Vital Farms Reports First Quarter 2025 Financial Results

Core Insights - Vital Farms reported a record first quarter net revenue of $162.2 million, representing a 9.6% increase compared to the prior year period [1][3][6] - The company reaffirmed its fiscal year 2025 outlook, targeting $740 million in net revenue and $100 million in adjusted EBITDA, while remaining on track to achieve a $1 billion net revenue target by 2027 [1][12][15] Financial Performance - Net revenue for the first quarter increased to $162.2 million from $147.9 million, driven by price/mix benefits of $12.4 million and volume-related growth of $1.9 million [3][6] - Gross profit was $62.5 million, or 38.5% of net revenue, compared to $58.9 million, or 39.8% of net revenue in the prior year [4][6] - Income from operations decreased to $21.8 million from $24.2 million, attributed to higher crew member investments [5][6] - Net income was $16.9 million, down from $19.0 million, with net income per diluted share at $0.37 compared to $0.43 in the prior year [7][6] - Adjusted EBITDA was $27.5 million, or 16.9% of net revenue, down from $29.1 million, or 19.7% of net revenue in the prior year [8][6] Operational Highlights - The company has maintained 20 consecutive quarters of year-over-year volume and net revenue growth since its IPO in 2020, with a three-year net revenue CAGR of 28% [2][12] - Vital Farms expanded its network to over 450 family farmers and is on track with internal capacity expansion plans, including a new egg washing and packing line in Missouri [2][12] - The butter business saw a significant growth of 41% in net sales compared to the prior year, benefiting from increased consumer awareness [2][12] Capital Expenditures and Cash Flow - Capital expenditures for the first quarter totaled $3.1 million, up from $1.3 million in the prior year [11] - Cash, cash equivalents, and marketable securities were $161.3 million as of March 30, 2025, with no outstanding debt [10][12] Fiscal Year 2025 Outlook - The company expects net revenue of at least $740 million, representing a minimum of 22% growth versus fiscal year 2024, and adjusted EBITDA of at least $100 million, reflecting at least 15% growth [15][12] - Capital expenditures are projected to be in the range of $50 million to $60 million, focusing on new facilities and digital transformation projects [15][12]