Vita Coco: Growth Outlook Remains Healthy

I reiterate my buy rating on The Vita Coco Company as recurring demand, distribution gains, and the Copra acquisition drive growth. Q2 net sales grew 28.1% year-over-year, with volume up 24.3% and gross margin expanding to 48.7%, aided by tariff refunds. Household penetration and repeat purchases underpin sustainable growth, while Private Label and Copra provide additional revenue and margin expansion opportunities. With revenue scaling above 20% and margin upside, COCO is positioned to achieve FY2029 adj. EPS targets, supporting further upside.