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Jun 30, 2024
Vital Farms Q2 2024 Earnings Report
Reported strong financial results for Q2 2024, with significant revenue growth and increased profitability.
Key Takeaways
Vital Farms reported a strong second quarter with net revenue increasing by 38.5% to $147.4 million and net income reaching $16.3 million. The company raised its fiscal year 2024 outlook, driven by strong first-half performance and a positive outlook for the remainder of the year. They are also planning a new egg washing and packing facility in Seymour, Indiana.
Net revenue increased by 38.5% to $147.4 million compared to the prior year.
Gross margin expanded by 362 basis points to 39.1%.
Net income increased to $16.3 million, compared to $6.7 million in the prior year.
The company is raising its fiscal year 2024 expectations.
Vital Farms
Vital Farms
Forward Guidance
Vital Farms raised its fiscal year 2024 outlook, reflecting strong year-to-date performance and increased confidence for the remainder of the year. The increased guidance is based on a favorable commodity outlook and strong consumer demand supported by the company's marketing reinvestment strategy.
Positive Outlook
- Net revenue of at least $590 million, representing at least 25% growth versus fiscal year 2023.
- Adjusted EBITDA of at least $75 million, representing at least 55% growth versus fiscal year 2023.
- Favorable commodity outlook.
- Strong consumer demand.
- Marketing reinvestment strategy.
Challenges Ahead
- Assumes no significant disruptions to the supply chain.
- Assumes no significant disruptions to customers or consumers.
- Assumes no issues from adverse macroeconomic factors.
- Cannot provide a reconciliation between forecasted Adjusted EBITDA and net income due to the unavailability of reliable estimates for income taxes.
- These items are not within our control and may vary greatly between periods and could significantly impact future financial results.