Vita Coco Raises Full-Year Sales Outlook

Vita Coco, the popular coconut water maker, saw a surge in its share price following its upward revision of full-year sales projections. The company now aims for a sales growth rate of 13% to 15%, up from the previous range of 10% to 12%.

Strong Performance Drives Investor Confidence

Investors responded positively to Vita Coco's third-quarter results, which exceeded expectations. The company reported a profit of 26 cents per share, doubling the figure from the previous year. Meanwhile, sales increased by 11% to $138.1 million, just below analysts' estimated $139 million.

Key Factors Behind the Revised Outlook

Vita Coco attributed its improved outlook to the robust growth of its core product line, Vita Coco-brand coconut water, as well as the expanding distribution of its private-label offerings. Notably, the company also anticipates retaining a significant portion of business from a major customer's private-label division, a development that was initially expected to result in some loss.

As a result of these positive developments, Vita Coco's stock has risen by over 13%, currently trading at $26.46. Overall, the company has experienced a remarkable 90% increase in its shares since the beginning of this year.