Vita Coco Co. (NAS:COCO) stock slumped 17% in Thursday trading after the coconut water maker swung to a fourth-quarter loss. Net loss totaled $3.4 million, or 6 cents per share, after net income of $17.1 million, or 29 cents per share, last year. "The decrease was primarily driven by a non-cash gain due to the revaluation of the contingent liability of $16 million related to our Runa brand which occurred in the fourth quarter of 2020," the company said in the earnings release. The per-share result was in line with the FactSet consensus. Sales of $86.6 million were up from $69.5 million last year. The FactSet consensus was for sales of $78.3 million. "Due to ocean freight service and cost challenges to the East Coast, our inventory is out of balance geographically," said Chief Executive Martin Roper in a statement. The company plans to further raise prices and reduce promotions in 2022, but even then, Roper says the actions "do not fully cover the inflationary transportation cost effects." Vita Coco stock began trading in Oct. 2021. Shares are down nearly 16% over the last three months while the S&P 500 index (S&P:SPX) is down 10.4%.
March 10, 2022, 1:24 p.m. EST