- **Revenue Surge**: Q3 net sales up 37% YoY, with Coconut Water growing 42% and international markets (U.K. +32%, Germany +200%).
- **Tariff Mitigation**: Brazil tariffs (50%) being rerouted to Europe, targeting 20% blended rate by end-2026. Current rate is 23%.
- **Profitability**: Gross margin expected at 36% for 2025, down from 39% in Q3 2024 due to tariffs. Net income up 50% YoY to $24 million.
- **Strategic Moves**: Treats launched nationally in the U.S., contributing 182% growth. Europe expansion key, with Germany seeing 47% net sales growth.
- **Risk Management**: Ocean freight rates declining but still elevated. Potential U.S. tariff waivers could reduce blended rate.

**【CEO Summary Section】**
- **Revenue Growth**: Net sales increased 37% YoY to $182 million, driven by 42% growth in Vita Coco Coconut Water. U.S. branded sales grew 21% on a 2-year basis, with strong performance in the U.K. (32%) and Germany (over 200%).
- **Category Momentum**: Coconut water is the fastest-growing beverage category, with U.S. retail growth of 22% YoY and 32% in the U.K. (Circana data). Vita Coco leads with 80%+ share in key markets.
- **Tariff Mitigation**: Brazil tariffs (50%) are being rerouted to Europe and Canada, aiming to reduce blended tariff rate to 20% by end-2026. Current blended rate is 23%.
- **International Expansion**: Europe is a key growth driver, with Germany seeing 47% net sales growth. Treats (coconut milk-based products) launched nationally in the U.S., contributing 182% growth in other products.

**【CFO Financial Commentary】**
- **Financial Highlights**: Q3 2025 net income was $24 million ($0.40 EPS), up 50% YoY. Adjusted EBITDA rose 39% to $32 million (18% of net sales). Full-year net sales guidance raised to $580-$595 million.
- **Tariff Impact**: U.S. tariffs added $14-$16 million to COGS in 2025. 60% of imported goods face tariffs, with Brazil at 50%. Ocean freight rates are declining but still elevated.
- **Cost Management**: SG&A expenses increased 30% YoY to $41 million, driven by marketing and incentive costs. Gross margin expected to be 36% for 2025, down from 39% in Q3 2024.

**【Q&A Highlights】**
- **Tariff Strategy**: Brazil production is being rerouted to Europe and Canada to reduce tariff exposure. Potential U.S. tariff waivers under trade deals could lower blended rate to 20% by end-2026.
- **Pricing**: July 2025 price increase (covering 10% tariff) shows 7% 2-year pricing impact. Further pricing may be considered in Q1 2026 if tariffs persist.
- **International Growth**: Europe is in early innings, with Germany seeing 47% net sales growth. Treats are driving new consumer trials and repeat purchases, with potential Walmart distribution in 2026.
- **Supply Chain**: Capacity additions support mid-teens growth. Direct-to-retail model in Europe yields lower margins but strong category penetration.


The Vita Coco Company, Inc. (COCO) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

COCO

COCO fundamentals

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