Egg producer Vital Farms reported a net revenue increase of 37.4% to $82.9 million in its second quarter 2022 financial results, published on August 4, 2022. The achievement was attributed to the producer’s growing capacity, expansions in retail distribution and increases in egg and butter-related sales, according to Russell Diez-Canseco, Vital Farms’ President and Chief Executive Officer.
Additionally, the company reported a gross profit of US$24.9 million for the quarter, compared to US$21.9 million in 2021’s second quarter, due to an increase in sales.
Changes in the quarter’s gross margin were attributable to an increase in input costs for eggs and butter, which the company offset though increased pricing implemented in late May.
“We delivered our expected profits despite a tough operating environment, which included significant cost increases across both inputs and freight,” Diez-Canseco said.
The higher input costs, along with increased employee-related costs and greater shipping and distribution expenses, caused net income to be US$0.7 million for the quarter, compared to US$3.9million in 2021’s Q2.
Bo Meissner, Vital Farms Chief Financial Officer, stated, “We enter the second half with price increases across our portfolio, which have been well-received by retailers and consumers. We believe these prudent increases will return us to low-to-mid 30% gross margins and support our continued progress toward our long-term goal of low double-digit Adjusted EBITDA Margin.”
Vital is planning on a record net revenue for 2022
For fiscal year 2022, Vital Farms management projects a net revenue of over $340 million, which would be an increase of 30% compared to fiscal year 2021.
“Vital Farms remains the fastest-growing brand in dollars and gained more than double the amount of units relative to our next largest competitor in the egg category over the past 52 weeks,” stated Diez-Canseco.
“Our capacity build continues with a network that now exceeds 300 family farms and a fully operational expanded Egg Central Station, which puts us in a position to double our current net revenue base to over $650 million.”
