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THE VITA COCO COMPANY® The Vita Coco Company Reports Third Quarter 2021 Financial Results 11/11/2021 Record Third Quarter Net Sales Increased 32.5 % to $ 115.7 Million Income from Operations Increased 72.7 % to $ 17.8 Million NEW YORK , Nov. 11 , 2021 ( GLOBE NEWSWIRE ) -- The Vita Coco Company , Inc. ( NASDAQ : COCO ) , a leading high - growth platform of better - for - you beverage brands , today announced financial results for the third quarter and first nine months ended September 30 , 2021 . Third Quarter 2021 Highlights Compared to Prior Year Period • Net sales grew to $ 115.7 million , a 32.5 % increase • Gross profit increased to $ 38.5 million , or 33.3 % of net sales • Income from Operations was up 72.7 % to $ 17.8 million • GAAP Net income was $ 13.0 million , or $ 0.24 per diluted share • Non - GAAP Adjusted EBITDA¹ increased 83.0 % to $ 20.6 million First Nine Months 2021 Highlights Compared to Prior Year Period • Net sales grew to $ 292.9 million , a 21.5 % increase • Gross profit increased to $ 91.6 million , or 31.3 % of net sales • Income from Operations was up 10.5 % to $ 29.7 million • GAAP Net income was $ 22.4 million , or $ 0.42 per diluted share • Non - GAAP Adjusted EBITDA¹ increased 21.6 % to $ 36.3 million Subsequent Events • Initial public offering ( " IPO " ) completed in October 2021 , with 11.5 million shares sold at $ 15.00 per share Michael Kirban , the Company's co - Chief Executive Officer and Chairman , stated , " I'm extremely proud of our teams ' ability , once again , to deliver incredible results , especially in a challenging environment . I'm most excited about our accelerating leadership position in the high growth Coconut Water category and in our ability to bring new products and brands to consumers who are looking for healthy alternatives to conventional beverages . I want to recognize the effort of all our employees on accomplishing this and achieving a record quarter in net sales . Our top line growth continued to accelerate in the third quarter as compared to the first and second quarters of 2021 despite inventory challenges , with net sales growing 32 % compared to the prior year period largely driven by our Americas segment . Looking forward , we plan to continue to prioritize growth by driving the Coconut Water category and meeting the expanding consumer demand for better - for - you natural and plant - based beverages . We believe we are well positioned to leverage our strong foundation and asset lite business model to propel future profitable growth and to meet this growing consumer demand . " Martin Roper , the Company's co - Chief Executive Officer , commented , " Our top line growth in the Americas was driven by the strength of our Vita Coco Coconut Water product category , combined with increased net sales from Private Label due to better inventory availability and associated timing of revenue recognition . We also benefited from increased net sales per case equivalents , due to reduced promotional pricing activity within our Vita Coco Coconut Water product category . Our net sales growth was accomplished even with continued inventory constraints on some SKUs related to availability of ocean containers at acceptable prices and increased transit times . " Roper continued , “ Our costs of goods for the quarter continued to be impacted by ocean freight transportation cost increases , which were sequentially worse than in the second quarter . While difficult to predict when the global supply chain will normalize , we believe our costs of goods are likely to remain under pressure for the next several quarters due to inflated freight and transportation costs . In the third quarter , we were able to offset most of these inflationary costs with increased volume and improved price / mix to generate our gross profit and income from operations growth . Our recent IPO solidified our balance sheet and has us well positioned to chase further share gains during these supply chain challenges which we believe will eventually normalize . In anticipation of continued growth , we intend to build our inventories over the winter to support our projected peak summer demand , assuming current year - to - date growth rates are sustained . Our discussions with retailers on increased distribution , new brand innovations and expansion of our Vita Coco coconut milk offering are progressing . Overall , we believe our business is healthy and our commercial platform is in a good position to support our multiple growth initiatives for long - term growth both in our Americas and International segments . " Third Quarter 2021 Results Net sales increased $ 28.3 million , or 32.5 % , to $ 115.7 million for the third quarter ended September 30 , 2021 , compared to $ 87.3 million for the third quarter ended September 30 , 2020. The increase in net sales was primarily driven by higher case equivalent volumes across both the Americas and International segments , with the Vita Coco Coconut Water product category as the largest contributor to the increase . Gross profit was $ 38.5 million for the third quarter of 2021 compared to $ 29.4 million for the third quarter of 2020. Gross profit margin decreased 36 basis points to 33.3 % for the third quarter of 2021 compared to 33.6 % in the same period last year . The gross margin erosion in the third quarter of