Vital Farms reported a third quarter net revenue of US$92 million, a 42.4% increase compared to the same quarter in the prior year, during its financial review on November 3, 2022. The growth was attributed to continuous improvements in its egg sales, a 28% growth in volume, rising prices in the grocery store and broader distribution.
For the full fiscal year 2022, Vital Farms’ management team is expecting a net revenue of over US$340 million, a 30% increase compared to fiscal year 2021.
“Our brand has maintained its positive momentum, as exemplified by 28% year-over-year volume growth during our third quarter, outpacing the category, which declined 0.5%,” stated Russell Diez-Canseco, Vital Farms President and Chief Executive Officer.
“This performance occurred during the most inflationary grocery environment in over 40 years. Additionally, Vital Farms added further retail distribution this quarter, and our household penetration was up over 40% compared to the same period last year to nearly eight million homes.”
The company’s gross profit for the quarter came to $29.5 million, 32% of its net revenue, compared to $19.8 million, or 30.7% of its net revenue in the prior year quarter.
The growth in profit and margin is attributed to higher sales and pricing, despite increased costs in its eggs and butter sectors, increased employee expenses that supported the company’s growth and added marketing costs.
Egg Central Station
This year, Vital Farms opened its newly expanded egg washing and packing facility Egg Central Station located in Missouri, which was estimated to bring in US$300 million of additional revenue. The expansion doubled the facility in size, enabled a larger production capacity and added 50 employees to the company.
Diez-Canseco added: "Our crew members continue to operate at a high level despite a challenging operating environment and cost increases across various inputs, including organic feed and packaging. I also want to recognize our farmers’ tremendous passion and resilience. They have dealt with a range of external factors, including keeping the girls safe from avian influenza and higher costs of doing business across their daily operations.”