U.S. egg producer Vital Farms’ Q1 net revenue for the year surpassed US$77 million, a 31% increase compared to last year, due to constant growth in sales and distribution increases.
Even though the recent removal of Vital Farms’ breakfast product line cost the producer US$1 million, its gross profit came to $21.7 million for the quarter, compared to $21.3 million in the same quarter last year, due to higher sales and an increase in organic shell egg pricing it implemented in January 2022.
Operational losses cost the company US$4.1 million in the quarter, mainly attributable to greater input costs and distribution expenses, the producer explained in its 2022 Q1 financial results review.
Vital Farms’ management team confirmed it is hopeful that fiscal year 2022’s net revenue goal of over $340 million will be met, a predicted increase of 30% when compared to fiscal year 2021’s outcome.
“This year is off to the strong start we projected,” stated Russell Diez-Canseco, Vital Farms’ President and Chief Executive Officer.
“We’re delivering on our growth plans with continued gains in retail distribution and household penetration, and we are building capacity with a network of nearly 300 family farms and the expansion of Egg Central Station, which is now fully operational and positions us to double our current net revenue base in the coming years.”
Egg Central Station is the company’s Missouri-based pasture-raised egg farm it opened in 2017.
Blue eggs
In April 2022, Vital Farms introduced a new egg line called True Blues, which offers pasture-raised heirloom blue eggs laid by Azur hens. While True Blues provides a similar nutritional value when compared to other eggs, the producer believes novelty eggs will soon be a consumer favorite.
“People are looking for new ways to bring novelty to their everyday, and eggs as a cooking staple are no exception,” stated Heather Mace, Vital Farms’ Director of Brand Management. “We hope these festive pastel blue eggs spark excitement in our community, whether they are hard-boiled for Easter brunches and egg hunts, or simply used to brighten up a weekday breakfast.”
