Vita Coco Raises 2026 Outlook on Strong Q3 Sales and Copra Acquisition

The Vita Coco Company raised its full year 2026 guidance on Wednesday, citing a 34 percent increase in third quarter net sales and the integration of the Copra acquisition. The company, listed on the NASDAQ under the ticker COCO, now expects annual net sales between $810 million and $820 million, up from a previous range of $790 million to $805 million. Non-GAAP adjusted EBITDA guidance was also increased to a range of $170 million to $175 million, compared to the prior outlook of $154 million to $161 million.

For the quarter ended September 30, 2026, Vita Coco reported net sales of $244 million, a $62 million increase over the prior year period. Organic net sales growth, which excludes the impact of Copra, stood at 18 percent. The acquisition of Copra, a producer of super premium Thai Nam Hom coconut water completed in July 2026, contributed significantly to private label results. Private label net sales grew 152 percent in the third quarter, while the core Vita Coco Coconut Water brand saw a 15 percent increase.

Net income rose to $35 million in the third quarter, an $11 million increase from the prior year period. Diluted net income per share was $0.58, compared to $0.40 a year earlier. Non-GAAP adjusted EBITDA increased by $21 million to $53 million. Gross margin remained consistent with the prior year at 38 percent of net sales for the quarter, with minimal tariffs in the current period offsetting higher domestic logistics costs and the dilutive impact of Copra.

Martin Roper, the company's Chief Executive Officer, attributed the strong performance to robust branded retail growth across major markets and healthy category demand. He noted that excluding Copra, the underlying 18 percent organic growth exceeded expectations. Michael Kirban, Co-Founder and Executive Chairman, highlighted continued growth in Europe and increased household penetration in America. Kirban expressed confidence in maintaining growth into 2027 through supply chain investments and brand performance.

The company’s balance sheet remained debt-free as of September 30, 2026, with cash and cash equivalents totaling $152 million. Cash decreased by $45 million from the start of the year, primarily due to the $139 million used for the Copra acquisition. Inventory levels were flat at $111 million, while accounts receivable rose to $129 million from $82 million at the end of the prior year due to strong sales and the inclusion of Copra.

For the full year, Vita Coco expects gross margin to be approximately 40 percent, benefiting from lower tariffs and pricing actions, though partially offset by higher transportation costs and adverse product mix from Copra's private label business. Fourth quarter gross margin is projected to be approximately 33 percent due to increased cost of goods without offsetting price actions until early 2027. The company also expects selling, general and administrative expenses to leverage by approximately 1.5 percentage points of net sales compared to 2025, an improvement from its previous guidance of one percentage point.