Vital Farms hits record Q4 with 2021 egg sales

Russell Diez-Canseco, Vital Farms’ President and CEO, gave insight on the company during an earnings review of its Fourth Quarter and Fiscal Year 2021.

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zimmytws | BigStockPhoto.com
zimmytws | BigStockPhoto.com

Vital Farms saw its net revenue increase to US$77.4 million in the fourth quarter of 2021, a 43.4% increase compared to the fourth quarter of 2020.

On March 10, 2022, Russell Diez-Canseco, Vital Farms’ President and CEO, gave insight on the company during an earnings review of its Fourth Quarter and Fiscal Year 2021.

Profits

The company’s fiscal 2021 ended strong with net revenues of US$260.9 million for the year, an increase of 21.8% compared to its fiscal 2020.

Growth was attributed to escalated egg and butter sales, with volume increases at the customer level and a surge in distribution with the company’s retail partners.

Additionally, Vital Farms saw increases in gross profits in the fourth quarter and the fiscal 2021 year compared to 2020, with $19.8 million, compared to $17.6 million, and $82.9 million, compared to $74.5 million, respectively. The increases were mostly due to higher sales. Despite higher profits, the company’s margins declined due to an increase in input costs and inbound freight inflation.

Losses

Net losses came to $3.6 million in the fourth quarter of 2021, compared to $0.8 million in the last quarter of 2020, which is mainly credited to higher shipping and distribution expenses and costs associated with hiring employees to support the company’s growth.

The company’s net income was $2.4 million in fiscal year 2021, compared to net income of $8.8 million in the prior year period. Capital expenditures totaled $16.7 million in 2021, compared to $10.3 million in 2020, primarily due to Egg Central Station’s expansion.

Vital Farms year ahead

In 2022, Vital Farms’ management team is planning to reach a net revenue of more than $340 million. This would be an increase of 30% compared to fiscal year 2021.

Diez-Canseco stated, “We made significant gains in retail distribution and increased Vital Farms’ household penetration 15% sequentially to over 6.4 million households. Additionally, our 12-count pasture raised eggs were the number one selling branded egg item in the U.S. during the fourth quarter.”

Bo Meissner, Chief Financial Officer, said, “We are pleased with our record fourth quarter revenue and strong level of consumer demand. We expect to continue our outsized level of top-line momentum in 2022, while navigating an ever-changing operating environment.”

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