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NEW YORK - The Vita Coco Company, Inc. (NASDAQ: COCO), a prominent player in the better-for-you beverage industry with a market capitalization of $2 billion, has publicly responded to a critical report from NINGI Research that took a short position in the company’s stock. According to InvestingPro data, the company maintains excellent financial health with a GREAT overall score, supported by strong liquidity metrics and zero debt on its balance sheet. Vita Coco has refuted the report’s allegations, labeling them as replete with inaccuracies and misrepresentations. The company maintains that it has consistently provided transparent and accurate information to the public, specifically referencing statements made during the Fourth Quarter and Fiscal-Year 2024 Earnings Call on February 26, 2025.
During the earnings call, Vita Coco acknowledged inventory constraints and subpar service levels with its private label retailers in the previous year, anticipating the potential loss of some regional retailer contracts in 2025. Despite these challenges, the company’s financial metrics remain robust, with a healthy gross profit margin of 38.5% and revenue growth of 4.5% in the last twelve months. The company emphasized that these projections have been factored into their current forecast for the year’s net sales and confirmed that there have been no material changes since that announcement. For deeper insights into Vita Coco’s financial health and growth prospects, InvestingPro offers comprehensive analysis and 10 additional key investment tips.
Reiterating confidence in its business practices, Vita Coco stands by the financial reporting and governance that were detailed in its recent earnings release. The company, co-founded by Michael Kirban and Ira Liran in 2004, operates as a public benefit corporation and Certified B Corporation. It is recognized for its leading coconut water brand in the U.S., as well as other products such as Ever & Ever sustainably packaged water and PWR LIFT protein-infused water.
The press release also included standard cautionary language regarding forward-looking statements, reminding readers of the inherent risks and uncertainties that could affect the company’s future performance and financial results. These forward-looking statements are based on current expectations and are subject to change.
This news article is based on a press release statement from The Vita Coco Company.
In other recent news, The Vita Coco Company reported better-than-expected fourth-quarter results, with adjusted earnings per share of $0.11, surpassing the analyst estimate of $0.07. Revenue for the quarter reached $127 million, exceeding the consensus estimate of $120.41 million and marking a 20% year-over-year increase. However, the company’s full-year 2025 revenue guidance, projected between $555 million and $570 million, fell short of analyst expectations, which were at a midpoint of $569.4 million. Jefferies adjusted its price target for Vita Coco to $42, down from $43, but maintained a Buy rating, citing the company’s robust sales and EBITDA figures despite supply chain challenges.
Ningi Research announced it is shorting Vita Coco’s stock, expressing concerns over sluggish sales growth and a significant contract termination with Costco. The research firm highlighted a $90 million revenue shortfall expected by the end of 2025 due to Costco ending its contract, citing past delivery issues. Additionally, Ningi Research criticized Vita Coco for alleged misleading claims about market share and growth, as well as internal challenges like undisclosed related-party transactions. The firm also pointed out the unsuccessful diversification efforts and the impact of inventory shortages on retail partnerships. Despite these challenges, Jefferies remains optimistic about Vita Coco’s future, noting a positive outlook with improved inventory levels and a decline in freight rates.
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