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    COCO
    Earnings call· Jun 2026(Q2 FY26)

    Vita Coco Company, Inc. COCO

    Jul 23, 2026 Source

    Executive summary

    The Vita Coco Company Q2 FY26 — Strong Growth Continues, Strategic Copra Acquisition

    The Vita Coco Company delivered robust Q2 FY26 results, driven by strong Vita Coco and private label growth, and strategically expanded its portfolio with the acquisition of Copra Inc., entering the super premium coconut water segment. While navigating rising input costs and temporary supply chain disruptions, the company raised its full-year outlook, reflecting confidence in category trends and its enhanced market position.

    Highlights

    5

    • Global net sales increased 28% year-over-year to $216 million.

    • Consolidated gross profit rose $44 million to $105 million, with gross margins at 49%, up 1,200 basis points year-over-year.

    • Net income attributable to shareholders was $49 million or $0.82 per diluted share, compared to $23 million or $0.38 per diluted share in the prior year.

    • Adjusted EBITDA reached $67 million (31% of net sales), up from $29 million (17% of net sales) in Q2 FY25.

    • Strategic acquisition of Copra Inc. expands the company's presence in the fast-growing super premium coconut water segment.

    Concerns

    4

    • Cost of goods increases are anticipated starting mid-Q3 FY26, primarily from packaging materials, domestic logistics, and energy costs.

    • Ocean freight surcharges, driven by seasonal demand and fuel costs, are expected to impact gross margins in the second half of FY26.

    • A temporary shutdown and inventory loss at a Philippines factory due to an earthquake impacted approximately 1% of the full network's annual production.

    • Full-year guidance implies a deceleration in top-line growth (excluding Copra) and some deleverage in the second half, partly due to integration costs for the Copra acquisition.

    Guidance & targets

    10
    CategoryTargetConfidence
    Net sales
    $790 million to $805 million
    high materiality
    High
    Gross margin
    Approximately 40%
    high materiality
    Medium
    Adjusted EBITDA
    $154 million to $161 million
    high materiality
    High
    U.S. category growth
    Approximately 20%
    medium materiality
    Medium
    Consolidated Vita Coco Coconut Water net sales growth
    High teens to 20%
    medium materiality
    Medium
    U.S. Vita Coco net sales growth
    Mid- to high teens
    medium materiality
    Medium
    Private label net sales growth (U.S.)
    90% to 100%
    medium materiality
    Medium
    SG&A leverage
    Approximately 1 point as a percentage of sales
    low materiality
    Medium
    Branded price increases
    Low single digits
    low materiality
    Medium
    Long-term financial algorithm
    Branded net sales growth in the mid-teens and adjusted EBITDA in the high teens
    high materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Americas
    Growth led by Vita Coco Coconut Water and strong private label performance, benefiting from distribution gains.
    Vita Coco Coconut Water net sales: $138 million (up 15%)Vita Coco Coconut Water volume increase: 7%Vita Coco Coconut Water net price/mix benefit: 7%Private label net sales: $27 million (up 83%)Private label volume increase: 82%Private label net price/mix increase: 1%
    		$172 million21%——
    International
    Continued exceptional net sales growth across both branded and private label coconut water.
    Vita Coco Coconut Water net sales growth: 60%Private label net sales growth: 82%
    		—63%——

    Operational metrics

    32
    Retail dollar growth (U.S. coconut water category)
    29%
    YTD

    According to retail scan data.

    Retail dollar growth (European coconut water category)
    65%
    YTD

    According to retail scan data.

    Retail dollar growth (U.S. Vita Coco Coconut Water ex-Treats)
    29%
    YTD

    Reflects strong brand momentum.

    Retail dollar growth (European Vita Coco Coconut Water)
    57%
    YTD

    Reflects strong brand momentum.

    U.S. Vita Coco branded business growth drivers
    ~2/3
    Q2 FY26

    Indicative of very strong brand momentum.

    Walmart reset impact on U.S. scan results
    5%
    YTD

    Added to retail dollar scan growth rate from November reset.

    Cost of goods benefits
    —vs. FY25
    YTD 2026

    Partially offset by increased domestic logistics and higher finished goods costs.

    Ocean freight coverage
    ~50%
    Balance of year

    Secured through additional ocean freight contracts.

    Cost of goods increases (anticipated)
    —
    Mid-Q3 FY26 onwards

    Most of these increases will start impacting gross margin mid-third quarter as inventory flows through to customers.

    Philippines factory production impact
    ~1%
    Annual

    Due to earthquake damage to warehouses and other structures near General Santos.

    Capacity needs (2028)
    Increased targets
    2028

    Due to strength of coconut water growth trends year-to-date.

    Copra net sales
    Above $100 million
    CY26

    Copra projects their full year calendar net sales.

    Copra brand growth (U.S.)
    42%
    YTD

    Showing great growth and a nice platform for building a branded competitor.

    Copra business mix
    ~90%
    Current

    Primarily focused on Nam Hom coconut water.

    Consolidated gross profit
    $105 millionup $44 million YoY
    Q2 FY26

    Driven by strong net sales growth.

    Effective tax rate
    23%vs 19% last year
    Q2 FY26

    Increase largely driven by timing of tax credit recognition.

    Effective tax rate
    21%
    YTD

    In line with expectations for the year.

    Cash on hand
    $279 million
    As of June 30, 2026

    Balance sheet remained very strong with no debt under revolving credit facility.

    Cash generated
    $82 million
    YTD

    Driven by strong net income and inventory reduction, partially offset by share repurchases and net working capital outflow.

    Inventory reduction
    $28 million
    YTD

    Contributed to cash generation.

    Share repurchases
    $20 million
    YTD

    Partially offset cash generation.

    Stock buyback authorization increase
    $40 million
    July 2026

    Approved by the Board.

    Remaining stock buyback authorization
    $61 millionout of $105 million total
    Current

    Available under the total authorized amount.

    Super premium cold segment share of U.S. coconut water sales
    13%
    Current

    Estimated to represent approximately 13% of U.S. coconut water sales.

    Super premium cold segment growth
    Slightly fasterthan the rest of the category
    YTD

    The segment is growing slightly faster than the rest of the category year-to-date.

    Private label gross margin
    Lowerthan branded
    Current

    Operating with a large percentage of private label, which is lighter touch from an SG&A perspective, but lower gross margin perspective.

    Ocean freight flow-through to P&L
    ~3 months
    Typical

    Expected timing for increases to impact the P&L.

    Current capacity utilization
    95%
    Current

    Running closer to 95% capacity, limiting ability to go beyond.

    TETRA line addition timeline
    9-12 months
    Typical

    Timeframe for adding a new TETRA line.

    Partnership addition timeline
    18-24 months
    Typical

    Timeframe for adding new partnerships.

    Super premium product pricing
    2xVita Coco on a per liter basis
    Current

    This type of product typically sells at twice the price of Vita Coco.

    Super premium household penetration
    60%of Vita Coco
    Current

    Order of magnitude lower household penetration compared to Vita Coco.

    Industry KPIs

    9
    MetricValueDetails
    Category brand shareGained branded share
    EPS organic EPS growth$0.82per diluted share
    Gross operating margin49%%
    Organic revenue growth—
    Geographic regional mix—
    Unit case volume growth—
    Aluminum packaging cost impact—
    Freight logistics cost pressure—
    Pack architecture pricing actionsLow single digits%

    Deals & partnerships

    1
    Copra Inc.Acquisition of a leading supplier in the super premium Thai Nam Hom coconut water segment, including manufacturing operations in Thailand and the Copra brand.$175 million initial payment (80% cash, 20% stock); additional consideration in 2029 based on 2028 gross profit ($45 million floor, $100 million cap)

    Retaining all key employees and maintaining operations in Thailand. Enhances supply chain with unique Nam Hom sourcing and manufacturing capabilities.

    Capital programs

    1
    Copra Extraction Output Expansionunderway$11 million

    Benefit: Double extraction output and improve efficiency

    Investment to scale capacity at the newly acquired Copra facility in Thailand to support growth plans and unlock capacity.

    Risks & headwinds

    4
    Cost of Goods InflationMid-Q3 FY26 onwards

    Expected to impact gross margin mid-Q3 FY26. Primarily packaging materials, domestic logistics costs, and increased energy costs affecting suppliers.

    Mitigation: Tariff refunds mitigate immediate consumer impact; potential price increases in early 2027 if costs persist.

    Ocean Freight SurchargesQ3 and Q4 FY26

    Announced during Q2 FY26, unclear how long effective. Expected to flow into P&L in Q3 and more importantly Q4 FY26.

    Mitigation: Entered additional ocean freight contracts for ~50% coverage at fixed rates (subject to adjustments); management believes these are temporary effects.

    Philippines Factory DamageTemporary shutdown during Q2 FY26

    Loss of several weeks of production and a couple of weeks of inventory, representing ~1% of full network annual production.

    Mitigation: Cleanup and restart of operations.

    Implied H2 Deceleration/DeleverageH2 FY26

    Guidance implies deceleration on top line (ex-Copra) and deleverage in H2 FY26.

    Mitigation: Management attributes to inventory builds, Walmart load-ins, and cautious integration costs for Copra; underlying margin is stronger than previously indicated.

    What to watch in Q3 FY26

    5

    H2 Net Sales and Adjusted EBITDA Trajectory

    Next quarter (Q3 FY26 results)
    CurrentQ2 net sales up 28%, adjusted EBITDA up significantly. Full-year guidance implies H2 deceleration.
    TargetVerify if H2 net sales and adjusted EBITDA meet or exceed implied guidance, and if deceleration drivers (inventory builds, Walmart load-ins) materialize as expected.

    Why it matters

    To assess the underlying momentum of the core business and the impact of anticipated headwinds and integration costs on profitability.

    But your guidance, I guess, ex Copra implies a deceleration on the top line in the second half, I believe. So I wanted to understand the drivers of that, maybe how conservative that is. And then your guidance also implies a fair amount of deleverage in the back half.

    Q&A highlights

    7

    Why does H2 guidance imply a deceleration in top-line growth (ex-Copra) and deleverage, and can the cost impacts be quantified?

    H2 guidance reflects stronger trends than previously expected, but accounts for inventory builds, Walmart load-ins, and anticipated cost inflation (freight, finished goods) impacting margins. SG&A deleverage is partly due to cautious integration costs for Copra.

    “So we're raising the back half from our previous guidance. So there is stronger trends coming into the back half. But we do run into the inventory builds at distributor, Walmart load-in, those items that we've previously talked about.”

    asked by Bonnie Herzog · answered by Corey Baker

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Q2 Performance and Category Momentum

    The Vita Coco Company reported a robust second quarter, with net sales increasing 28% to $216 million and gross profit reaching $105 million, a 49% margin. This performance was fueled by continued strong growth in the coconut water category, which saw year-to-date retail dollar growth of 29% in the U.S. and 65% in measured European markets. Vita Coco Coconut Water itself grew 29% year-to-date in U.S. retail dollars, demonstrating strong brand momentum and market share gains.

    02

    Strategic Acquisition of Copra Inc.

    The company announced the acquisition of Copra Inc., a leading player in the super premium Thai Nam Hom coconut water segment. This acquisition provides Vita Coco with greater access to unique sourcing in Thailand, strengthens its position in the fast-growing chilled segment (13% of U.S. coconut water sales), and adds both private label and branded product capabilities. The deal is expected to be accretive to adjusted EBITDA margins post-integration and enhances Vita Coco's M&A capabilities.

    03

    Capacity Expansion and Supply Chain Focus

    To support the rapid growth of the coconut water category, Vita Coco is increasing its 2028 capacity targets and working with multiple partners to secure long-term supply. The Copra acquisition includes a factory in Ratchaburi province, ideally situated for Nam Hom coconut sourcing, and Vita Coco plans to invest approximately $11 million in CapEx to double extraction output and improve efficiency at this facility. This strategic focus on supply chain mastery is seen as a key competitive advantage.

    04

    Navigating Cost Pressures and Tariff Refunds

    While benefiting from tariff refunds and lower ocean freight costs year-to-date, the company anticipates cost of goods increases starting mid-Q3 due to packaging materials, domestic logistics, and energy. Ocean freight surcharges have also emerged, impacting H2 gross margins. Management noted that tariff refunds mitigate immediate consumer price impacts, but price increases may be considered in early 2027 if costs persist.

    05

    Private Label Business Strength

    The private label segment demonstrated exceptional growth, with U.S. net sales up 83% in Q2, driven by distribution gains and new account shipments. International private label also saw strong growth, particularly in Germany. The Copra acquisition further bolsters the private label portfolio, especially in the super premium chilled segment, where Copra is a leading supplier.

    06

    Outlook and Long-Term Vision

    The company raised its full-year net sales guidance to $790 million-$805 million and adjusted EBITDA to $154 million-$161 million, reflecting strong H1 performance and the inclusion of Copra. Management expressed high confidence in the long-term potential of the coconut water category and Vita Coco's ability to drive global growth, leveraging its strong brands, balance sheet, and enhanced supply chain capabilities.

    AI-generated summary of the company’s earnings call. Not investment advice.