COCO - Vita Coco slumps after posting a surprise loss in Q4

2023-03-08 08:35:01 ET

Vita Coco Company ( NASDAQ: COCO ) dropped in early trading on Wednesday after the company reported a surprise EPS loss for Q4.

While sales were up 6% to $92M for the New York-based beverage player, gross profit came in lower than a year ago on a percentage basis. CEO Martin Roper said gross margins for the quarter benefited from front line pricing actions during the year, but were impacted by temporary supply chain costs related to the company's inventory buildup. Both domestic transportation costs and ocean freight rates were at elevated levels during the quarter.

"We have seen these inventory related expenses recede during the first months of 2023. By the end of the year we expect inventories to return to more normal levels."

Shares of Vita Coco ( COCO ) shed 10.62% in premarket trading to land at $14.89. The decline cuts into what was a +20% year-to-date rally and +60% 52-week runup in share price.

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