Q3 2024 Vita Coco Company Inc Earnings Call Transcript
Key Points
- The Vita Coco Co Inc (COCO) reported strong growth in the coconut water category, with double-digit growth year-to-date through the end of September.
- The Vita Coco brand grew 8% in retail dollars in the US and 19% in the UK, indicating strong market performance.
- The company is seeing strong demand for its private label coconut water, which remains a strategically important aspect of its business.
- Vita Coco Juice is gaining share at retail with 39% growth year-to-date, and the introduction of the Vita Coco coconut 1L pack into a key convenience store chain has been successful.
- The international business remains healthy, with strong performance in Europe, particularly in the UK and Germany, where the category has grown over 50% over the last year.
- The Vita Coco Co Inc (COCO) faced significant inventory shortages during the quarter due to limited ocean container availability, impacting sales growth.
- Net sales were down 4% in the third quarter, with growth in Vita Coco coconut water offset by weakness in private label shipments.
- The company experienced a decrease in the growth rate for US retail scan sales of Vita Coco, reflecting inventory challenges and reduced promotional activity.
- Gross margins were down versus the first two quarters of the year due to higher ocean freight costs.
- The company had to reduce its promotional activity significantly, including not participating in a major branded club customer promotion, which impacted sales.
Hello and welcome to the Vita Coco Company's third quarter, 2024 earnings conference call. My name is Steven. I'll be coordinating your call today following the prepared remarks. We will open the call to your questions with instructions to be given at that time.
I'll now hand the call over to Alex Liscombe with ICR.
Thank you and welcome to the Vita Cocoa Company third quarter, 2024 earnings results conference call. Today's call is being recorded. With us, Mr Mike Kirban, Executive Chairman, Martin Roper, Chief Executive Officer and Corey Baker, Chief Financial Officer.
By now, everyone should have access to the company's third quarter earnings release issued earlier today. This information is available on the investor relations section of the Vita Coco Company's website at investors.thevitacococompany.com
Also on the website, there is an accompanying presentation of our commercial and financial performance results. Certain comments made on this call
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