Vita Coco Reports 17.1% Revenue Growth to $168.8 Million in Q2 2025

The Vita Coco Company, Inc. reported a significant increase in financial performance for the second quarter of 2025, with net sales reaching $168.8 million, a 17.1% increase from $144.1 million in the same period last year. For the first half of 2025, the company generated $299.7 million in net sales, up from $255.8 million in the prior year. The growth was primarily driven by a 24.8% increase in sales of Vita Coco Coconut Water, which accounted for $120.5 million in the second quarter. However, the company experienced a decline in private label sales, which fell by 36.5% in the same quarter, attributed to the loss of service regions for multiple customers.

The company's gross profit for the second quarter was $61.3 million, reflecting a 4.3% increase from $58.7 million in the previous year. Despite this growth, the gross margin decreased to 36.3% from 40.8% due to rising costs associated with finished goods and transportation, as well as the initial impact of new tariffs. Operating expenses also rose, with selling, general, and administrative expenses increasing by 25.7% to $36.1 million, driven by higher marketing costs and personnel-related expenses.

In terms of operational developments, Vita Coco has expanded its product offerings, including the recent rollout of Vita Coco Treats, which contributed to a 137.6% increase in sales from the "Other" product category. The company continues to focus on geographic expansion, with significant growth in international markets, particularly in Germany and the United Kingdom, where net sales increased by 36.6% in the second quarter. As of June 30, 2025, the company reported total assets of $421.1 million, up from $362.4 million at the end of 2024.

Looking ahead, Vita Coco remains cautious about the macroeconomic environment, particularly regarding the impact of tariffs and inflation on its supply chain. The company is actively monitoring these factors and has implemented strategies to mitigate potential risks, including pricing adjustments and sourcing strategies. The management expressed confidence that current cash reserves and future cash flows will be sufficient to meet operational needs for at least the next 12 months, while also considering potential equity or debt financing for future growth initiatives.