COCO - Vita Coco shares rise on healthy revenue growth margin improvement

Vita Coco ( NASDAQ: COCO ) shares rose on Wednesday as sales and margins in its second quarter earnings impressed.

For the second quarter, the New York-based beverage company posted a mixed result in terms of headline numbers . However, a 13% rise in revenue to beat consensus estimates overshadowed profits that came up slightly short of expectations. Additionally, margins improved 500 basis points sequentially amid pricing increases, suggesting an ability to push profits higher moving forward despite inflationary pressures.

“While continuing to navigate a challenging operating and global macroenvironment, we have begun our journey to profitability recovery and remain confident in achieving our long term Adjusted EBITDA margin goals of high teens percentage of net sales,” CEO Martin Roper said. “We are especially pleased with the strength and resilience of our supply chain as we continue to face historically high transportation costs, primarily ocean freight rates.”

Pricing moves are anticipated to “fully offset the current elevated costs seen in transportation and logistics,” according to the company.

Shares rose 5.29% on Wednesday, recouping some losses marked in the days leading up to the earning release. The rise was also aided by better than anticipated inflation data that lifted much of the consumer discretionary sector on Wednesday .

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