Why did COCO's Q2 earnings exceed expectations slightly?

The Vita Coco Company (COCO) reported a revenue surprise of $6.59 million for Q4 2024, with a net income of $3.37 million, which is a testament to the company's strong financial performance and ability to exceed market expectations. **Private Label Business Challenges and Inventory Constraints**: 1. **Impact of Private Label Retailers**: COCO anticipates losing some regional private label business in 2025, with impacts beginning in Q2 and intensifying in subsequent quarters. This is due to previous inventory constraints leading to subpar service levels. 2. **Short Seller Report Allegations**: The company has responded to a short seller report, denying the allegations of structural internal deficiencies and mismanagement. This includes undisclosed related-party transactions and supply chain mismanagement, which could have potentially affected financial performance. Despite these challenges, COCO remains confident in its fiscal year 2025 outlook and long-term growth algorithm, expressing faith in its governance, financial reporting, and business practices. The company's strategic initiatives and market positioning in the better-for-you beverage sector are key factors in its ability to navigate challenges and deliver earnings results that slightly exceed expectations.