Vital Farms Reports Fourth Quarter and Fiscal Year 2024 Financial Results and Announces Fiscal Year 2025 Guidance
Vital Farms (VITL) reported strong financial results for FY2024, with net revenue increasing 28.5% to $606.3 million. The company's Q4 2024 net revenue grew 22.2% to $166.0 million, with net income rising 46.8% to $10.6 million.
Key fiscal year 2024 highlights include: gross margin expansion of 352 basis points to 37.9%, net income growth of 108.8% to $53.4 million, and Adjusted EBITDA of $86.7 million. The company added approximately 125 new family farms, bringing the total network to over 425 farms.
For FY2025, Vital Farms projects net revenue of at least $740 million (22% growth) and Adjusted EBITDA of at least $100 million (15% growth). Capital expenditure is expected between $50-60 million. The company remains on track to reach its $1 billion net revenue target by 2027.
Vital Farms (VITL) ha riportato risultati finanziari solidi per l'anno fiscale 2024, con un aumento del fatturato netto del 28,5% a 606,3 milioni di dollari. Il fatturato netto del quarto trimestre 2024 è cresciuto del 22,2% a 166,0 milioni di dollari, con un utile netto in aumento del 46,8% a 10,6 milioni di dollari.
I punti salienti dell'anno fiscale 2024 includono: un'espansione del margine lordo di 352 punti base al 37,9%, una crescita dell'utile netto del 108,8% a 53,4 milioni di dollari e un EBITDA rettificato di 86,7 milioni di dollari. L'azienda ha aggiunto circa 125 nuove aziende agricole familiari, portando il totale a oltre 425 fattorie.
Per l'anno fiscale 2025, Vital Farms prevede un fatturato netto di almeno 740 milioni di dollari (crescita del 22%) e un EBITDA rettificato di almeno 100 milioni di dollari (crescita del 15%). Si prevede che la spesa in conto capitale sia compresa tra 50 e 60 milioni di dollari. L'azienda rimane sulla buona strada per raggiungere il suo obiettivo di fatturato netto di 1 miliardo di dollari entro il 2027.
Vital Farms (VITL) reportó resultados financieros sólidos para el año fiscal 2024, con un aumento del ingreso neto del 28,5% a $606,3 millones. El ingreso neto del cuarto trimestre de 2024 creció un 22,2% a $166,0 millones, con un ingreso neto que aumentó un 46,8% a $10,6 millones.
Los puntos destacados del año fiscal 2024 incluyen: expansión del margen bruto de 352 puntos básicos al 37,9%, crecimiento del ingreso neto del 108,8% a $53,4 millones y EBITDA ajustado de $86,7 millones. La empresa añadió aproximadamente 125 nuevas granjas familiares, llevando el total a más de 425 granjas.
Para el año fiscal 2025, Vital Farms proyecta un ingreso neto de al menos $740 millones (22% de crecimiento) y un EBITDA ajustado de al menos $100 millones (15% de crecimiento). Se espera que el gasto de capital esté entre $50 y $60 millones. La empresa sigue en camino de alcanzar su objetivo de ingreso neto de $1 mil millones para 2027.
Vital Farms (VITL)는 2024 회계연도에 강력한 재무 결과를 보고했으며, 순수익이 28.5% 증가하여 $606.3 백만에 달했습니다. 2024년 4분기 순수익은 22.2% 증가하여 $166.0 백만에 도달했으며, 순이익은 46.8% 증가하여 $10.6 백만에 이르렀습니다.
2024 회계연도의 주요 하이라이트는: 총 마진이 352 베이시스 포인트 증가하여 37.9%에 도달하고, 순이익이 108.8% 증가하여 $53.4 백만에 이르며, 조정된 EBITDA가 $86.7 백만에 달하는 것입니다. 회사는 약 125개의 새로운 가족 농장을 추가하여 총 네트워크를 425개 이상의 농장으로 확장했습니다.
2025 회계연도에 대해 Vital Farms는 최소 $740 백만의 순수익(22% 성장)과 최소 $100 백만의 조정된 EBITDA(15% 성장)를 예상하고 있습니다. 자본 지출은 $50-60 백만 사이로 예상됩니다. 이 회사는 2027년까지 $10억의 순수익 목표를 달성할 계획입니다.
Vital Farms (VITL) a annoncé des résultats financiers solides pour l'exercice 2024, avec un chiffre d'affaires net en hausse de 28,5 % à 606,3 millions de dollars. Le chiffre d'affaires net du quatrième trimestre 2024 a augmenté de 22,2 % pour atteindre 166,0 millions de dollars, avec un bénéfice net en hausse de 46,8 % à 10,6 millions de dollars.
Les points forts de l'exercice 2024 incluent : une expansion de la marge brute de 352 points de base à 37,9 %, une croissance du bénéfice net de 108,8 % à 53,4 millions de dollars et un EBITDA ajusté de 86,7 millions de dollars. L'entreprise a ajouté environ 125 nouvelles fermes familiales, portant le total à plus de 425 fermes.
Pour l'exercice 2025, Vital Farms prévoit un chiffre d'affaires net d'au moins 740 millions de dollars (croissance de 22 %) et un EBITDA ajusté d'au moins 100 millions de dollars (croissance de 15 %). Les dépenses en capital devraient se situer entre 50 et 60 millions de dollars. L'entreprise reste sur la bonne voie pour atteindre son objectif de chiffre d'affaires net de 1 milliard de dollars d'ici 2027.
Vital Farms (VITL) hat für das Geschäftsjahr 2024 starke finanzielle Ergebnisse gemeldet, mit einem Anstieg des Nettoumsatzes um 28,5% auf 606,3 Millionen Dollar. Der Nettoumsatz im vierten Quartal 2024 wuchs um 22,2% auf 166,0 Millionen Dollar, während der Nettogewinn um 46,8% auf 10,6 Millionen Dollar anstieg.
Zu den wichtigsten Highlights des Geschäftsjahres 2024 gehören: eine Ausweitung der Bruttomarge um 352 Basispunkte auf 37,9%, ein Wachstum des Nettogewinns um 108,8% auf 53,4 Millionen Dollar und ein bereinigtes EBITDA von 86,7 Millionen Dollar. Das Unternehmen hat etwa 125 neue Familienfarmen hinzugefügt, wodurch das gesamte Netzwerk auf über 425 Farmen angewachsen ist.
Für das Geschäftsjahr 2025 prognostiziert Vital Farms einen Nettoumsatz von mindestens 740 Millionen Dollar (22% Wachstum) und ein bereinigtes EBITDA von mindestens 100 Millionen Dollar (15% Wachstum). Die Investitionsausgaben werden zwischen 50 und 60 Millionen Dollar erwartet. Das Unternehmen bleibt auf Kurs, sein Ziel von 1 Milliarde Dollar Nettoumsatz bis 2027 zu erreichen.
- Net revenue up 28.5% to $606.3M in FY2024
- Net income grew 108.8% to $53.4M
- Gross margin expanded 352 basis points to 37.9%
- Added 125 new family farms in 2024
- Strong FY2025 guidance: $740M revenue, $100M Adjusted EBITDA
- Healthy cash position of $160.3M with no debt
- Supply constraints expected in early 2025
- Higher capital expenditure planned ($50-60M for FY2025)
- Increased promotional and marketing expenses
- Impact of HPAI on poultry flocks affecting supply
Insights
Vital Farms delivered exceptional financial results for FY2024, with revenue surging 28.5% to
The company's profitability metrics showed remarkable improvement across all levels:
- Gross margin expanded
352 basis points to37.9% , driven by scale benefits, operational efficiencies, and favorable input costs - Net income margin increased to
8.8% from5.4% in the prior year - Adjusted EBITDA grew
79.5% to$86.7 million , representing14.3% of revenue
Looking ahead, management's FY2025 guidance of
The significant increase in planned capital expenditures (
Vital Farms' impressive growth is underpinned by a strategic expansion of their unique supply chain model, with the company adding approximately 125 new family farms in 2024 alone, bringing their total network to over 425 farms. This
The company is currently navigating significant industry-wide supply challenges due to Highly Pathogenic Avian Influenza (HPAI) affecting U.S. poultry flocks. Unlike conventional egg producers who typically operate with concentrated production facilities, Vital Farms' distributed network of smaller family farms provides some inherent risk mitigation against widespread outbreaks. However, the company acknowledges supply constraints will impact early 2025 performance.
To address these challenges and support long-term growth, Vital Farms is making substantial infrastructure investments:
- A new washing and packing line at their Springfield, Missouri facility (operational by Q4 2025)
- A planned new egg washing and packing facility in Seymour, Indiana
- Development of "accelerator farms" to bring new production capacity online faster
- A digital transformation project to improve supply chain visibility and efficiency
These investments, reflected in their
Management's expectation that supply constraints will ease in the second half of 2025 suggests a carefully planned capacity ramp-up, with new farms coming online progressively throughout the year. This phased approach to supply expansion, coupled with their strong cash position (
Fiscal Year 2024 Net Revenue of
FY 2025 Outlook of
On Track to Reach
AUSTIN, Texas, Feb. 27, 2025 (GLOBE NEWSWIRE) -- Vital Farms (Nasdaq: VITL), a Certified B Corporation that offers a range of ethically produced foods nationwide, today reported financial results for its fourth quarter and fiscal year ended December 29, 2024.
Financial highlights for the fourth quarter ended December 29, 2024 (13 weeks), compared to the fourth quarter ended December 31, 2023 (14 weeks), include:
- Net Revenue increased
22.2% to$166.0 million on a reported basis, compared to$135.8 million , and increased30% on a like-for-like basis when accounting for one fewer week in the fourth quarter of 2024 (13 weeks) versus the fourth quarter of 2023 (14 weeks) - Gross Margin expanded 280 basis points to
36.1% , compared to33.3% - Net Income increased
46.8% to$10.6 million , compared to$7.2 million - Net Income per Diluted Share of
$0.23 , compared to$0.17 - Adjusted EBITDA of
$19.1 million , compared to$13.9 million 1
Financial highlights for the fiscal year ended December 29, 2024 (52 weeks), compared to the fiscal year ended December 31, 2023 (53 weeks), include:
- Net Revenue increased
28.5% to$606.3 million , compared to$471.9 million - Gross Margin expanded 352 basis points to
37.9% , compared to34.4% - Net Income grew
108.8% to of$53.4 million , compared to$25.6 million - Net Income per Diluted Share of
$1.18 , compared to$0.59 - Adjusted EBITDA of
$86.7 million , compared to$48.3 million 1
“2024 was an outstanding year for Vital Farms. We exceeded
| 1Adjusted EBITDA is a non-GAAP financial measure defined in the section titled “Non-GAAP Financial Measures” below and is reconciled to net income, its closest comparable GAAP measure, at the end of this release. |
For the 13 Weeks Ended December 29, 2024
Net revenue increased
The extra week in the fourth quarter of 2023, which was 14 weeks compared to 13 weeks in the fourth quarter of 2024, contributed
Gross profit was
Income from operations in the fourth quarter of 2024 was
Net income was
Net income per diluted share was
Adjusted EBITDA was
The extra week in the fourth quarter of 2023, which was 14 weeks compared to 13 weeks in the fourth quarter of 2024, contributed
Adjusted EBITDA excludes certain non-cash items. Adjusted EBITDA is a non-GAAP financial measure defined in the section titled “Non-GAAP Financial Measures” below and is reconciled to net income, its closest comparable GAAP measure, at the end of this release.
For the 52 Weeks Ended December 29, 2024
Net revenue increased
Gross profit was
Income from operations in fiscal year 2024 was
Net income was
Net income per diluted share was
Adjusted EBITDA was
The extra week in fiscal year 2023, which was 53 weeks compared to 52 weeks in fiscal year 2024, contributed
Adjusted EBITDA excludes certain non-cash items. Adjusted EBITDA is a non-GAAP financial measure defined in the section titled “Non-GAAP Financial Measures” below and is reconciled to net income, its closest comparable GAAP measure, at the end of this release.
Balance Sheet and Cash Flow Highlights
Cash, cash equivalents and marketable securities were
Capital expenditures totaled
Fiscal 2025 Outlook
Thilo Wrede, Vital Farms’ Chief Financial Officer, commented: “Boosted by high consumer demand for Vital Farms products and a favorable commodity cost environment, we delivered another strong financial performance in 2024. Looking ahead, I am pleased to announce our financial guidance for 2025. Our outlook for 2025 reflects our expectation that we will continue to be supply constrained early in the year, but we expect those constraints to ease into the second half as we benefit from new family farms coming online and our new washing and packing line at our Egg Central Station facility in Springfield, Missouri becoming operational in the fourth quarter of 2025. We will continue to invest in our brands and our supply chain capabilities as we target
For the fiscal year 2025, we expect:
- Net revenue of at least
$740 million , which represents at least22% growth versus fiscal year 2024. - Adjusted EBITDA of at least
$100 million , which represents at least15% growth versus fiscal year 2024. - Capital expenditure for the full year in the range of
$50 million to$60 million . This reflects planned investments in the new washing and packing line at Egg Central Station in Missouri, our planned new egg washing and packing facility, accelerator farms, and the Digital Transformation project that we expect to go live in the second half 2025. We continue to evaluate our capital allocation priorities, and we will provide updates as necessary in future earnings reports.
Vital Farms’ guidance assumes that there are no significant disruptions to the supply chain or its customers or consumers, including any issues from adverse macroeconomic factors. Vital Farms cannot provide a reconciliation between its forecasted Adjusted EBITDA and net income and Adjusted EBITDA Margin and net income margin, their most directly comparable GAAP measures, without unreasonable effort due to the unavailability of reliable estimates for income taxes, among other items. These items are not within our control and may vary greatly between periods and could significantly impact future financial results.
Conference Call and Webcast Details
Vital Farms will host a conference call and webcast at 8:30 a.m. ET today to discuss the results. To participate on the live call, listeners in North America may dial +1-800-715-9871 and international listeners may dial +1-646-307-1963 with the Conference ID: 8674985. Alternatively, participants may access the live webcast on the Vital Farms Investor Relations website at https://investors.vitalfarms.com under “Events.” The webcast will be archived in 30 days.
About Vital Farms
Vital Farms (Nasdaq: VITL) is a Certified B Corporation that offers a range of ethically produced foods nationwide. Started on a single farm in Austin, Texas, in 2007, Vital Farms is now a national consumer brand that works with more than 425 family farms and is the leading U.S. brand of pasture-raised eggs by retail dollar sales. Vital Farms’ ethics are exemplified by its focus on the humane treatment of farm animals and sustainable farming practices. In addition, as a Delaware public benefit corporation, Vital Farms prioritizes the long-term benefits of each of its stakeholders, including farmers and suppliers, customers and consumers, communities and the environment, and crew members and stockholders. Vital Farms’ products, including shell eggs, butter, hard-boiled eggs, and liquid whole eggs, are sold in approximately 24,000 stores nationwide. Vital Farms pasture-raised eggs can also be found on menus at hundreds of foodservice operators across the country. For more information, visit https://vitalfarms.com/.
Forward-Looking Statements
This press release and the earnings call referencing this press release contain “forward-looking” statements, as that term is defined under the federal securities laws, including but not limited to statements regarding Vital Farms’ market opportunity, anticipated growth, expectations regarding supply constraints, timing regarding Vital Farms’ Digital Transformation project, specifications and timing regarding Vital Farms’ planned egg washing and packing facility in Seymour, Indiana and new egg grading system at Egg Central Station in Springfield, Missouri, the effect of such projects on Vital Farms’ future revenue, future growth of its family farm network, and future financial performance, including management’s outlook for fiscal year 2025 and management’s long-term outlook. These forward-looking statements are based on Vital Farms’ current assumptions, expectations, and beliefs and are subject to substantial risks, uncertainties, assumptions, and changes in circumstances that may cause Vital Farms’ actual results, performance, or achievements to differ materially from those expressed or implied in any forward-looking statement.
The risks and uncertainties referred to above include, but are not limited to: Vital Farms’ expectations regarding its revenue, expenses, and other operating results; Vital Farms’ ability to attract new customers, to successfully retain existing customers, to attract and retain its suppliers, distributors, and co-manufacturers, and to maintain its relationships with members of its existing farm network and further expand its farm network and development of its accelerator farms; Vital Farms’ ability to sustain or increase its profitability; Vital Farms’ expectations regarding its future growth in the foodservice channel; Vital Farms’ ability to procure sufficient high-quality eggs, cream for its butter, and other raw materials; real or perceived quality or food safety issues with Vital Farms’ products or other issues that adversely affect Vital Farms’ brand and reputation; changes in the tastes and preferences of consumers; the financial condition of, and Vital Farms’ relationships with, its farmers, suppliers, co-manufacturers, distributors, retailers, and foodservice customers, as well as the health of the foodservice industry generally; the effects of outbreaks of agricultural diseases, including avian influenza and egg drop syndrome, the perception that outbreaks may occur or regulatory or market responses to such outbreaks generally; the ability of Vital Farms, its farmers, suppliers, and its co-manufacturers to comply with food safety, environmental or other laws or regulations; the effects of a public health pandemic or contagious disease, or fear of such outbreaks, on Vital Farms’ supply chain, the demand for its products, and on overall economic conditions, consumer confidence and spending levels; specifications and timing regarding Vital Farms’ planned egg washing and packing facility in Seymour, Indiana and the timing for installation of an additional MOBA egg grading system at Egg Central Station facility in Missouri, and the impacts of prior or future expansions of such facilities on Vital Farms’ future revenue and farm network; future investments in its business, anticipated capital expenditures and estimates regarding capital requirements; anticipated changes in Vital Farms’ product offerings and Vital Farms’ ability to innovate to offer new products or enter into new product categories; the costs and success of marketing efforts; Vital Farms’ ability to effectively manage its growth, to maintain effective internal controls over financial reporting and to remediate and prevent material weaknesses in its internal controls; Vital Farms’ ability to compete effectively with existing competitors and new market entrants; the impact of adverse economic conditions, elevated interest rates, and inflation; the potential influence of Vital Farms’ focus on a specific public benefit purpose and producing a positive effect for society on its financial performance; the sufficiency of Vital Farms’ cash, cash equivalents, marketable securities and availability of credit under its credit facility to meet liquidity needs; seasonality; and the growth rates of the markets in which Vital Farms competes.
These risks and uncertainties are more fully described in Vital Farms’ filings with the Securities and Exchange Commission (SEC), including in the sections entitled “Risk Factors” in its Annual Report on Form 10-K for the fiscal year ended December 29, 2024, which Vital Farms anticipates filing on February 27, 2025, and other filings and reports that Vital Farms may file from time to time with the SEC. Moreover, Vital Farms operates in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for management to predict all risks, nor can Vital Farms assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements Vital Farms may make. In light of these risks, uncertainties, and assumptions, Vital Farms cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. Forward-looking statements represent management’s beliefs and assumptions only as of the date of this press release. Vital Farms disclaims any obligation to update forward-looking statements except as required by law.
Media:
Rob Discher
Rob.Discher@vitalfarms.com
Investors:
Anthony Bucalo
Anthony.Bucalo@vitalfarms.com
| VITAL FARMS, INC. | ||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
| (Amounts in thousands, except share amounts) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| 13-Weeks | 14-Weeks | 52-Weeks | 53-Weeks | |||||||||||||
| Ended | Ended | Ended | Ended | |||||||||||||
| December | December | December | December | |||||||||||||
| 29, | 31, | 29, | 31, | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net revenue | $ | 165,989 | $ | 135,811 | $ | 606,307 | $ | 471,857 | ||||||||
| Cost of goods sold | 106,113 | 90,617 | 376,381 | 309,531 | ||||||||||||
| Gross profit | 59,876 | 45,194 | 229,926 | 162,326 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | 37,369 | 28,794 | 133,939 | 101,728 | ||||||||||||
| Shipping and distribution | 9,502 | 7,309 | 32,435 | 27,344 | ||||||||||||
| Total operating expenses | 46,871 | 36,103 | 166,374 | 129,072 | ||||||||||||
| Income from operations | 13,005 | 9,091 | 63,552 | 33,254 | ||||||||||||
| Other income (expense), net: | ||||||||||||||||
| Interest expense | (239 | ) | (268 | ) | (1,010 | ) | (782 | ) | ||||||||
| Interest income | 1,435 | 1,044 | 5,246 | 2,542 | ||||||||||||
| Other expense, net | 121 | (306 | ) | (250 | ) | (2,813 | ) | |||||||||
| Total other income (expense), net | 1,317 | 470 | 3,986 | (1,053 | ) | |||||||||||
| Net income before income taxes | 14,322 | 9,561 | 67,538 | 32,201 | ||||||||||||
| Income tax provision | 3,740 | 2,351 | 14,150 | 6,635 | ||||||||||||
| Net income | 10,582 | 7,210 | 53,388 | 25,566 | ||||||||||||
| Net income per share: | ||||||||||||||||
| Basic: | $ | 0.24 | $ | 0.17 | $ | 1.25 | $ | 0.62 | ||||||||
| Diluted: | $ | 0.23 | $ | 0.17 | $ | 1.18 | $ | 0.59 | ||||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic: | 43,843,723 | 41,623,680 | 42,849,660 | 41,192,544 | ||||||||||||
| Diluted: | 45,653,333 | 43,355,915 | 45,127,128 | 43,312,836 | ||||||||||||
| VITAL FARMS, INC. | |||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
| (Amounts in thousands, except share amounts) | |||||||||
| 52-Weeks | 53-Weeks | ||||||||
| Ended | Ended | ||||||||
| December 29, | December 31, | ||||||||
| 2024 | 2023 | ||||||||
| Assets | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 150,601 | $ | 84,149 | |||||
| Investment securities, available-for-sale | 9,692 | 32,667 | |||||||
| Accounts receivable, net of allowance for credit losses of | 54,342 | 39,699 | |||||||
| Inventories | 23,666 | 32,895 | |||||||
| Prepaid expenses and other current assets, net of allowance for credit losses of | 7,740 | 6,114 | |||||||
| Total current assets | 246,041 | 195,524 | |||||||
| Property, plant and equipment, net | 84,521 | 66,839 | |||||||
| Operating lease right-of-use assets | 19,617 | 8,911 | |||||||
| Goodwill and other assets | 9,153 | 3,904 | |||||||
| Total assets | $ | 359,332 | $ | 275,178 | |||||
| Liabilities and Stockholders’ Equity | |||||||||
| Current liabilities: | |||||||||
| Accounts payable | $ | 38,582 | $ | 33,485 | |||||
| Accrued liabilities | 31,328 | 24,218 | |||||||
| Operating lease liabilities, current | 3,849 | 3,057 | |||||||
| Finance lease liabilities, current | 3,932 | 3,255 | |||||||
| Income taxes payable | 838 | 1,206 | |||||||
| Total current liabilities | 78,529 | 65,221 | |||||||
| Operating lease liabilities, non-current | 2,918 | 5,771 | |||||||
| Finance lease liabilities, non-current | 8,011 | 10,481 | |||||||
| Other liabilities | 572 | 1,028 | |||||||
| Total liabilities | $ | 90,030 | $ | 82,501 | |||||
| Commitments and contingencies (Note 20) | |||||||||
| Stockholders’ equity: | |||||||||
| Preferred stock, | — | — | |||||||
| Common stock, | 4 | 4 | |||||||
| Additional paid-in capital | 186,182 | 163,325 | |||||||
| Retained earnings | 83,113 | 29,725 | |||||||
| Accumulated other comprehensive loss | 3 | (377 | ) | ||||||
| Total stockholders’ equity | $ | 269,302 | $ | 192,677 | |||||
| Total liabilities and stockholders’ equity | $ | 359,332 | $ | 275,178 | |||||
| VITAL FARMS, INC. | ||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
| (Amounts in thousands) | ||||||||||
| (Unaudited) | ||||||||||
| 52-Weeks | 53-Weeks | |||||||||
| Ended | Ended | |||||||||
| December 29, | December 31, | |||||||||
| 2024 | 2023 | |||||||||
| Cash flows from operating activities: | ||||||||||
| Net income | $ | 53,388 | $ | 25,566 | ||||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||
| Depreciation | 13,093 | 7,925 | ||||||||
| Reduction in the carrying amount of right-of-use assets | 4,191 | 4,129 | ||||||||
| Amortization of available-for-sale debt securities | 110 | 348 | ||||||||
| Amortization of debt issuance costs | 60 | — | ||||||||
| Stock-based compensation expense | 10,268 | 7,417 | ||||||||
| Uncertain tax positions | (82 | ) | 58 | |||||||
| Deferred taxes | (1,864 | ) | (179 | ) | ||||||
| Net realized losses on derivative instruments | 272 | 2,711 | ||||||||
| Other | 1,605 | 438 | ||||||||
| Changes in operating assets and liabilities: | ||||||||||
| Accounts receivable | (14,785 | ) | (862 | ) | ||||||
| Inventories | 8,930 | (6,443 | ) | |||||||
| Income taxes receivable | — | — | ||||||||
| Prepaid expenses and other current assets | (1,244 | ) | (1,151 | ) | ||||||
| Deposits and other assets | (3,755 | ) | 98 | |||||||
| Income taxes payable | (368 | ) | 782 | |||||||
| Accounts payable | 5,810 | 6,671 | ||||||||
| Accrued liabilities | 6,749 | 5,157 | ||||||||
| Operating lease liabilities | (17,554 | ) | (1,759 | ) | ||||||
| Net cash provided by operating activities | $ | 64,824 | $ | 50,906 | ||||||
| Cash flows from investing activities: | ||||||||||
| Purchases of property, plant and equipment | (28,646 | ) | (11,538 | ) | ||||||
| Purchases of leasehold improvements | — | — | ||||||||
| Purchases of available-for-sale debt securities | — | (982 | ) | |||||||
| Purchases of derivative instruments | (1,701 | ) | (1,971 | ) | ||||||
| Sales of available-for-sale debt securities | — | 2,895 | ||||||||
| Settlements of derivative instruments | — | 106 | ||||||||
| Maturities and call redemptions of available-for-sale debt securities | 23,320 | 32,265 | ||||||||
| Proceeds from the sale of property, plant and equipment | 1 | 1,056 | ||||||||
| Return of investment in variable interest entity | — | 552 | ||||||||
| Dissolution of equity investment | — | — | ||||||||
| Net cash (used in) provided by investing activities | $ | (7,026 | ) | $ | 22,383 | |||||
| VITAL FARMS, INC. | ||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
| (Amounts in thousands) | ||||||||||
| (Unaudited) | ||||||||||
| 52-Weeks | 53-Weeks | |||||||||
| Ended | Ended | |||||||||
| December 29, | December 31, | |||||||||
| 2024 | 2023 | |||||||||
| Cash flows from financing activities: | ||||||||||
| Proceeds from borrowing under revolving line of credit | — | 7,500 | ||||||||
| Proceeds from exercise of stock options | 13,680 | 692 | ||||||||
| Proceeds from issuance of common stock under employee stock purchase plan | 419 | 296 | ||||||||
| Repayment of revolving line of credit | — | (7,500 | ) | |||||||
| Payment of tax withholding obligation on vested RSU shares | (1,510 | ) | (796 | ) | ||||||
| Principal payments under finance lease obligations | (3,521 | ) | (2,246 | ) | ||||||
| Payment of financing costs | (414 | ) | — | |||||||
| Payment of contingent consideration | — | — | ||||||||
| Net cash provided by (used in) financing activities | $ | 8,654 | $ | (2,054 | ) | |||||
| Net increase in cash and cash equivalents | 66,452 | 71,235 | ||||||||
| Cash and cash equivalents at beginning of the period | 84,149 | 12,914 | ||||||||
| Cash and cash equivalents at end of the period | $ | 150,601 | $ | 84,149 | ||||||
| Supplemental disclosure of cash flow information: | ||||||||||
| Cash paid for interest | $ | 950 | $ | 775 | ||||||
| Cash paid for income taxes | $ | 16,578 | $ | 5,996 | ||||||
| Supplemental disclosure of non-cash investing and financing activities: | ||||||||||
| Purchases of property, plant and equipment included in accounts payable and accrued liabilities | $ | 884 | $ | 187 | ||||||
Non-GAAP Financial Measures
We report our financial results in accordance with GAAP. However, management believes that Adjusted EBITDA and Adjusted EBITDA Margin, non-GAAP financial measures, provide investors with additional useful information in evaluating our performance.
Adjusted EBITDA and Adjusted EBITDA Margin are financial measures that are not required by or presented in accordance with GAAP. We believe that Adjusted EBITDA and Adjusted EBITDA Margin, when taken together with our financial results presented in accordance with GAAP, provide meaningful supplemental information regarding our operating performance and facilitate internal comparisons of our historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, we believe that the use of Adjusted EBITDA and Adjusted EBITDA Margin are helpful to our investors as they are measures used by management in assessing the health of our business, determining incentive compensation and evaluating our operating performance, as well as for internal planning and forecasting purposes.
We calculate Adjusted EBITDA as net income, adjusted to exclude: (1) depreciation and amortization; (2) stock-based compensation expense; (3) (benefit) or provision for income taxes as applicable; (4) interest expense; and (5) interest income. We calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by Net Revenue.
Adjusted EBITDA and Adjusted EBITDA Margin are presented for supplemental informational purposes only, have limitations as analytical tools and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Some of the limitations of Adjusted EBITDA and Adjusted EBITDA Margin include that (1) they do not properly reflect capital commitments to be paid in the future, (2) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and Adjusted EBITDA and Adjusted EBITDA Margin do not reflect these capital expenditures, (3) they do not consider the impact of stock-based compensation expense, (4) they do not reflect other non-operating expenses, including interest expense; and (5) they do not reflect tax payments that may represent a reduction in cash available to us. In addition, our use of Adjusted EBITDA and Adjusted EBITDA Margin may not be comparable to similarly titled measures of other companies because they may not calculate Adjusted EBITDA and Adjusted EBITDA Margin in the same manner, limiting the usefulness as comparative measures. Because of these limitations, when evaluating our performance, you should consider Adjusted EBITDA and Adjusted EBITDA Margin alongside other financial measures, including our net income and other results stated in accordance with GAAP.
The following table presents a reconciliation of Adjusted EBITDA to net income and a reconciliation of Adjusted EBITDA Margin to net income margin, the most directly comparable financial measures stated in accordance with GAAP, for the 13-week, 14-week, 52-week and 53-week periods presented.
| VITAL FARMS, INC. | ||||||||||||||||||
| ADJUSTED EBITDA RECONCILIATION | ||||||||||||||||||
| (Amounts in thousands) | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| 13-Weeks | 14-Weeks | 52-Weeks | 53-Weeks | |||||||||||||||
| Ended | Ended | Ended | Ended | |||||||||||||||
| December | December | December | December | |||||||||||||||
| 29, | 31, | 29, | 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| (in thousands) | (in thousands) | |||||||||||||||||
| Net income | $ | 10,582 | $ | 7,210 | $ | 53,388 | $ | 25,566 | ||||||||||
| Depreciation and amortization1 | 3,264 | 3,194 | 13,093 | 10,490 | ||||||||||||||
| Stock-based compensation expense | 2,696 | 1,915 | 10,268 | 7,417 | ||||||||||||||
| Income tax provision | 3,740 | 2,351 | 14,150 | 6,635 | ||||||||||||||
| Interest expense | 239 | 268 | 1,010 | 782 | ||||||||||||||
| Interest income | (1,435 | ) | (1,044 | ) | (5,246 | ) | (2,542 | ) | ||||||||||
| Adjusted EBITDA | $ | 19,086 | $ | 13,894 | $ | 86,663 | $ | 48,348 | ||||||||||
| Net revenue | $ | 165,989 | $ | 135,811 | $ | 606,307 | $ | 471,857 | ||||||||||
| Net income margin2 | ||||||||||||||||||
| Adjusted EBITDA margin3 | ||||||||||||||||||
| 1 Amount also includes finance lease amortization. |
| 2 Net income margin is calculated by dividing net income by net revenue. |
| 3 Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by net revenue. |
FAQ
What was Vital Farms' (VITL) revenue growth in fiscal year 2024?
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How much did Vital Farms' (VITL) net income grow in fiscal year 2024?
