Latest news with #TheVitaCocoCompany
Yahoo
19-05-2025
- Business
- Yahoo
Institutional investors are The Vita Coco Company, Inc.'s (NASDAQ:COCO) biggest bettors and were rewarded after last week's US$165m market cap gain
Given the large stake in the stock by institutions, Vita Coco Company's stock price might be vulnerable to their trading decisions A total of 13 investors have a majority stake in the company with 50% ownership Insider ownership in Vita Coco Company is 10% Our free stock report includes 1 warning sign investors should be aware of before investing in Vita Coco Company. Read for free now. A look at the shareholders of The Vita Coco Company, Inc. (NASDAQ:COCO) can tell us which group is most powerful. We can see that institutions own the lion's share in the company with 66% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company. And as as result, institutional investors reaped the most rewards after the company's stock price gained 8.9% last week. The one-year return on investment is currently 33% and last week's gain would have been more than welcomed. Let's take a closer look to see what the different types of shareholders can tell us about Vita Coco Company. See our latest analysis for Vita Coco Company Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. We can see that Vita Coco Company does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Vita Coco Company's earnings history below. Of course, the future is what really matters. Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Hedge funds don't have many shares in Vita Coco Company. The company's largest shareholder is Verlinvest Beverages Sa, with ownership of 13%. Meanwhile, the second and third largest shareholders, hold 5.9% and 4.7%, of the shares outstanding, respectively. Furthermore, CEO Martin Roper is the owner of 2.2% of the company's shares. Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 13 shareholders, meaning that no single shareholder has a majority interest in the ownership. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. Our most recent data indicates that insiders own a reasonable proportion of The Vita Coco Company, Inc.. Insiders own US$204m worth of shares in the US$2.0b company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently. With a 11% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Vita Coco Company. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. Our data indicates that Private Companies hold 13%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research. I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For example, we've discovered 1 warning sign for Vita Coco Company that you should be aware of before investing here. Ultimately the future is most important. You can access this free report on analyst forecasts for the company. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 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Yahoo
14-05-2025
- Business
- Yahoo
COCO Q1 Earnings Call: Outperformance on Sales, Tariff Risks Shape Full-Year Guidance
Coconut water company The Vita Coco Company (NASDAQ:COCO) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 17.2% year on year to $130.9 million. On the other hand, the company's full-year revenue guidance of $562.5 million at the midpoint came in 1.2% below analysts' estimates. Its non-GAAP profit of $0.27 per share was 26.2% above analysts' consensus estimates. Is now the time to buy COCO? Find out in our full research report (it's free). Revenue: $130.9 million vs analyst estimates of $125.8 million (17.2% year-on-year growth, 4% beat) Adjusted EPS: $0.27 vs analyst estimates of $0.22 (26.2% beat) Adjusted EBITDA: $22.51 million vs analyst estimates of $16.78 million (17.2% margin, 34.1% beat) The company reconfirmed its revenue guidance for the full year of $562.5 million at the midpoint EBITDA guidance for the full year is $89 million at the midpoint, in line with analyst expectations Operating Margin: 14.7%, down from 17% in the same quarter last year Free Cash Flow was -$10.36 million compared to -$391,000 in the same quarter last year Sales Volumes rose 20.5% year on year (-0.5% in the same quarter last year) Market Capitalization: $1.88 billion Vita Coco delivered first quarter results that exceeded Wall Street's revenue and adjusted earnings expectations, driven by strong growth in its branded coconut water products and successful innovations such as Vita Coco Treats. Management attributed the performance to robust category trends in the U.S. and Europe, as well as improved inventory levels and expanded points of distribution, particularly in convenience and foodservice channels. CEO Martin Roper pointed to 25% year-over-year growth in Vita Coco Coconut Water and highlighted the company's ability to overcome prior supply challenges, noting, "We have significantly more inventory than last year, which positions us well going into the summer." Looking ahead, management reaffirmed its full-year revenue outlook but acknowledged uncertainty surrounding U.S. tariffs and ocean freight costs. The company described recently imposed 10% tariffs on imports as a material headwind, with plans to implement price increases in the second half of the year to offset these costs. CFO Corey Baker said, "Our guidance assumes the 10% baseline tariff and does not include reciprocal tariffs that could further impact costs." Management expects pricing actions and supply chain flexibility to help maintain margins, but cautioned that tariff developments and freight volatility could influence results in coming quarters. Vita Coco's management emphasized several operational and strategic levers behind first quarter performance, focusing on product innovation, channel expansion, and supply chain readiness. While topline growth reflected strong consumer demand, leadership also addressed cost headwinds and mitigation efforts. Branded Product Momentum: Vita Coco Coconut Water saw double-digit growth in key markets, with new multipacks and flavor innovations boosting household penetration and driving category leadership. Innovation and New Launches: The introduction of Vita Coco Treats and expanded foodservice partnerships (such as with Joe's Coffee and Peet's Coffee) created new occasions and channels for coconut water consumption, supporting incremental sales. Private Label Strategy: While private label sales declined due to the phase-out of coconut oil SKUs, management reiterated the strategic importance of private label for supply chain utilization and expects to win new private label contracts in coming quarters. International Expansion: The company increased investments in the U.K., Germany, and other European markets, where coconut water household penetration remains low, indicating significant long-term potential. Germany's volume doubled year-over-year, demonstrating early success. Supply Chain Diversification and Tariff Response: Leadership detailed efforts to diversify sourcing, primarily through the Philippines and Brazil, to manage tariff exposure. Management is preparing to implement pricing to offset tariff-driven cost increases and is optimizing fixed and spot freight contracts to manage logistics volatility. Management's outlook for the remainder of the year is shaped by strong category demand, planned price increases to offset tariffs, and ongoing supply chain investments. The company's margin expectations depend largely on how external cost pressures evolve and its ability to execute planned pricing actions. Tariff and Freight Cost Management: Vita Coco is planning to raise prices in the second half of the year to counter the impact of the 10% baseline U.S. import tariff and elevated ocean freight rates. The company's diversified sourcing strategy is intended to mitigate potential future reciprocal tariffs. Continued Innovation and Channel Growth: New product lines and expanded distribution in foodservice and convenience channels are expected to drive incremental sales and brand relevance, while stepped-up international marketing should support growth abroad. Private Label Volatility and Category Health: While private label volumes are expected to fluctuate due to lost regions, management believes strong category trends and increased branded sales will offset this. Risks include uncertain consumer price elasticity and any escalation in tariff policy. Ethan Huntley (Goldman Sachs): Asked about mitigation efforts for tariffs and whether inventory was built up ahead of tariff implementation. Management explained that strong inventory was a result of normal planning, with mitigation focused on cost savings, supplier negotiations, and pricing actions if tariffs persist. Kaumil Gajrawala (Jefferies): Inquired about supply sufficiency to meet bold international growth goals. Management stated that coconut supply is ample, but expanding processing capacity requires careful multi-year planning, and they are investing accordingly. Eric Serotta (Morgan Stanley): Sought clarification on drivers of higher finished goods costs and the gross margin outlook. CFO Corey Baker cited new factories and higher startup costs as factors, and noted ocean freight rates are expected to soften later in the year, which should aid margins. Jim Salera (Stephens): Asked whether multipack growth was a result of consumers stocking up due to tariff headlines. Management responded that multipack momentum is a continuation of prior trends and not driven by recent external events. Eric Des Lauriers (Craig-Hallum): Probed management's confidence in consumer acceptance of price increases. Leadership said category prices remain affordable and are anchored by private label, suggesting manageable elasticity if competitors also raise prices. In the next few quarters, the StockStory team will focus on (1) evidence that planned price increases are being successfully implemented and accepted by consumers, (2) improvements in operating margin and gross margin as freight costs and tariffs are managed, and (3) continued expansion in international markets, especially Germany and the U.K. Progress on restoring lost Walmart shelf space and scaling new foodservice partnerships will also be important indicators of execution. Vita Coco currently trades at a forward P/E ratio of 27.2×. At this valuation, is it a buy or sell post earnings? See for yourself in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. 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Yahoo
30-04-2025
- Business
- Yahoo
Vita Coco (NASDAQ:COCO) Surprises With Strong Q1
Coconut water company The Vita Coco Company (NASDAQ:COCO) reported Q1 CY2025 results topping the market's revenue expectations , with sales up 17.2% year on year to $130.9 million. On the other hand, the company's full-year revenue guidance of $562.5 million at the midpoint came in 1.2% below analysts' estimates. Its GAAP profit of $0.31 per share was 61.9% above analysts' consensus estimates. Is now the time to buy Vita Coco? Find out in our full research report. Revenue: $130.9 million vs analyst estimates of $125.8 million (17.2% year-on-year growth, 4% beat) EPS (GAAP): $0.31 vs analyst estimates of $0.19 (61.9% beat) Adjusted EBITDA: $22.51 million vs analyst estimates of $16.78 million (17.2% margin, 34.1% beat) The company reconfirmed its revenue guidance for the full year of $562.5 million at the midpoint EBITDA guidance for the full year is $89 million at the midpoint, in line with analyst expectations Operating Margin: 14.7%, down from 17% in the same quarter last year Free Cash Flow was -$10.36 million compared to -$391,000 in the same quarter last year Sales Volumes rose 20.5% year on year (-0.5% in the same quarter last year) Market Capitalization: $1.80 billion Founded in 2004 followed by a 2021 IPO, The Vita Coco Company (NASDAQ:COCO) offers coconut water products that are a natural way to quench thirst. A company's long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. With $535.2 million in revenue over the past 12 months, Vita Coco is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers. On the bright side, it can grow faster because it has a longer list of untapped store chains to sell into. As you can see below, Vita Coco grew its sales at a decent 10.1% compounded annual growth rate over the last three years as consumers bought more of its products. This quarter, Vita Coco reported year-on-year revenue growth of 17.2%, and its $130.9 million of revenue exceeded Wall Street's estimates by 4%. Looking ahead, sell-side analysts expect revenue to grow 8.8% over the next 12 months, similar to its three-year rate. Despite the slowdown, this projection is commendable and implies the market is baking in success for its products. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Revenue growth can be broken down into changes in price and volume (the number of units sold). While both are important, volume is the lifeblood of a successful staples business as there's a ceiling to what consumers will pay for everyday goods; they can always trade down to non-branded products if the branded versions are too expensive. Vita Coco's average quarterly volume growth was a robust 8.4% over the last two years. This is good because meaningful volume growth is hard to come by in the stable consumer staples sector. In Vita Coco's Q1 2025, sales volumes jumped 20.5% year on year. This result was an acceleration from its historical levels, certainly a positive signal. We were impressed by how significantly Vita Coco blew past analysts' EPS expectations this quarter. We were also excited its EBITDA outperformed Wall Street's estimates by a wide margin. On the other hand, its full-year revenue guidance slightly missed. Overall, we think this was still a solid quarter with some key areas of upside. The stock traded up 3.5% to $32.75 immediately after reporting. Sure, Vita Coco had a solid quarter, but if we look at the bigger picture, is this stock a buy? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
