Vital Farms Reports Second Quarter 2024 Financial Results and Raises Fiscal Year 2024 Guidance

Core Insights - Vital Farms reported a second quarter net revenue of $147.4 million, representing a 38.5% increase compared to the same period last year [1][2] - The company raised its fiscal year 2024 outlook, expecting net revenue of at least $590 million, which is a 25% growth from fiscal year 2023 [12] - Vital Farms plans to establish a new state-of-the-art egg washing and packing facility in Seymour, Indiana, aimed at enhancing growth and meeting future demand [1][14] Financial Performance - Net revenue increased by 38.5% to $147.4 million in Q2 2024, up from $106.4 million in Q2 2023, driven by a 35.8% volume gain and price/mix benefits [2][4] - Gross margin expanded by 362 basis points to 39.1% in Q2 2024, compared to 35.5% in the prior year [2][5] - Net income rose to $16.3 million in Q2 2024, compared to $6.7 million in the same quarter last year, with net income per diluted share increasing to $0.36 from $0.15 [7][2] Operational Highlights - Adjusted EBITDA for Q2 2024 was $23.3 million, or 15.8% of net revenue, compared to $11.3 million, or 10.7% of net revenue in Q2 2023 [8][29] - The company’s cash, cash equivalents, and marketable securities totaled $152.7 million as of June 30, 2024, with no outstanding debt [10] - Capital expenditures for the 26-week period ended June 30, 2024, were $6.9 million, up from $4.3 million in the same period last year [11] Future Outlook - The company anticipates adjusted EBITDA of at least $75 million for fiscal year 2024, reflecting a growth of at least 55% compared to fiscal year 2023 [12] - The new egg washing and packing facility in Seymour, Indiana, is expected to create at least 150 jobs and support approximately 165 additional family farms [15][14] - Vital Farms aims to reach a target of $1 billion in net revenue by 2027, supported by the new facility and an expanding network of over 350 family farms [1][15]