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Sep 25, 2022
Vital Farms Q3 2022 Earnings Report
Reported record net revenue and improved gross margin and Adjusted EBITDA.
Key Takeaways
Vital Farms reported a strong third quarter with record net revenue of $92.0 million, a 42.4% increase year-over-year. The company also saw improvements in gross margin and Adjusted EBITDA, despite a challenging inflationary environment.
Net revenue increased by 42.4% to $92.0 million.
Net income was $0.7 million, compared to a net loss of $1.3 million in the prior year quarter.
Gross profit was $29.5 million, or 32.0% of net revenue, compared to $19.8 million, or 30.7% of net revenue, in the prior year quarter.
Adjusted EBITDA was $5.2 million, compared to $0.2 million in the prior year quarter.
Vital Farms
Vital Farms
Forward Guidance
Vital Farms reaffirmed its fiscal year 2022 outlook, expecting net revenue of more than $340 million and Adjusted EBITDA of more than $13 million.
Positive Outlook
- Reaffirming guidance for net revenue of more than $340 million for fiscal year 2022, a projected increase of 30% compared to fiscal year 2021.
- Reaffirming guidance for Adjusted EBITDA of more than $13 million for fiscal year 2022, an increase of 62% compared to fiscal year 2021.
- Focus on operational execution to maintain progress toward long-term goal of low double-digit Adjusted EBITDA Margin.
- Ongoing demand for products.
- No additional significant disruptions to the supply chain or its customers or consumers are assumed.
Challenges Ahead
- 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.
- Inability to provide a reconciliation between forecasted Adjusted EBITDA and net income due to the unavailability of reliable estimates for income taxes.
- Income taxes are not within the company's control and may vary greatly between periods.