Coconut water company The Vita Coco Company (NASDAQ: COCO) reported Q1 CY2025 results topping the market’s revenue expectations, with sales up 17.2% year on year to $130.9 million. On the other hand, the company’s full-year revenue guidance of $562.5 million at the midpoint came in 1.2% below analysts’ estimates. Its GAAP profit of $0.31 per share was 61.9% above analysts’ consensus estimates.
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Vita Coco (COCO) Q1 CY2025 Highlights:
- Revenue: $130.9 million vs analyst estimates of $125.8 million (17.2% year-on-year growth, 4% beat)
- EPS (GAAP): $0.31 vs analyst estimates of $0.19 (61.9% beat)
- Adjusted EBITDA: $22.51 million vs analyst estimates of $16.78 million (17.2% margin, 34.1% beat)
- The company reconfirmed its revenue guidance for the full year of $562.5 million at the midpoint
- EBITDA guidance for the full year is $89 million at the midpoint, in line with analyst expectations
- Operating Margin: 14.7%, down from 17% in the same quarter last year
- Free Cash Flow was -$10.36 million compared to -$391,000 in the same quarter last year
- Sales Volumes rose 20.5% year on year (-0.5% in the same quarter last year)
- Market Capitalization: $1.80 billion
Company Overview
Founded in 2004 followed by a 2021 IPO, The Vita Coco Company (NASDAQ: COCO) offers coconut water products that are a natural way to quench thirst.
Sales Growth
A company’s long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years.
With $535.2 million in revenue over the past 12 months, Vita Coco is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers. On the bright side, it can grow faster because it has a longer list of untapped store chains to sell into.
As you can see below, Vita Coco grew its sales at a decent 10.1% compounded annual growth rate over the last three years as consumers bought more of its products.
This quarter, Vita Coco reported year-on-year revenue growth of 17.2%, and its $130.9 million of revenue exceeded Wall Street’s estimates by 4%.
Looking ahead, sell-side analysts expect revenue to grow 8.8% over the next 12 months, similar to its three-year rate. Despite the slowdown, this projection is commendable and implies the market is baking in success for its products.
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Volume Growth
Revenue growth can be broken down into changes in price and volume (the number of units sold). While both are important, volume is the lifeblood of a successful staples business as there’s a ceiling to what consumers will pay for everyday goods; they can always trade down to non-branded products if the branded versions are too expensive.
Vita Coco’s average quarterly volume growth was a robust 8.4% over the last two years. This is good because meaningful volume growth is hard to come by in the stable consumer staples sector. 
In Vita Coco’s Q1 2025, sales volumes jumped 20.5% year on year. This result was an acceleration from its historical levels, certainly a positive signal.
Key Takeaways from Vita Coco’s Q1 Results
We were impressed by how significantly Vita Coco blew past analysts’ EPS expectations this quarter. We were also excited its EBITDA outperformed Wall Street’s estimates by a wide margin. On the other hand, its full-year revenue guidance slightly missed. Overall, we think this was still a solid quarter with some key areas of upside. The stock traded up 3.5% to $32.75 immediately after reporting.
Sure, Vita Coco had a solid quarter, but if we look at the bigger picture, is this stock a buy? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.
