COCO Filings — The Vita Coco Company, Inc. - FilingSpy
COCO
The Vita Coco Company, Inc.
A maker of Vita Coco coconut water, the top-selling brand in the U.S., plus PWR LIFT protein drinks and private-label coconut water sold under other retailers' names across dozens of countries. The company was born in 2003 when two New York friends met Brazilian women in a bar who missed their "agua de coco," sparking a coconut water business that began with one of the founders roller-skating around New York to sell cases. It is a certified B Corporation.
Gross margin hit 48.7% as $15.6M in tariff refunds reshaped the quarter, while Vita Coco Coconut Water volume grew 20.9%.
A one-time tariff refund lifted to a level not seen in the periods shown. rose 28.1% to $216.2 million and more than doubled to $71.6 million, but $15.6 million of that came from tariff refunds that will not repeat. The company closed the quarter with $201.9 million in cash and then spent $175 million to acquire Copra Inc., shifting the business toward an asset-light model with new manufacturing and cold-chain risks.
Key takeaways
expanded to 48.7% from 36.3% a year ago, driven primarily by $15.6 million in tariff refunds recognized as a reduction of cost of goods sold, along with favorable pricing and lower ocean freight.
Vita Coco Coconut Water volume rose 20.9% globally, sustaining the elevated growth rate that began with the national rollout of Vita Coco Treats, though the pace moderated from the 32.0% increase in Q1 2026.
Consolidated rose 28.1% to $216.2 million, with Americas net sales up 21.5% to $172.5 million and International net sales up 63.0% to $43.7 million, driven by strong volume in Germany and the U.K.
Section summaries
Management's Discussion and Analysis
Net sales rose 28% to $216M driven by Vita Coco Coconut Water volume and $15.6M in tariff refunds boosted gross margin to 48.7%.
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Consolidated increased 28.1% to $216.2 million for Q2 2026, led by 20.9% growth in Vita Coco Coconut Water and 82.8% growth in Private Label.
expanded 1,240 to 48.7%, primarily due to $15.6 million in tariff refunds recognized as a reduction of cost of goods sold, along with favorable pricing and lower ocean freight.
SG&A expenses rose 16.7% to $42.2 million, a slower rate than the 32.8% increase in Q1 2026, as higher people-related costs and marketing investments were partially offset by lapping the prior year's Treats launch spend.
for the first half of 2026 was $96.5 million, up $84.5 million , driven by higher and a $42.7 million improvement.
The company completed the acquisition of Copra Inc. for $175 million in initial consideration on July 22, 2026, funded with cash on hand, adding a Thailand manufacturing facility and a premium cold-chain coconut water business.
What changed
The tariff exemption flagged in the FY 2025 10-K as a temporary reprieve resulted in $15.6 million of refunds this quarter, recognized as a reduction of cost of goods sold, which drove to 48.7% — a level that will not repeat absent further refunds.
Vita Coco Coconut Water volume growth of 20.9% in Q2 2026 decelerated from the 32.0% rate in Q1 2026, which had been boosted by a retailer promotion shift; the Q2 rate is closer to the 20.9% growth reported in Q2 2025, suggesting the Treats-driven acceleration is annualizing.
SG&A growth of 16.7% in Q2 2026 moderated from the 32.8% increase in Q1 2026, as the comparison against the prior year's $3.1 million Treats launch investment became less demanding.
swung to a $96.5 million inflow for the first half of 2026 from $12.0 million a year ago, reversing the cash-use pattern that had persisted since 2024 as turned favorable.
The July 2026 acquisition of Copra Inc. for $175 million introduces a structural shift away from the company's asset-light model, adding fixed manufacturing costs, cold-chain requirements, and private-label customer concentration — risks that were not present in the prior quarter.
What to watch
Whether returns to the 36-40% range in Q3 2026 now that the $15.6 million tariff refund has passed, and whether underlying margin pressure from tariffs and finished-goods costs re-emerges.
Whether Vita Coco Coconut Water volume growth stabilizes near 20% or decelerates further as the Treats launch annualizes and comparisons against 2025's record growth become more demanding.
The pace and cost of integrating Copra Inc., including the impact of its Thailand manufacturing facility on , fixed costs, and , and whether the private-label business alters the company's margin profile.
Whether the Iran conflict and Strait of Hormuz disruptions raise fuel and logistics costs enough to offset the benefit of lower ocean freight rates that aided this quarter.
Americas grew 21.5% to $172.5 million, while International segment net sales surged 63.0% to $43.7 million, driven by strong volume in Europe, particularly Germany and the U.K.
SG&A expenses rose 16.7% to $42.2 million, reflecting $4.1 million in higher people-related costs and a $2.0 million increase in marketing investments to support growth.
Cash provided by operating activities was $96.5 million for the first half of 2026, up $84.5 million , driven by higher and a $42.7 million improvement.
The company completed the acquisition of Copra Inc. for $175 million in initial consideration on July 22, 2026, funded with cash on hand, and believes current liquidity is sufficient for at least the next 12 months.
Quantitative and Qualitative Disclosures About Market Risk
The company faces interest rate, foreign currency, tariff/inflation, and customer credit risks, with no credit facility drawn and active FX hedging.
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No balance was outstanding on the variable-rate as of June 30, 2026, limiting near-term interest rate exposure.
Foreign currency risk is managed with forward contracts totaling $99.1 million notional at quarter-end, using a 24-month rolling layered hedge program.
A hypothetical 10% move in the U.S. dollar would cause an estimated $6.7 million gain or loss, while a 1% move impacts cash by $0.2 million.
Tariff and inflation risks persist from international sourcing, though relief on coconut water imports from Brazil has reduced the burden on most of the portfolio.
Customer credit concentration is high, with two customers representing approximately 44% of consolidated , but no credit issues have been experienced.
From time to time, we may be involved in various claims and legal proceedings related to claims arising out of our operations. We are not currently a party to any material legal proceedings, including any such proceedings that are pending or threatened, of which we are aware.
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From time to time, we may be involved in various claims and legal proceedings related to claims arising out of our operations. We are not currently a party to any material legal proceedings, including any such proceedings that are pending or threatened, of which we are aware.
Acquisition of Copra adds manufacturing and cold-chain risks; Middle East conflict threatens supply chain and costs.
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The July 2026 acquisition of Copra, a premium cold-chain coconut water business, introduces integration risks across multiple countries and functions.
Owning Copra's Thailand manufacturing facility shifts the company away from its asset-light model, adding fixed costs, capital expenditure needs, and operational risks like equipment failure or natural disasters.
Copra's cold-chain requirements create new product-quality risks, including spoilage and food safety incidents if refrigeration fails.
Copra's private-label business exposes the company to customer concentration, potential contract losses, and , differing from its branded model.
The ongoing Iran conflict and Strait of Hormuz disruptions are increasing fuel and energy costs, creating inflationary pressure, and threatening supplier production and global logistics.