Vital Farms announced a net revenue of US$147.9 million in the first quarter of 2024, compared to the US$119.2 million earned in the first quarter of 2023, in its recent financial review.
According to Russell Diez-Canseco, Vital Farms’ President and CEO, the net revenue growth was driven by price benefits and volume gains of 18.4%. The volume increases are attributed to expanded item offerings and store distribution growth with new and existing retail customers.
Additionally, income from operations for the quarter grew to US$24.2 million, compared to US$10.9 million in the first quarter of 2023 due to higher sales.
“2024 is off to a very strong start with record net revenue in the first quarter of $147.9 million, reflecting net revenue growth of 24.1%,” said Diez-Canseco. “As a result of the momentum we have seen so far this year and our improved visibility into the rest of the year, we are raising our fiscal year 2024 outlook.”
The producer’s gross profit was US$58.9 million for the quarter, compared to US$42.7 million in the same quarter last year, which was mainly driven by price benefits and improved operational efficiencies. The lower costs of commodities and diesel also contributed to the gross profit, however, increased investments in employees at Vital’s egg washing and packing facility Egg Central Station offset the producer’s earnings.
In March 2024, Vital reported a net income of US$25.6 million for its fiscal 2023, a 2033% increase compared to fiscal 2022, due to continuously improving sales and gross profit.
Vital is expanding its processing capabilities
During its 2024 first quarter earnings conference call, Vital announced plans to construct a new egg washing and packing facility in Indiana.
Diez-Canseco said the new plant will incorporate similar design principles as its Egg Central Station facility in Springfield, Missouri. The company expects the new build to initially be able to support 165 family farms and employ approximately 150 additional crew members.
