Vital Farms (Nasdaq: VITL), a Certified B Corporation that offers a
range of ethically produced foods nationwide, today updated its
long-term financial targets and plans to provide additional detail
at its Analyst Day presentation later today.
“Our progress as a brand and as a public company
reinforces my enthusiasm about the long-term potential of this
business. We believe that what we have built still has significant
growth potential within our current categories,” said Russell
Diez-Canseco, Vital Farms’ President and CEO.
Diez-Canseco continued, “Vital Farms is
well-positioned for continued significant net revenue growth
through 2027. The $1 billion net revenue target reflects our
confidence in our current business trajectory and the potential we
see to further our brand’s momentum. To get there, we will continue
increasing brand awareness among consumers, expand retail
distribution across new and existing partners, and scale our
resilient supply chain.”
Update on Long-Term Financial
Targets
- By the end of
fiscal year 2027, management expects to generate annual net revenue
of more than $1 billion in its current categories.
- Management expects
gross margin of at least 35% of net revenue by the fiscal year
2027.
- Management expects
Adjusted EBITDA Margin in the range of 12% to 14% of net revenue by
the fiscal year 2027.
Update on Fiscal 2023
Outlook
- For the full
fiscal year 2023, management continues to expect net revenue of
more than $465 million, which still anticipates higher net revenue
growth rates and gross margin in the first half of year than in the
second half of the year.
- Management
continues to expect Adjusted EBITDA of more than $35 million for
the full fiscal year 2023.
- Finally, management
also continues to expect fiscal year 2023 capital expenditures in
the range of $16 to $21 million.
Vital Farms’ guidance continues to assume that
there are no additional significant disruptions to the supply chain
or its customers or consumers, including any issues from adverse
macroeconomic factors. Vital Farms cannot provide a reconciliation
between its forecasted Adjusted EBITDA and Adjusted EBITDA Margin
and their most directly comparable GAAP measures without
unreasonable effort due to the unavailability of reliable estimates
for income taxes, among other items. These items are not within our
control and may vary greatly between periods and could
significantly impact future financial results.
Webcast Details
Vital Farms will host a webcast beginning at
10:00 a.m. ET with members of the leadership team. The presentation
will review updates across the business including an update on the
company’s long-term financial targets. Register here to access the
webcast. Alternatively, participants can access the live webcast on
the Vital Farms Investor Relations website at
https://investors.vitalfarms.com under “Events.”
About Vital Farms
Vital Farms (Nasdaq: VITL) is a Certified B
Corporation that offers a range of ethically produced foods
nationwide. Started on a single farm in Austin, Texas in 2007,
Vital Farms has become a national consumer brand that works with
over 300 family farms and is the leading U.S. brand of
pasture-raised eggs by retail dollar sales. Vital Farms' ethics are
exemplified by its focus on the humane treatment of farm animals
and sustainable farming practices. In addition, as a Delaware
public benefit corporation, Vital Farms prioritizes the long-term
benefits of each of its stakeholders, including farmers and
suppliers, customers and consumers, communities and the
environment, crew members, and stockholders. Vital Farms' products,
including shell eggs, butter, hard-boiled eggs, and liquid whole
eggs, are sold in approximately 24,000 stores nationwide. For more
information, please visit www.vitalfarms.com.
Forward-Looking Statements
This press release and the Analyst Day
presentation referencing this press release contain
“forward-looking” statements, as that term is defined under the
federal securities laws, including but not limited to statements
regarding Vital Farms’ market opportunity, anticipated growth, and
future financial performance, including management’s outlook for
fiscal year 2023 and management’s long-term outlook. These
forward-looking statements are based on Vital Farms’ current
assumptions, expectations, and beliefs and are subject to
substantial risks, uncertainties, assumptions, and changes in
circumstances that may cause Vital Farms’ actual results,
performance, or achievements to differ materially from those
expressed or implied in any forward-looking statement.
The risks and uncertainties referred to above
include, but are not limited to: Vital Farms’ expectations
regarding its revenue, expenses, and other operating results; Vital
Farms’ ability to acquire new customers, to successfully retain
existing customers, and to attract and retain its personnel,
farmers, suppliers, distributors, and co-manufacturers; Vital
Farms’ ability to sustain or increase its profitability; Vital
Farms’ ability to procure sufficient high-quality eggs, cream for
its butter, and other raw materials; Vital Farms' ability to
successfully enter into new product categories; real or perceived
quality with Vital Farms’ products or other issues that adversely
affect Vital Farms’ brand and reputation; changes in the tastes and
preferences of consumers; the financial condition of, and Vital
Farms’ relationships with, its farmers, suppliers,
co-manufacturers, distributors, retailers, and foodservice
customers, as well as the health of the foodservice industry
generally; the impact of agricultural risks, including diseases
such as avian influenza; the ability of Vital Farms, its farmers,
suppliers, and its co-manufacturers to comply with food safety,
environmental or other laws or regulations; the effects of a public
health pandemic or contagious disease on Vital Farms' supply chain,
the demand for its products, and on overall economic conditions and
consumer confidence and spending levels; future investments in its
business, anticipated capital expenditures and estimates regarding
capital requirements; anticipated changes in Vital Farms’ product
offerings and Vital Farms’ ability to innovate to offer successful
new products; the costs and success of marketing efforts; Vital
Farms’ ability to effectively manage its growth and to compete
effectively with existing competitors and new market entrants; the
impact of adverse economic conditions, increased interest rates,
and inflation; the potential negative impact of Vital Farms’ focus
on a specific public benefit purpose and producing a positive
effect for society on its financial performance; seasonality; and
the growth rates of the markets in which Vital Farms competes.
These risks and uncertainties are more fully
described in Vital Farms’ filings with the Securities and Exchange
Commission (SEC), including in the sections entitled “Risk Factors”
in its Quarterly Report on Form 10-Q for the fiscal quarter ended
June 25, 2023 and other filings and reports that Vital Farms may
file from time to time with the SEC. Moreover, Vital Farms operates
in a very competitive and rapidly changing environment. New risks
emerge from time to time. It is not possible for management to
predict all risks, nor can Vital Farms assess the impact of all
factors on its business or the extent to which any factor, or
combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statements
Vital Farms may make. In light of these risks, uncertainties, and
assumptions, Vital Farms cannot guarantee future results, levels of
activity, performance, achievements, or events and circumstances
reflected in the forward-looking statements will occur.
Forward-looking statements represent management’s beliefs and
assumptions only as of the date of this press release. Vital Farms
disclaims any obligation to update forward-looking statements
except as required by law.
Media:Rob Discherrob.discher@vitalfarms.com
Investors:Matt SilerMatt.Siler@vitalfarms.com
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