q3 2024 P&L Summary
Q3 2024 P&L SUMMARY $ & CE UNITS IN MM Q3 2024 Q3 2023 VS. PY NET SALES 132.9 138.1 (4)% -5.2 GROSS PROFIT / % MARGIN 51.6 / 39% 56.2 / 41% (8)% -4.6 SG&A 31.0 32.6 (5)% (1.7) INCOME FROM OPERATIONS 20.6 23.5 (12)% -2.9 NET INCOME / % MARGIN 19.3 / 14% 15.2 / 11% 27% 4.1 EPS - DILUTED $0.32 $0.26 NO
Slide 16: 2024 YTD P&L Summary
2024 YTD P&L SUMMARY $ & CE UNITS IN MM 2024 YTD 2023 YTD VS. PY NET SALES 388.7 387.5 —% 1.3 GROSS PROFIT / % MARGIN 157.5 / 41% 140.9 / 36% 12% 16.6 SG&A 87.9 89.9 (2)% (1.9) INCOME FROM OPERATIONS 69.5 51.1 36% 18.5 NET INCOME / % MARGIN 52.6 / 14% 39.9 / 10% 32% 12.7 EPS - DILUTED $0.89 $0.68 NO
Slide 17: Q1-Q3 2024 and Q1-Q4 2023 Net Income to Adjusted EBITDA Reconciliation
Q1-Q3 2024 AND Q1-Q4 2023 NET INCOME TO ADJUSTED EBITDA RECONCILIATION Three Months Ended $MM September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 NET INCOME $19.3 $19.1 $14.2 $6.8 $15.2 $18.0 $6.7 Depreciation & Amortization 0.2 0.2 0.2 0
Slide 18: September YTD 2024 and 2023 Net Income to Adjusted EBITDA Reconciliation
SEPTEMBER YTD 2024 AND 2023 NET INCOME TO ADJUSTED EBITDA RECONCILIATION Nine Months Ended $MM September 30, 2024 September 30, 2023 NET INCOME $52.6 $39.9 Depreciation & Amortization 0.5 0.5 Interest Income / Expense (5.0) (1.1) Income Tax Expense 16.6 10.1 EBITDA 64.7 49.4 Stock-Based Compensation
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