Vita Coco Company (85E) AI Stock Analysis

Company Guidance

The company said it is too early to provide financial guidance for 2027, but expects supply to support a continuation of current volume growth trends into next year and beyond, with capacity utilization remaining high early in 2027, the first 6 months running at 95% utilization, capacity additions coming on mid next year, constraints falling away a little by Q4 of next year, and a preferred 85% utilization model in 2028; for 2026, it expects net sales between $810 million and $820 million, gross margins for the full year of approximately 40%, and adjusted EBITDA of $170 million to $175 million, based on the U.S. category growing in the mid-20s, international business maintaining very healthy growth rates, consolidated Vita Coco coconut water net sales growth of approximately low 20%, U.S. Vita Coco net sales growing in the high teens, and U.S. private label net sales growth of 110%-120%; Q4 gross margins are expected to be approximately 33%, SG&A leverage approximately 1.5 points as a percentage of sales, and long term gross margin aspirations remain unchanged in the high 30s, approaching 40%, with pricing increases taking effect in Q1 of 2027.