What investors need to know about COCO stocks
The documents relating to the IPO of Vita Coco are now public. The coconut water giant has decided to debut on the Nasdaq stock exchange. Let’s break down the file …
About the company Vita Coco
Michael Kirban and Ira Liran founded The Vita Coco Company in New York in 2004. The company is one of the world’s leading manufacturers of coconut-based beverages and other ready-to-drink beverages.
The Vita Coco company started with an ambitious mission. She wanted to reinvent what is possible when brands deliver tasty, natural and nutritious products that are better for consumers and the world. Today, it is a known name and a leader in its market.
The company’s portfolio is led by Vita Coco. It is the first brand of coconut water in the world. Vita Coco has built on its success to become a multi-brand platform. Its portfolio also includes …
- Runa – herbal energy drinks
- PWR LIFT – protein flavored water
- Ever & Ever – sustainably packaged water
- Choc-o-lot – vegan and dairy-free chocolate drinks
Vita Coco products are available in 24 countries. The pioneer is the growth engine of the coconut water industry. While increasing its market share.
Vita Coco grows to be the leading brand of coconut water
According to The Insight Partners, the coconut water market was over $ 1.1 billion in 2019. By 2027, the market is expected to grow by 14%. That could make it into a $ 3.2 billion market. Consumers are looking for nutritious and delicious drinks to maintain a better lifestyle. Due to its health benefits, coconut water is becoming a popular alternative to sugary soda. This is one of the reasons why investors should keep an eye out for the Vita Coco IPO.
The company pioneered packaged coconut water. Since then, Vita Coco has grown into the # 1 coconut water brand. It has a 46% market share. Additionally, with a 36% market share advantage over the closest major competitor, the company has a significant market share advantage.
Despite its success, the company’s journey has not always been smooth. According to Vita Coco CEO Mike Kirban, the company has had to overcome intense competition. In 2009, beverage industry giants entered the coconut water market. But they did it through acquisitions. Nonetheless, these entrants threatened the existence of Vita Coco in what Kirban dubbed the Coconut Wars …
In 2009, Coca-Cola and PepsiCo entered our category through acquisitions. Some feared that the strength of their distribution networks would lead to our demise. In fact, the opposite has happened. We have done what we have always done best: we have outperformed, innovated and maneuvered the competition.
We fought with everything we had. And we won what has been dubbed “The Coconut Water Wars! More importantly, we won because consumers loved our brand and stayed loyal to it.
Vita Coco’s position in the market is reflected in its finances. The company’s recent filing shows growth in sales and profitability. Unlike many companies that have gone public recently, they are actually making a profit. As a result, this could make Vita Coco’s IPO a good candidate for investors.
Vita Coco: Financial information
Detailed financial information can be found in Vita Coco’s IPO prospectus. This can give investors a better understanding of the finances of the business. If you’re in the market for COCO stocks, let’s take a look at the details.
Vita Coco highlights some key information for investors. The company’s income statement and balance sheet data are summarized as follows …
Net sales: The company’s net sales increased. Vita Coco reported net sales of $ 284 million for fiscal 2019. For 2020, Vita Coco reported more than $ 310.6 million in net sales.
Gross profit: Vita Coco’s gross profit increased. The company reported gross profit of $ 93 million for fiscal 2019. In 2020, Vita Coco reported nearly $ 104.9 million in gross margin.
Net revenue: Vita Coco’s net income increased. For the fiscal year ended December 2019, the company reported net income of $ 9.4 million. In December 2020, the company’s net profit reached $ 32.7 million.
Species: Vita Coco’s cash flow has recently experienced a decline. As an example, the company recorded $ 36.7 million in cash for fiscal year 2019. Company cash flow increased to $ 72.2 million for year 2020. However, for the half year ended. ending in June 2021, Vita Coco declared $ 19.5 million in cash.
Total assets and liabilities: Vita Coco reported increases in total assets and total liabilities. As of December 2019, the company reported total assets of $ 146.1 million and total liabilities of $ 72.3 million. As of December 2020, Vita Coco had total assets of over $ 183.9 million. And he has $ 81.6 million in total liabilities.
The company has the interests of the distribution giants. Keurig Dr Pepper has agreed to purchase $ 20 million of COCO shares from an existing shareholder as part of the offer.
Keurig Dr Pepper to buy $ 20 million in COCO shares
Vita Coco is heavily dependent on Keurig Dr Pepper (Nasdaq: KDP). The soda, tea, water and coffee giant is Vita Coco’s largest distributor customer. According to the SEC filing, Keurig Dr Pepper accounted for 19% of Vita Coco’s total net sales in 2020.
Keurig Dr Pepper is a name known for its coffee platform. This in addition to its namesake drink, Dr Pepper. The company has an extensive portfolio of over 125 brands. This includes 7UP, A&W, and Canada Dry. However, more recently the company has sought to expand its portfolio. So naturally, the acquisition of companies was a priority. The company recently acquired a majority stake in non-owned Bai Brands for $ 1.7 billion. The company also acquired Core Nutrition for $ 525 million.
As part of its growth strategy, Keurig Dr Pepper has agreed to buy $ 20 million in shares from an existing shareholder, Verlinvest Beverages, in a private placement. Verlinvest Beverages will own 38% of COCO shares after Vita Coco’s IPO, according to the prospectus.
An investment by the entity could give investors confidence in the IPO of Vita Coco. So let’s see the details of the deposit …
Vita Coco valued at over a billion dollars
Vita Coco filed on September 27 and set its terms on October 12. The company plans to list on the Nasdaq under the ticker COCO.
The company is offering 11.5 million common shares. The shares will cost between $ 18 and $ 21 per share. A price in the middle of the range would value Vita Coco at $ 1.08 billion.
At the bottom of its range, the IPO of Vita Coco could raise $ 207 million. At the high end, the company could raise up to $ 241.5 million in its offering.
Goldman Sachs, Bank of America and Credit Suisse are the main subscribers of the offer. The underwriters will have the option to purchase an additional 1.7 million shares from the selling shareholders at the IPO price.
Vita Coco’s IPO comes in a booming IPO market. Oatly’s recent successful debut may be a good sign for COCO stocks going forward.
As always, be sure to do your research before investing. IPOs can be volatile for the first few months. And stock prices are constantly changing. Also, if you are interested in investing in IPOs, check out our recent top IPOs and our IPO calendar. We update the calendar daily to give you the latest news on upcoming and filed IPOs.
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About Aimée Bohn
Aimee Bohn is a graduate of the College of Business and Economics at Towson University. Her experience in marketing research helps her uncover interesting trends. Researching IPOs and other trends has been his main focus over the past year. When Aimee isn’t writing for Investment U, you can usually find her doing graphics or traveling with friends.