The Vita Coco Company, Inc. · NASDAQ:COCO

The Vita Coco — Q3 2022 Earnings Presentation

20 slides from The Vita Coco's earnings presentation, Nov 9, 2022

  1. Slide 1: Building the Better Beverage Platform of the Future: 3rd Quarter 2022 Results

    BUILDING THE BETTER BEVERAGE PLATFORM OF THE FUTURE 3RD QUARTER 2022 RESULTS 1 ©2022 THE VITA COCO COMPANY. PROPRIETARY

  2. 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

  3. Slide 3: Third Quarter 2022 Performance Highlights

    THIRD QUARTER 2022 PERFORMANCE HIGHLIGHTS NET SALES % GROWTH VS. PRIOR YEAR (PY) NET SALES: • Strong Vita Coco Coconut Water (VCCW) growth of +14% vs. Q3 $124MM / +7% vs. PY 2021 despite $2MM impact from Americas International FX2 GROSS PROFIT: $33MM / 26% margin • Americas VCCW net sales growth of

  4. Slide 4: 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 RESPONSIBLE BUSINESS, DIFFERENTIATED MARKET CULTURE, ASSET-LITE & VALUES SUPPLY CHAIN OMNICHANNEL BUSINESS WITH BLUE-CHIP

  5. Slide 5: 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

  6. Slide 6: Long-Term Growth Algorithm

    LONG-TERM LONG TERM GROWTH ALGORITHM LONG-TERM TARGET RANGE1 KEY INVESTMENT THEMES o Established beverage platform with strong balance sheet, built for long term growth o Net Sales growth primarily driven by Vita NET SALES MID Coco Coconut Water with potential additional GROWTH TEENS upsides from in

  7. Slide 7: Vita Coco Brand Remains Strong

    VITA COCO BRAND REMAINS STRONG OUT OF STOCKS IMPACTED Q3 2022 BUT CORE EXCL. OUT OF STOCKS, LONG TERM TRENDS CONTINUE TO RANGE GREW MID-TEENS ACCELERATE TOTAL US MULO+C $ % CHANGE 2022 Q3 vs. 2021 Q3 TOTAL US MULO+C $ % CHANGE 2022 Q3 vs. 2019 Q3 21.2% 61.3% 60.4% 57.0% 12.0% 12.3% 10.9% 9.4% 8.1% 3

  8. Slide 8: Vita Coco Household Penetration and Spend Per Trip Continued to Grow

    VITA COCO HOUSEHOLD PENETRATION AND SPEND PER TRIP CONTINUED TO GROW YEAR ON YEAR OUR CONSUMER BASE IS GROWING PURCHASE FREQUENCY IS STABLE CONSUMERS ARE SPENDING MORE …+7% MORE HOUSEHOLDS …SHOPPING 1.5% LESS OFTEN FOR VC …SPENDING +7% MORE PER TRIP VITA COCO % HH PENETRATION VITA COCO VITA COCO SPE

  9. Slide 9: Key Distribution Growth Initiatives for 2023

    KEY DISTRIBUTION GROWTH INITIATIVES FOR 2023 TO CONTINUE BRAND AND CATEGORY MOMENTUM JUICE : ORGANIC : MULTIPACKS: Brings new consumers into the brand Offers convenience to heavy buyers Brings consumers seeking organic with a bolder, sweeter taste profile offerings into the brand OPPORTUNITY: Multip

  10. Slide 10: Investing in Programs and Platforms to Add New Consumer Occasions

    INVESTING IN PROGRAMS AND PLATFORMS TO ADD NEW CONSUMER OCCASIONS AND BUILD BRAND EQUITY Leveraging Brand partnerships Entering new occasions with to introduce the brand to Building new platforms in an expanded Food Service and new consumers high growth categories On-Premise footprint New Barista Vi

  11. Slide 11: Third Quarter and Year to Date Financial Highlights

    THIRD QUARTER AND YEAR TO DATE FINANCIAL HIGHLIGHTS Q3 2021 Q3 2022 Sep-YTD 2021 Sep-YTD 2022 Versus Q2 15% 7% 2022: Growth Growth $124 $336 NET SALES $293 YTD Volume X $116 Q3 2022 (CE) growth is reflects a 90 +12% basis point -7ppts improvement -7ppts margin in Gross Gross Margin margin GROSS Marg

  12. Slide 12: Cost of Goods $0.89 per CE Higher Than Q3 2021

    COST OF GOODS $0.89 PER CE HIGHER THAN Q3 2021, OR 15% INCREASE IN TRANSPORTATION COSTS AND MIX IMPACTS COGS BREAKDOWN ($ USD IN MILLIONS) Q3 2021A Q3 2022A ESTIMATED YOY TRANSPORTATION FINISHED GOODS RATE IMPACT OF OCEAN FREIGHT & DOMESTIC 34% 37% LOGISTICS: $77 $91 66% 63% ~$7MM ON GROSS PROFIT AN

  13. Slide 13: Absorbed $28MM YTD vs. 2021 Due to Transportation Cost Increases

    ABSORBED $28MM YTD VS. 2021 AND $49MM YTD VS. 2020 DUE TO INCREASES IN TRANSPORTATION COSTS ON A RATE BASIS COGS BREAKDOWN ($ USD IN MILLIONS) 2020A Sep-2021A YTD Sep-2022A YTD ESTIMATED YOY TRANSPORTATION FINISHED GOODS RATE IMPACT OF OCEAN 23% 31% FREIGHT & DOMESTIC 38% LOGISTICS: $206 $201 $255 6

  14. Slide 14: For Illustrative Purposes Only

    ©2022 THE VITA COCO COMPANY. PROPRIETARY FOR ILLUSTRATIVE PURPOSES ONLY

  15. Slide 15: Updating 2022 Full Year Guidance

    UPDATING 2022 FULL YEAR GUIDANCE KEY HIGHLIGHTS • Adjusted to reflect net sales lost in Q3 $422-427MM / 2022, projected impact of VCCW out of NET SALES +11-12%1 stocks return, FX impact, current VCCW and private label trends against a very strong performance last year, and lower impact of pricing in

  16. Slide 16: Appendix

    APPENDIX ©©22002222 TTHHEE VVI TI TAA CCOOCCOO CCOOMMPPAANNYY. . PPRROOPPRRI EI ETTAARRYY A N D C O N F I D E N T I A L 16

  17. Slide 17: Q3 2022 P&L Summary

    Q3 2022 P&L SUMMARY $ & CE UNITS IN MM Q3’22 Q3’21 VS. PY VOLUME (CE) / % gr. 13.3 12.9 3% 0.4 NET SALES / % gr. 124.0 115.7 7% 8.3 GROSS PROFIT / % marg. 32.6 / 26.3% 38.5 / 33.3% -15% (5.9) SG&A 24.0 20.7 16% 3.3 INCOME FROM OPERATIONS 8.6 17.8 -52% (9.2) NET INCOME / % marg. 7.3 / 6% 13.0 / 11% -

  18. Slide 18: YTD 2022 P&L Summary

    YTD 2022 P&L SUMMARY $ & CE UNITS IN MM YTD 22 YTD 21 VS. PY VOLUME (CE) / % gr. 37.4 33.4 12% 4.0 NET SALES / % gr. 335.8 292.9 15% 42.9 GROSS PROFIT / % marg. 80.9 / 24.1% 91.6 / 31.3% -12% (10.6) SG&A 73.0 61.9 18% 11.1 INCOME FROM OPERATIONS 7.9 29.7 -73% (21.8) NET INCOME / % marg. 10.6 / 3.2%

  19. Slide 19: Q3 2022 Net Income to Adjusted EBITDA Reconciliation

    Q3 2022 NET INCOME TO ADJUSTED EBITDA RECONCILIATION THREE MONTHS ENDED SEP 30 2022 2021 Net Income $7.3 $13.0 Depreciation & Amortization .5 .5 Interest Income / Expense .1 .1 Income Tax Expense 1.8 2.3 EBITDA $9.7 $15.9 Stock-Based Compensation 1.5 .6 Unrealized (Gain) / Loss on Derivative Instrum

  20. Slide 20: YTD 2022 Net Income to Adjusted EBITDA Reconciliation

    YTD 2022 NET INCOME TO ADJUSTED EBITDA RECONCILIATION NINE MONTHS ENDED SEP 30 2022 2021 Net Income $10.6 $22.4 Depreciation & Amortization 1.4 1.6 Interest Income / Expense .2 .2 Income Tax Expense 3.0 6.3 EBITDA $15.3 $30.5 Stock-Based Compensation 5.7 1.6 Unrealized (Gain) / Loss on Derivative In

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