Shares of The Vita Coco Company (NASDAQ: COCO) jumped on Wednesday after the beverage company reported financial results for the fourth quarter of 2023 that beat expectations. Vita Coco stock finished the day up an encouraging 15%.

Vita Coco enjoyed a 15% year-over-year increase for its net sales in both Q4 and for the entire year. The company enjoyed both higher sales volume and an increase to its prices.

Vita Coco experienced a massive improvement in profitability. Thanks to lower shipping expenses, the company's gross margin jumped to nearly 37% in 2023 compared with a gross margin of just 24% in 2022. And this improvement in gross margin was a big reason it was able to earn full-year net income of $47 million compared to just $8 million in the prior year.

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Source Fool.com