Business was good for Vital Farms during the third quarter of the 2020 fiscal year, as the company saw its net income and net revenue more than double.
The pasture-raised egg producer on November 10 reported its results for the quarter ending September 27.
Net income for the company was $1.7 million, compared to $0.8 million for the same quarter of 2019. Net revenue, meanwhile, increased 57% on a year-over-year basis to $53.4 million.
“We are pleased to report strong third quarter results including continued growth in the number of households choosing our products and consumers making repeat purchases, both of which were driven in part by sustained at-home consumption trends as a result of COVID-19,” Russell Diez-Canseco, president and chief executive officer, Vital Farms, said in a press release.
“Looking ahead, we remain focused on building a trusted ethical food brand and executing our growth strategy to further increase our household penetration and presence in retail as well as ongoing product innovation. Our strategy is underpinned by an unwavering commitment to prioritizing our stakeholders who have worked tirelessly throughout the pandemic including our small family farm partners, dedicated crew members, and the communities in which we operate. Vital Farms serves a robust market, and we believe our premium brand is strategic and valuable for retailers as more consumers are seeking ethically produced foods.”
Vital Farms was still a private company during a portion of the third quarter, which began on June 29. The company held an initial public offering (IPO) on August 4. It now trades on the Nasdaq exchange under the ticker VITL.
Vital Farms egg products include shell eggs, hard-boiled eggs and liquid whole eggs. The company is also involved in the production of free-range butter and ghee. As of December 31, 2019, Vital Farms had a flock of 300,000 hens.
According to a spokesperson for the company, Vital Farms is the leading pasture-raised egg and butter brand in the United States and the No. 2 egg brand in the United States by retail dollar sales. Vital Farms was also described as the leading egg brand at Whole Foods Market and Sprouts by retail dollar sales, and the No. 2 egg brand at Kroger and Target stores, also by retail dollar sales.
Secondary public offering proposed
On the same day Vital Farms released its quarterly results, it also announced the commencement of an underwritten public offering of 5 million shares of common stock offered by certain selling stockholders of Vital Farms.
In addition, the selling stockholders expect to grant the underwriters a 30-day option to purchase up to an additional 750,000 shares of common stock at the public offering price, less underwriting discounts and commissions.
Vital Farms will not receive any proceeds from the sale of common stock offered by the selling stockholders.
The company stated that the offering is subject to market conditions and did not offer assurance regarding when the offering would be completed.
Goldman Sachs & Co., Morgan Stanley, Credit Suisse Securities USA and Jeffries are the joint lead bookrunning managers for the proposed offering.
