The Vita Coco Company, Inc. · NASDAQ:COCO
The Vita Coco — Q4 2021 Earnings Presentation
16 slides from The Vita Coco's earnings presentation, Mar 10, 2022
Slide 1: The Pioneer in the Natural & Plant-Based Revolution
THE PIONEER IN THE NATURAL & PLANT-BASED REVOLUTION 4TH QUARTER & FULL YEAR 2021 RESULTS 1 ©2022 THE VITA COCO COMPANY. PROPRIETARY AND CONFIDENTIAL
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: Full Year 2021 Performance Highlights
FULL YEAR 2021 PERFORMANCE HIGHLIGHTS NET SALES % GROWTH VS. PRIOR YEAR (PY) • Successful year with IPO NET SALES: completion, and $380MM / +22% vs. PY organizational capability Americas International that continues to build and deliver ADJUSTED EBITDA*: • Strong top line momentum $37MM / 10% margin
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
Slide 5: Coconut Water Category Is One of the Fastest Growing at Retail
THE COCONUT WATER CATEGORY IS ONE OF THE FASTEST GROWING CATEGORIES AT RETAIL, DRIVEN BY STRONG VELOCITY GAINS TOTAL US MULO + C $ % CHANGE VS PY TOTAL US MULO + C VELOCITY % CHANGE VS PY By company defined categories By company defined categories 23.3% 22.3% 25.1% 24.2% 19.5% 17.8% 17.3% 21.0% 20.6
Slide 6: Vita Coco Brand Growth Strengthened Throughout the Year
VITA COCO BRAND GROWTH STRENGTHENED THROUGHOUT THE YEAR VITA COCO IS DRIVING COCONUT WATER CATEGORY VITA COCO GREW SHARE IN 2021 +7% GROWTH ACCELERATION TO ALMOST 50% SHARE TOTAL US MULO+C $ % CHANGE VS PY #1 COCONUT WATER BRAND IN THE US! 44.1% 38.9% 37.0% 34.7% 19.4% ALL OTHER 17.3% 14.9% 13.8% BR
Slide 7: 2021 Growth Came From All Channels; Distribution Expansion Expected in 2022
2021 GROWTH CAME FROM ALL CHANNELS DRIVEN BY VELOCITY AND WE ANTICIPATE SIGNIFICANT DISTRIBUTION EXPANSION IN 2022 VITA COCO $ % CHANGE VS YA L52W L26W L13W YTD 2022 44.4% 46.1% 44.1% 42.4% 41.0% 38.9% 37.9% 37.0% 35.7% 34.7% 34.6% 34.8% 31.0% 32.8% 27.2% 22.4% Total US MULO + C Total US Food Total
Slide 8: Vita Coco Household Penetration and Buy Rates Are Growing Simultaneously
VITA COCO HOUSEHOLD PENETRATION AND BUY RATES ARE GROWING SIMULTANEOUSLY OUR CONSUMER BASE IS GROWING SHOPPERS BUY US MORE OFTEN AND SPEND MORE …+20% MORE HOUSEHOLDS …SHOPPING +11% MORE OFTEN FOR VC …SHOPPING +22% MORE PER TRIP VITA COCO % HH PENETRATION VITA COCO VITA COCO SPEND PER TRIP PURCHASE F
Slide 9: Key Commercial Initiatives
KEY COMMERCIAL INITIATIVES AMERICAS INTERNATIONAL ✓ COMMERCIAL EXECUTION TO GAIN SHARE AT RETAIL COMMERCIAL EXECUTION TO GROW THE CATEGORY AT PORTFOLIO ✓ MULTIPACK TO TRADE CONSUMERS UP AND GAIN SHARE OF SHELF RETAIL CORE ✓ NET PRICING ACTIONS TO COVER COGS PRESSURE ✓ SIMPLIFYING PORTFOLIO AND GENER
Slide 10: Q4 and Full Year Financial Highlights
Q4 FINANCIAL HIGHLIGHTS FULL YEAR FINANCIAL HIGHLIGHTS Q4 2020A Q4 2021A FY 2020A FY 2021A +25% +22% NET $87 NET $380 REVENUE X $70 X REVENUE $311 (4%) 8% GROSS $23 $22 GROSS $105 $113 PROFIT X X PROFIT 32.4% 24.9% 33.8% 29.8% Margin Margin Margin Margin 5% (89%) ADJUSTED ADJUSTED $35 $37 EBITDA* X
Slide 11: Significant Inflation Pressure on Cost of Goods Sold Driven by Transportation
WE HAVE EXPERIENCED SIGNIFICANT INFLATION PRESSURE ON OUR COST OF GOODS SOLD DRIVEN BY TRANSPORTATION, WHICH ACCELERATED IN Q4 COGS BREAKDOWN ($ USD IN MILLIONS) $ COGS PER CE CHANGE VERSUS PRIOR YEAR 2020A TRANSPORTATION FINISH GOODS 2021A Change vs. PY $/CE % 23% ESTIMATED YOY 33% RATE IMPACT OF Q
Slide 12: 2022 Guidance
2022 GUIDANCE COMMENTARY o TOP LINE EXPANSION SUPPORTED BY CONTINUED NET SALES STRONG CASE EQUIVALENT VOLUME GROWTH, $MM 440 — 455 COMBINED WITH PRICE/MIX BENEFITS o ANTICIPATE CONTINUED GROSS PROFIT MARGIN PRESSURE MOSTLY DRIVEN BY TRANSPORTATION, WITH TOTAL COGS PER CE INFLATION EXPECTED TO RUN IN
Slide 13: Long-Term Growth Algorithm
LONG-TERM GROWTH ALGORITHM LONG-TERM TARGET RANGE1 KEY DRIVERS o FOCUS ON CORE VITA COCO BRAND WITH POTENTIAL UPSIDES FROM BREAKTHROUGH INNOVATIONS AND/OR M&A NET SALES MID o TARGET GROSS MARGIN EXPANSION OVER TIME GROWTH TEENS DRIVEN BY RETURN TO MORE NORMALIZED TRANSPORTATION COSTS LEVELS AND FAVO
Slide 14: Appendix
APPENDIX ©©22002222 TTHHEE VVI TI TAA CCOOCCOO CCOOMMPPAANNYY. . PPRROOPPRRI EI ETTAARRYY AANNDD CCOONNFFI D 14 I DEENNTTI A I ALL
Slide 15: 2021 P&L Summary
2021 P&L SUMMARY $ & CE UNITS IN MM Q4 Vs PY FY Vs PY % $ % $ VOLUME (CE) / % gr. 9.4 21% 1.6 42.8 18% 6.5 NET SALES / % gr. 86.6 25% 17.1 379.5 22% 68.9 GROSS PROFIT / % marg. 21.6/24.9% -4% (1.0) 113.1/29.8% 8% 8.3 SG & A 26.7 41% 7.7 88.6 19% 14.2 CONTINGENT LIABILITY 0 100% 16.4 0 100% 16.4 INCO
Slide 16: Net Income to EBITDA Reconciliation
NET INCOME TO EBITDA RECONCILIATION THREE MONTHS ENDING DEC 31 FULL YEAR 2021 2020 2021 2020 2021 NET INCOME $17 ($3) $33 $19 DEPRECIATION & AMORTIZATION 1 0 2 2 INTEREST INCOME / EXPENSE 0 0 0 0 INCOME TAX EXPENSE 6 (1) 11 5 EBITDA $24 ($4) $46 $27 STOCK-BASED COMPENSATION 0 2 2 3 UNREALIZED LOSS O
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