The Vita Coco Company, Inc. · NASDAQ:COCO
The Vita Coco — Q2 2024 Earnings Presentation
15 slides from The Vita Coco's earnings presentation, Jul 31, 2024
Slide 1: Building the Better Beverage Platform of the Future
BUILDING THE BETTER BEVERAGE PLATFORM OF THE FUTURE 2024 SECOND 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 Second Quarter Performance Highlights vs. Q2 2023
2024 SECOND QUARTER PERFORMANCE HIGHLIGHTS VS. Q2 2023 +3.2% NET SALES $144MM 40.8% GROSS MARGIN UP 420 BPS $32MM ADJUSTED EBITDA1 22.4% MARGIN | UP 520 BPS $19MM NET INCOME $0.32 PER SHARE $150MM CASH-ON-HAND $0MM DEBT 3 1 For all non-GAAP information throughout this presentation, the U.S. GAAP to
Slide 4: 2024 Second Quarter YTD Performance Highlights vs. Q2 2023 YTD
2024 SECOND QUARTER YTD PERFORMANCE HIGHLIGHTS VS. Q2 2023 YTD +2.6% NET SALES $256MM 41.4% GROSS MARGIN UP 740 BPS $53MM ADJUSTED EBITDA1 20.9% MARGIN | UP 767 BPS $33MM NET INCOME $0.57 PER SHARE $150MM CASH-ON-HAND $0MM DEBT 1 For all non-GAAP information throughout this presentation, the U.S. GA
Slide 5: 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 6: Strategic Growth Pillars
STRATEGIC GROWTH PILLARS EXPAND INNOVATE OUTSIDE GROW FUTURE HOUSEHOLDS AND OF THE CORE INTERNATIONAL M&A OCCASIONS Expand household Extend our brand portfolio into Drive International Explore M&A in markets and penetration, and new categories with new expansion with focus on categories that are con
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 Last 13 weeks - 6/30/2024 Last 13 weeks - 6/30/2024 1.1% (1.2)% 0.7% 1.
Slide 8: Vita Coco Coconut Water and Category Accelerated in Q2
VITA COCO COCONUT WATER AND COCONUT WATER CATEGORY ACCELERATED IN Q2 IN Q2 2024, VITA COCO +14% AND SHARE OF 50% TOTAL US MULO+C $ % CHANGE VS. PY VITA COCO US SHARE OF COCONUT WATER L52W, L26W, AND L13W THROUGH 06/30/2024 8 Source: Custom Research by The Vita Coco Company, Vita Coco Coconut Water C
Slide 9: Key US 2024 Commercial Initiatives Fueling Incremental Dollar Growth
KEY US 2024 VITA COCO COCONUT WATER COMMERCIAL INITIATIVES FUELING INCREMENTAL $ GROWTH; ACV PROGRESSING ON MULTIPACKS AND INNOVATION ACV Performance Total US – MULO ACV Q2'23 Q2'24 500mL 1ct Base 81 79 1L Base 75 75 500mL MPs 65 67 330mL MPs 51 55 1L MPs 43 46 Farmers 1L 46 48 Total US – Conv ACV Q
Slide 10: 2024 Second Quarter Financial Highlights
2024 SECOND QUARTER FINANCIAL HIGHLIGHTS Q2 2024 Versus Q2 2023: Volume (CE) increase of +4% Net Sales Growth of +3% Gross Margin Gross Margin improvement of 420bps Adj. EBITDA* increase of $8MM 10 *For all non-GAAP information throughout this presentation, the U.S. GAAP to non-GAAP reconciliations
Slide 11: Reaffirming 2024 Full Year Guidance
REAFFIRMING 2024 FULL YEAR GUIDANCE LONG-TERM GROWTH ALGORITHM2 NET SALES $500-$510MM BRANDED MID NET SALES3 TEENS GROWTH ADJUSTED $76-$82MM 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 quantifyin
Slide 12: Appendix
APPENDIX
Slide 13: Q2 2024 P&L Summary
Q2 2024 P&L SUMMARY $ & CE UNITS IN MM Q2 2024 Q2 2023 VS. PY NET SALES 144.1 139.6 3% 4.5 GROSS PROFIT / % MARGIN 58.7 / 41% 51.1 / 37% 15% 7.6 SG&A 28.8 30.2 (5)% -1.4 INCOME FROM OPERATIONS 30.0 20.8 44% 9.2 NET INCOME / % MARGIN 19.1 / 13% 18.0 / 13% 6% 1.1 EPS - DILUTED $0.32 $0.31 NON-GAAP MEA
Slide 14: 2024 YTD P&L Summary
2024 YTD P&L SUMMARY $ & CE UNITS IN MM 2024 YTD 2023 YTD VS. PY NET SALES 255.8 249.4 3% 6.4 GROSS PROFIT / % MARGIN 105.9 / 41% 84.8 / 34% 25% 21.2 SG&A 57.0 57.2 —% -0.2 INCOME FROM OPERATIONS 48.9 27.5 78% 21.4 NET INCOME / % MARGIN 33.3 / 13% 24.7 / 10% 35% 8.6 EPS - DILUTED $0.57 $0.42 NON-GAA
Slide 15: Net Income to Adjusted EBITDA Reconciliation
Q1-Q2 2024 AND Q1-Q4 2023 NET INCOME TO ADJUSTED EBITDA RECONCILIATION Three Months Ended $MM June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 NET INCOME $19.1 $14.2 $6.8 $15.2 $18.0 $6.7 Depreciation & Amortization 0.2 0.2 0.2 0.2 0.2 0.2 Interest Incom
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