$COCO reports Q4 and full year 2022 results, faces supply chain challenges and looks to growth opportunities
Mar 8th 2023, 12:15 pm
Analyst Summary: The Vita Coco Company, Inc. reported financial results for Q4 and full year 2022. The company experienced a strong top-line growth driven by the continued strength of their Vita Coco brand. However, increased transportation costs due to global shipping pressures and increased domestic transportation costs decreased gross margins. The company's Executive Chairman, Michael Kirban, stated that despite the challenges of the supply chain environment in 2022, the team performed well, and he is excited to see those challenges ease starting in early 2023. The company expects continued growth in Vita Coco Coconut Water sales and improvement in gross margins as supply chain costs are reduced throughout the year. The company is committed to investing in marketing and sales execution to maintain momentum. The company provided 2023 guidance with Vita Coco Coconut Water expected to grow mid-teens and Private Label net sales to be approximately flat compared to 2022. The company's gross margins are expected to improve in the next two quarters due to improved transportation costs, with contributions from price and mix. However, uncertainty and instability of the current operating environment, global economies, and geopolitical landscape could affect future results. The company's total net sales, net income, and Adjusted EBITDA for the year ended December 31, 2022, increased compared to the same period in 2021. Investors should consider the non-GAAP financial measures and the forward-looking statements in conjunction with the GAAP measures included in the earnings release.