Vital Farms increases its 2021 revenue by over 20 percent

On November 9, Russell Diez-Canseco, President and CEO of Vital Farms, gave insight on the company during the recent earnings review of its third quarter 2021 financial results that ended on September 26.

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Courtesy of Food Tank
Courtesy of Food Tank

On November 9, Russell Diez-Canseco, President and CEO of Vital Farms, gave insight on the company during the recent earnings review of its third quarter 2021 financial results that ended on September 26. 

“We delivered record net revenue for the second consecutive quarter, increased our network of family farms to over 250, expanded retail distribution to over 18,000 stores, and over 5.5 million households continue to trust our pasture-raised eggs,” stated Diez-Canseco. 

By the end of 2021, management for the company is anticipating a net revenue of $253 to $256 million, an increase of 18-19% compared to last year.

Third quarter results

The company’s net revenue increased 21.1% to $64.6 million in the third quarter of the year, compared to $53.4 million during the third quarter of 2020. The growth in net revenue was attributed to continued growth in egg sales, increases in customer volume, growth in butter sales and distribution gains with its retail partners.

Gross profits were $19.9 million (30.7% of the total net revenue) compared to $18.4 million in the same period last year due to higher sales. An increase in grain costs for farmers, which was highest in the company’s second quarter, attributed to the change in gross margin.

Capital expenditures were $14.2 million for the third quarter of 2021, compared to $6.7 million in the previous year period. “We are pleased with our record third quarter revenue and our two-year CAGR of 37.7%. We will continue to invest behind our strategy with the goal of driving meaningful net revenue growth as we provide honest food to even more families across the U.S.” stated Bo Meissner, Chief Financial Officer for Vital Farms.

Net losses

Net losses came to $1.3 million, compared to $1.7 million in the same period last year. The company took a $1.8 million loss from operations in the quarter, compared to an operations income of $2.4 million in the same quarter last year, mostly due to incremental costs related to the growth in head count to support production and higher freight costs.

While the company has no outstanding debt, net cash earned by operations totaled $12.3 million for 2021 through September 26, compared to $15.0 million for the same time frame in 2020.

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