Vital Farms(VITL) - 2024 Q4 - Annual Report

Financial Performance - The company reported net revenue of $606.3 million for fiscal 2024, up from$471.9 million in fiscal 2023, representing a year-over-year increase of approximately 28.3%[342]. - Net income for fiscal 2024 was $53.4 million, compared to$25.6 million in fiscal 2023, indicating a growth of 108.6%[342]. - Adjusted EBITDA for fiscal 2024 was $86.7 million, up from$48.3 million in fiscal 2023, reflecting a significant increase of 79.6%[342]. - Gross profit for fiscal year 2024 was $229.9 million, a 42$162.3 million in fiscal year 2023, with a gross margin improvement from 34% to 38%[372]. - Selling, general and administrative expenses rose to $133.9 million, a 32$101.7 million in fiscal year 2023, maintaining 22% of net revenue[373]. - Shipping and distribution expenses increased by $5.1 million or 19$32.4 million in fiscal year 2024[374]. - The income tax provision increased by $7.5 million or 113$14.2 million in fiscal year 2024, driven by higher net income before taxes[379]. - Interest income increased by $2.7 million or 106$5.2 million in fiscal year 2024, primarily due to higher interest on available-for-sale securities[377]. - Cash provided by operating activities increased to $64.8 million for the fiscal year ended December 29, 2024, compared to$50.9 million for the fiscal year ended December 31, 2023, marking a 27.4% increase[398]. - Net income for the fiscal year ended December 29, 2024, was $53.4 million, up from$25.6 million in the previous year, representing a 109.5% increase[389]. Growth and Expansion Plans - The company plans to open a second egg washing and packing facility in Seymour, Indiana, expected to be operational by 2027, to support continued supply and growth[339]. - The company purchased approximately 1,040 acres of farmland in Indiana for $7.5 million to develop "accelerator farms" for learning and development within its farm network[340]. - The company plans to continue investing in innovation to expand its product offerings, particularly in eggs and egg-related products, which generated approximately 96$7.0 million to $10.0 million in fiscal 2025 due to ongoing elevated construction costs associated with new farms[336]. - The company expects cost of goods sold to increase in the future due to the development of a new egg washing and packing facility in Indiana[363]. - The company plans to install an additional Moba egg grading system at its facility in Missouri, expecting capital expenditures of approximately$12.0 million to $16.0 million in the next 12 months[393]. - The company expects to incur approximately$20.0 million to $30.0 million in capital expenditures related to the development of accelerator farms over the next 12 months[393]. Market Presence - The company has a household penetration rate of approximately 9.2$160.3 million as of December 29, 2024, ensuring sufficient liquidity for long-term growth investments[347]. - As of December 29, 2024, the company had cash and cash equivalents totaling $150.6 million and investments in available-for-sale securities amounting to$9.7 million[417]. - The effective maturity of the company's investment securities available for sale was approximately 3 months, with a composite credit rating of Aa2 on the Moody's rating scale[417]. - The company does not engage in trading or speculative investments and has not utilized any derivative financial instruments to manage interest rate risk exposure during the fiscal year ended December 29, 2024[418]. - A hypothetical 10% change in interest rates is not expected to have a material effect on the company's results of operations or financial condition for the fiscal year ended December 29, 2024[416]. - The JPMorgan Credit Facility provides a five-year, $60.0 million revolving credit facility, which replaced the previous PNC Credit Facility[394]. - As of December 29, 2024, there was no outstanding balance under the JPMorgan Credit Facility, and the company was in compliance with all covenants[396]. Cost Management - A hypothetical 10$11.1 million for the fiscal year ended December 29, 2024[414]. - The company anticipates incurring approximately $8.0 million to$11.0 million in capital expenditures for a new egg washing and packing facility in the next 12 months[393].