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Mar 26, 2023
Vital Farms Q1 2023 Earnings Report
Achieved record net revenue and Adjusted EBITDA, driven by strong execution and consumer demand.
Key Takeaways
Vital Farms reported a strong start to 2023, achieving record net revenue of $119.2 million, a 54.7% increase year-over-year, and a net income of $7.2 million for the first quarter ended March 26, 2023. Volume grew 26% during the period, driven by increases at both new and existing customers, as well as pricing increases.
Net revenue increased by 54.7% to $119.2 million compared to the prior year.
Net income was $7.2 million, a significant improvement from the net loss of $1.5 million in the prior year quarter.
Gross profit was $42.7 million, representing 35.8% of net revenue.
Adjusted EBITDA reached $13.9 million, or 11.6% of net revenue, compared to $0.5 million in the prior year.
Vital Farms
Vital Farms
Forward Guidance
Management maintains guidance for fiscal year 2023, expecting higher net revenue growth rates and gross margin in the first half than in the second half of the year.
Positive Outlook
- Net revenue of more than $450 million is expected for the full fiscal year 2023.
- Higher net revenue growth rates are anticipated in the first half of the year.
- Gross margin is expected to be higher in the first half of the year.
- Adjusted EBITDA of more than $30 million is expected for the full fiscal year 2023.
- Adjusted EBITDA in the first half is likely to exceed Adjusted EBITDA in the second half of the year.
Challenges Ahead
- Dynamic operating environment is likely to persist throughout fiscal 2023.
- Guidance assumes no additional significant disruptions to the supply chain.
- Guidance assumes no significant disruptions to customers or consumers.
- Guidance assumes no issues from adverse macroeconomic factors.
- Vital Farms cannot provide a reconciliation between its forecasted Adjusted EBITDA and net income (loss) without unreasonable effort due to the unavailability of reliable estimates for income taxes, among other items.