Vita Coco Q2 Earnings Beat on Strong Volume, 2026 Guidance Higher

On July 22, 2026, the company announced that it acquired Copra, Inc., which is among the key producers of super-premium Thai Nam Hom coconut water.

Over the past three months, this Zacks Rank #2 (Buy) company’s shares have gained 34.3%, outpacing the industry’s 2.7% growth.

COCO Sales Gain on Broad-Based Demand

Vita Coco Coconut Water sales increased 21% year over year to $169.7 million. Case-equivalent volume advanced 15%, supported by stronger consumer demand across the company’s major markets and favorable net pricing.

Private Label sales surged 82.8% to $38.2 million. The improvement reflected new and regained distribution, higher retail velocities and particularly strong shipment growth in both operating regions. Other product sales increased 9.6% to $8.2 million.

Vita Coco Margin Expands on Tariff Refunds

Gross profit jumped nearly 72% year over year to $105.3 million. Gross margin expanded substantially year over year to 48.7%, benefiting from $15.6 million of tariff refunds, improved pricing, lower ocean freight rates and reduced finished-goods costs.

The tariff refunds contributed roughly 700 basis points to the quarterly gross margin. These benefits were partly offset by higher domestic transportation expenses. Management expects current product-cost pressures to weigh on margins during the remainder of the year.

Selling, general and administrative expenses increased 16.7% to $42.2 million. The rise reflected higher incentive compensation, headcount growth, stock-based compensation and additional investments in sales and marketing.

Operating income more than doubled to $63.1 million from $25.1 million. Adjusted EBITDA climbed 129.9% to $67.2 million, as higher gross profit more than offset increased operating investments.

COCO International Growth Outpaces Americas

Americas net sales increased 21.5% to $172.5 million, slightly missing the Zacks Consensus Estimate of $174 million. Vita Coco Coconut Water sales in the region rose 14.5%, while Private Label revenues climbed 83.2%. Branded growth reflected higher volume and pricing.

International sales surged 63% to $43.7 million, outpacing the consensus estimate of $33.8 million. Vita Coco Coconut Water revenues advanced 59.8%, driven by strong volume growth in Europe, particularly in the United Kingdom and Germany. International Private Label sales increased 82.1% on robust demand and favorable pricing.

COCO Ends Quarter With Strong Liquidity

Vita Coco closed the second quarter with $278.6 million in cash and cash equivalents, up from $196.9 million at the end of 2025. The company had no outstanding balance under its $60 million revolving credit facility. 

Inventory declined 25.7% year over year to $82.9 million, reflecting strong first-half shipments. Operating cash flow totaled $96.5 million for the first six months of 2026 compared with $12 million in the prior-year period.

The company’s board subsequently approved an additional $40 million authorization, increasing the total share-repurchase program to $105 million.

Vita Coco Raises 2026 Outlook

Management raised its 2026 net sales guidance to $790-$805 million, up from $720-$735 million predicted earlier. The outlook calls for high-teens to 20% growth in Vita Coco Coconut Water sales and continued strength in Private Label shipments.

Gross margin is now expected to be approximately 40%, up from the prior projection of 38%. The revised view reflects tariff refunds, pricing and lower ocean freight costs, partly offset by higher product costs and an unfavorable product mix.

Adjusted EBITDA is projected between $154 million and $161 million, up from the previous range of $132-$138 million. The revised forecast includes the remaining-year contribution from Copra, which Vita Coco acquired in July 2026.

More Stocks to Consider in the Consumer Staples Space 

United Natural Foods UNFI, which is the leading distributor of natural, organic and specialty food and non-food products, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. 

The Zacks Consensus Estimate for United Natural Foods’ current financial-year sales indicates a drop of 2.1% from the prior-year level. UNFI delivered a trailing four-quarter earnings surprise of 29.9%, on average.

Medifast, Inc. MED, which is a leading manufacturer and distributor of clinically-proven healthy living products and programs, currently carries a Zacks Rank of 2. MED missed the average earnings surprise by a sharp margin in the trailing four quarters. 

The Zacks Consensus Estimate for Medifast’s current financial-year sales indicates decline of 25.9% from the year-ago number. 

Freshpet, Inc. FRPT, which manufactures and markets natural fresh foods, refrigerated meals, and treats for dogs and cats, currently carries a Zacks Rank of 2. 

The Zacks Consensus Estimate for Freshpet’s current financial-year sales indicates growth of 9.5% from the prior-year level. FRPT delivered a trailing four-quarter earnings surprise of 49.4%, on average.

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This article originally published on Zacks Investment Research (zacks.com).

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