Functional beverage firm The Vita Coco Company has reported net sales growth of 14%, to $110 million (€99.5 million), in the first quarter of its financial year.
The company attributed this growth to the performance of its Vita Coco Coconut Water brand, which saw growth of 17% during the quarter.
Gross profit amounted to $34 million (€30.7 million), up from $19 million (€17 million) in the same period last year.
Gross margin increased approximately 11 percentage points to 30.7% in the first quarter compared to 19.8% in the same period a year ago.
Improved Transportation Costs
Vito Coco added that the increase in gross margin was primarily driven by improved transportation costs and the result of 2022 pricing actions.
Vito Coco has forecast net sales growth of approximately 9% to 12% in full-year 2023, with Vita Coco Coconut Water expected to grow in the mid-teens range.
The company expects adjusted EBITDA in the range of $54 million (€49 million) to $59 million (€53.5 million), up from its previous outlook ranging between $52 million (€47.2 million) to $58 million (€52.6 million).
"Gross margins for the quarter were slightly better than expected due to cost efficiencies in domestic transportation, and this makes us even more comfortable with our full year gross margin guidance based on the current cost environment and pricing actions already executed," said Martin Roper, chief executive officer of The Vita Coco Company.
Roper added, "As gross margins return closer to historical levels, we are able to invest more heavily in both our brands and organization for the balance of the year to remain well-positioned for long-term sustainable growth and profitability."
© 2023 European Supermarket Magazine – your source for the latest A-Brands news. Article by Robert McHugh. Click subscribe to sign up to ESM: European Supermarket Magazine.