COCO - Vita Coco: Good Prospects Already Baked In
2024-03-07 12:18:06 ET
Summary
- Growth and margins continue their upward trajectory with double-digit top line growth and a four-fold jump in net income for FY 2023.
- Temporary headwinds from private label business expected to present a near term drag on financials which should recede in FY2025.
- Vita Coco has numerous growth drivers medium term including overall industry growth, marketing efforts to increase household penetration and consumption occasions, packaging innovations and international expansion.
- Scale economies, supply chain optimization, and an increasing share of branded sales could support profitability improvement and earnings growth.