In a remarkable display of market confidence, Vita Coco Co. (COCO) shares have surged to an all-time high, reaching a price level of $37.05. According to InvestingPro data, the company maintains excellent financial health with an overall score of 3.58/5, supported by strong profitability and cash flow metrics. This significant milestone underscores the company's robust performance and investor optimism in its growth potential. Over the past year, Vita Coco has witnessed an impressive 26% increase in its stock value, with a notable year-to-date return of 39%. The company's success is backed by solid fundamentals, including a healthy gross profit margin of ~40% and zero debt on its balance sheet. The achievement of this all-time high serves as a testament to Vita Coco's enduring brand strength and its ability to adapt and thrive in a competitive industry. Get access to 12 more exclusive InvestingPro Tips and a comprehensive Pro Research Report for COCO through an InvestingPro subscription.
In other recent news, The Vita Coco Company reported mixed financial results for the third quarter of 2024. Despite a 4% decrease in net sales to $133 million, mainly due to a 37% drop in private label sales, the company raised its full-year guidance for net sales and adjusted EBITDA. Interestingly, the company's flagship product, Vita Coco Coconut Water, showed an 8% growth in the U.S. and a 19% increase in the UK. The company's net income for the quarter rose to $19 million, up from $15 million in the same period last year.
Among other recent developments, the company's gross margins declined to 39% from 41% in the previous year, affected by higher ocean freight costs. However, cash on hand increased to $157 million, up from $133 million at the end of 2023, with no debt reported. Looking ahead, Vita Coco projects full-year net sales to be between $505 million and $515 million and adjusted EBITDA to range from $80 million to $84 million. Despite concerns over ocean freight costs impacting Q4 margins, the company plans to increase production capacity for 2025 and 2026, aiming to operate at 80%-85% capacity.
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