Vita Coco hasn’t been capable of absolutely provide grocery retailer fridges with its coconut water for months, however co-founder and co-CEO Mike Kirban stated that hasn’t stopped the beverage firm from achieve new prospects.
“We’ve not been absolutely in inventory for 18-24 months, however on the similar time we have grown our enterprise considerably,” Kirban stated in an interview. “Not solely can we maintain tempo, however we are able to speed up progress even with empty cabinets.”
Throughout the six-month interval ended June 30, the corporate’s web gross sales elevated 15.2% to $ 177.3 million.
Like many companies, Vita Coco has confronted provide chain points attributable to the pandemic, similar to greater prices for delivery containers and delays at ports. However Kirban stated the corporate is exclusive due to the long-term contracts it has with coconut producers who’ve agreed to promote coconut water, a byproduct of their coconut water processes. manufacturing, at Vita Coco. In consequence, it hasn’t paid extra for the important thing ingredient, at the same time as beverage giants like Coca-Cola and PepsiCo increase costs to maintain up with rising commodity prices.
Vita Coco’s sturdy provide chain helped the corporate beat Coke and Pepsi when the 2 firms tried to enter the coconut water market over a decade in the past, based on Kirban.
The beverage firm made its public market debut Thursday, listed on the Nasdaq below the image “COCO.” Its preliminary public providing was priced at $ 15 per share, beneath its goal vary of $ 18 to $ 21 per share. The IPO raised $ 173 million for the corporate, giving it an implied valuation of over $ 830 million. Vita Coco’s share opened at $ 15.37 per share however fell practically 4% in afternoon buying and selling, buying and selling at $ 14.42 per share.
Based in 2004, Vita Coco began out as a model of coconut water, however has expanded into different beverage classes, similar to vitality drinks and water. But coconut water accounted for 84% of its gross sales final 12 months. The corporate is positioned as a start-up with a more healthy portfolio than Coke and Pepsi. In 2020, Vita Coco’s web gross sales elevated 9.4% to $ 310.6 million. The corporate reported web earnings of $ 32.7 million, up from web earnings of $ 9.4 million a 12 months earlier.
Kirban stated the corporate’s primary objective is to extend gross sales of coconut water, however Vita Coco can also be increasing its smaller manufacturers, like Ever & Ever water, and is contemplating acquisitions that will make sense for the portfolio. of the corporate.
Different agribusiness firms that went public this 12 months have seen their shares battle after profitable market debuts. For instance, shares of Oatly, which makes oat-based dairy alternate options, have fallen 29% since its IPO in Might.