Vita Coco Expects FY24 Net Sales of $495M-$505M Vs $503.27M Est
Portfolio Pulse from Benzinga Newsdesk
Vita Coco projects FY24 net sales of $495M-$505M, slightly below the $503.27M estimate. The forecast accounts for growth in coconut water volume but anticipates declines in the coconut oil business and price/mix effects. Gross margin is expected to be 36%-38%, with SG&A expenses roughly equal to 2023. Adjusted EBITDA is predicted to be $74M-$78M, considering potential transportation cost increases due to higher ocean freight rates.
February 28, 2024 | 12:38 pm
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NEGATIVE IMPACT
Vita Coco expects FY24 net sales to be slightly below estimates, with mixed performance across its product lines and potential cost pressures from transportation.
The slight miss in projected net sales compared to estimates, combined with the expected decrease in the coconut oil business and potential cost pressures from increased transportation expenses, could lead to a negative short-term impact on Vita Coco's stock price. However, the growth in coconut water volume and stable SG&A expenses provide some positive counterbalance.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100