Q2 Earnings Roundup: Vita Coco (NASDAQ:COCO) And The Rest Of The Beverages and Alcohol Segment
As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the beverages and alcohol industry, including Vita Coco (NASDAQ:COCO) and its peers.
These companies' performance is influenced by brand strength, marketing strategies, and shifts in consumer preferences. Changing consumption patterns are particularly relevant and can be seen in the explosion of alcoholic craft beer drinks or the steady decline of non-alcoholic sugary sodas. Companies that spend on innovation to meet consumers where they are with regards to trends can reap huge demand benefits while those who ignore trends can see stagnant volumes. Finally, with the advent of the social media, the cost of starting a brand from scratch is much lower, meaning that new entrants can chip away at the market shares of established players.
The 12 beverages and alcohol stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 13.1% below.
Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data. However, beverages and alcohol stocks have held steady amidst all this with share prices up 4.9% on average since the latest earnings results.
Vita Coco (NASDAQ:COCO)
Founded in 2004 followed by a 2021 IPO, The Vita Coco Company (NASDAQ:COCO) offers coconut water products that are a natural way to quench thirst.
Vita Coco reported revenues of $144.1 million, up 3.2% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with an impressive beat of analysts’ operating margin estimates.
Martin Roper, the Company’s Chief Executive Officer, said, “We are pleased with this quarter’s results of 3% net sales growth and with our scan data growth, despite inventory challenges due to delays in product shipments caused by temporary headwinds in ocean freight availability and transit times.”
Vita Coco delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 5.2% since reporting and currently trades at $26.05.
We think Vita Coco is a good business, but is it a buy today? Read our full report here, it’s free.
Best Q2: Celsius (NASDAQ:CELH)
With its proprietary MetaPlus formula as the basis for key products, Celsius (NASDAQ:CELH) offers energy drinks that feature natural ingredients to help in fitness and weight management.
Celsius reported revenues of $402 million, up 23.4% year on year, outperforming analysts’ expectations by 2.4%. It was a very strong quarter for the company with a solid beat of analysts’ EPS estimates.
Celsius achieved the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 11.4% since reporting. It currently trades at $36.65.
Is now the time to buy Celsius? Access our full analysis of the earnings results here, it’s free.
Slowest Q2: Boston Beer (NYSE:SAM)
Known for its flavorful beverages challenging the status quo, Boston Beer (NYSE:SAM) is a pioneer in craft brewing and a symbol of American innovation in the alcoholic beverage industry.
Boston Beer reported revenues of $579.1 million, down 4% year on year, falling short of analysts’ expectations by 3.1%. It was a weak quarter for the company with a miss of analysts’ earnings estimates.
Interestingly, the stock is up 3.4% since the results and currently trades at $280.
Read our full analysis of Boston Beer’s results here.
Coca-Cola (NYSE:KO)
A pioneer and behemoth in carbonated soft drinks, The Coca-Cola Company (NYSE:KO) is a storied beverage company best known for its flagship soda of the same name.
Coca-Cola reported revenues of $12.31 billion, up 2.9% year on year, surpassing analysts’ expectations by 4.8%. Taking a step back, it was a very strong quarter for the company with an impressive beat of analysts’ organic revenue growth estimates.
Coca-Cola achieved the biggest analyst estimates beat among its peers. The stock is up 12.6% since reporting and currently trades at $72.97.
Read our full, actionable report on Coca-Cola here, it’s free.
Molson Coors (NYSE:TAP)
Sporting an impressive roster of iconic beer brands, Molson Coors (NYSE:TAP) is a global brewing giant with a rich history dating back more than two centuries.
Molson Coors reported revenues of $3.25 billion, flat year on year, surpassing analysts’ expectations by 2.2%. Zooming out, it was a strong quarter for the company with a decent beat of analysts’ earnings estimates.
The stock is up 11% since reporting and currently trades at $56.79.
Read our full, actionable report on Molson Coors here, it’s free.
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