Vita Coco (NASDAQ:COCO) reported a sharp increase in second-quarter 2026 sales and profit, raised its full-year outlook and announced the acquisition of Copra Inc., a coconut water company focused on the super-premium Thai Nam Hom segment.
Executive Chairman Mike Kirban said the company’s first-quarter growth trends continued into the second quarter, supported by inventory availability and operational execution. He said coconut water remains one of the fastest-growing beverage categories, citing year-to-date retail dollar growth of 29% in the U.S. and 65% in measured European markets.
Second-quarter sales rise 28%
In the Americas segment, net sales rose 21% to $172 million. Vita Coco Coconut Water sales in the region increased 15% to $138 million, reflecting a 7% volume increase and a 7% net price and mix benefit. Private-label sales in the Americas rose 83% to $27 million, driven primarily by volume growth.
International net sales increased 63%, with Baker citing “continued exceptional” growth across branded and private-label coconut water. Vita Coco Coconut Water net sales in the international segment rose 60%, while private-label sales increased 82%.
Gross profit was $105 million, up $44 million from the prior-year period. Gross margin was 49%, compared with 36% in the second quarter of 2025. Baker said tariff refunds improved gross margin by about 700 basis points, with the remaining improvement coming from better coconut water pricing, lower ocean freight and lower finished goods costs, partly offset by higher domestic logistics costs.
Net income attributable to shareholders was $49 million, or $0.82 per diluted share, compared with $23 million, or $0.38 per diluted share, a year earlier. Adjusted EBITDA rose to $67 million, or 31% of net sales, from $29 million, or 17% of net sales, in the prior-year quarter.
Company raises full-year outlook
Vita Coco raised its 2026 guidance, incorporating both stronger expectations for its core business and the addition of Copra. The company now expects:
- Net sales of $790 million to $805 million;
- Full-year gross margin of approximately 40%;
- Adjusted EBITDA of $154 million to $161 million.
Baker said the sales outlook assumes the U.S. coconut water category grows approximately 20%, while international markets, led by the U.K. and Germany, maintain healthy growth rates. The company expects consolidated Vita Coco Coconut Water net sales growth in the high teens to 20% range, with U.S. Vita Coco net sales rising in the mid- to high teens.
The company also now expects U.S. private-label net sales growth of 90% to 100% for the full year, citing stronger category growth, increased distribution, better visibility into private-label trends and the inclusion of Copra.
Copra acquisition expands super-premium coconut water presence
Kirban described Copra as “one of the greatest success stories in coconut water” outside of Vita Coco. Copra competes in the super-premium Thai Nam Hom coconut water segment, which is sold chilled and has what Kirban described as a sweet, aromatic flavor and a slightly pink color. He said Vita Coco estimates the segment represents about 13% of U.S. coconut water sales and is growing slightly faster than the broader category.
Chief Executive Officer Martin Roper said Copra’s business is about 90% Nam Hom coconut water products, with other branded coconut products including young Thai coconut meat, nectar, puree and ready-to-drink coconut smoothies. He said Copra has grown faster than Vita Coco, driven primarily by private-label gains and recent growth for the Copra brand in foodservice and select retailers.
Baker said the purchase price includes an initial $175 million payment, subject to customary closing adjustments, made with approximately 80% cash and 20% stock. Additional consideration is due in 2029 based on 2028 gross profit, with a floor of $45 million and a cap of $100 million. Copra projects full-year 2026 net sales above $100 million.
The company expects Copra to be accretive to adjusted EBITDA margins after full integration. Baker said Vita Coco plans to retain key employees and maintain operations in Thailand, with limited SG&A cost synergies expected because the focus is on growth. The company plans to invest about $11 million in capital expenditures to double extraction output and improve efficiency at Copra’s Thailand facility.
Cost pressures and capacity remain areas of focus
Roper said the company has benefited in 2026 from tariff refunds and lower ocean freight costs compared with full-year 2025 levels, but those benefits are being partially offset by higher domestic logistics costs, packaging materials, finished goods costs and energy costs affecting suppliers.
He said ocean freight surcharges tied to seasonal demand and fuel costs are expected to flow through the profit and loss statement in the third and fourth quarters. If cost increases continue, Roper said the company may consider price increases early in 2027, though management is waiting to determine which inflationary pressures are permanent.
Roper also addressed the earthquake near General Santos in the Philippines, where one of the company’s production facilities sustained damage. He said the incident caused the loss of several weeks of production and a couple of weeks of inventory at the factory, equal to roughly 1% of the company’s full network annual production.
On capacity, Roper said Vita Coco is currently running closer to 95% capacity, which limits its ability to exceed current production plans. The company has increased its targets for 2028 capacity needs and is working with multiple partners to secure longer-term capacity. Roper said adding a Tetra line typically takes nine to 12 months, while adding partnerships can take 18 to 24 months.
Roper closed the call by saying the company remains confident in the long-term potential of the coconut water category and Vita Coco’s position in it, adding that the Copra acquisition is expected to help the company expand its role in the category over time.
About Vita Coco (NASDAQ:COCO)
Vita Coco, Inc (NASDAQ: COCO) is a global beverage company specializing in coconut-based products. Founded in 2004 by Michael Kirban and Ira Liran, the company pioneered the introduction of refrigerated coconut water to U.S. consumers. Headquartered in New York City, Vita Coco sources coconuts from growers in tropical regions such as the Philippines, Indonesia and Brazil, partnering with local farmers to promote sustainable agriculture and community development.
The company’s flagship offering, Vita Coco Original Coconut Water, is available in multiple pack sizes and a variety of flavors.
