AUSTIN - Vital Farms (NASDAQ:VITL), a leader in ethically produced foods, reported a robust fourth quarter with a 23.4% increase in net revenue, reaching $135.8 million and surpassing the consensus estimate of $131.84 million.
The company's earnings per share (EPS) of $0.17 also outperformed analyst expectations of $0.09. Following the announcement, shares of Vital Farms surged 10.47%, indicating a strong positive response from investors.
The company's financial success in the fourth quarter is attributed to a combination of higher prices and volume gains, with an 11.6% increase in volume driven by both new and existing retail customers. Excluding an extra week in the quarter, revenue still showed a significant rise of 15.7%. Gross profit for the quarter stood at $45.2 million, or 33.3% of net revenue, compared to $33.3 million in the previous year, reflecting volume gains and strategic pricing adjustments across their shell egg portfolio.
Vital Farms' President and CEO, Russell Diez-Canseco, expressed gratitude to stakeholders for their commitment to the company's mission of bringing ethical food to the table. He highlighted the company's strong position for the upcoming year and reaffirmed their goal of becoming a $1 billion business by 2027.
Looking ahead, Vital Farms provided a positive outlook for fiscal year 2024, projecting net revenue of at least $552 million, which would represent a minimum 17% increase compared to fiscal year 2023. This forecast slightly exceeds the analyst consensus of $549.7 million. The company also anticipates adjusted EBITDA of at least $57 million, marking an 18% increase from the previous year and 20% when accounting for the extra week in fiscal year 2023. Capital expenditures are expected to be between $35 million and $45 million.
The company's CFO, Thilo Wrede, commented on the strong financial performance and the brand's growing market share, which positions Vital Farms well for meeting its positive expectations for 2024 and achieving long-term financial targets.
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