{"id":491015,"date":"2021-05-11T07:23:18","date_gmt":"2021-05-11T11:23:18","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/vital-farms-reports-first-quarter-2021-financial-results\/"},"modified":"2021-05-11T07:23:18","modified_gmt":"2021-05-11T11:23:18","slug":"vital-farms-reports-first-quarter-2021-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/vital-farms-reports-first-quarter-2021-financial-results\/","title":{"rendered":"Vital Farms Reports First Quarter 2021 Financial Results"},"content":{"rendered":"
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\n Net Revenue for the Quarter Up 23% to $58.5 million<\/em>
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\n Gross Profit of $21.3 Million for the Quarter, Gross Margin up over 300 Basis Points Year-Over-Year<\/em>\n <\/p>\n

\n Company Raises Full Year 2021 EBITDA Outlook<\/em>\n <\/p>\n

AUSTIN, Texas, May 11, 2021 (GLOBE NEWSWIRE) — Vital Farms (Nasdaq: VITL), a Certified B Corporation that offers a range of ethically produced pasture-raised foods nationwide, today reported financial results for its first quarter ended March 28, 2021.<\/p>\n

\u201cWe had a terrific start to the year, which we believe demonstrates\u00a0our\u00a0ability to retain consumers who are initially attracted to our\u00a0products\u00a0and remain loyal because of our mission, values,\u00a0and commitment to stakeholders,\u201d\u00a0said Russell\u202fDiez-Canseco, President and CEO, Vital Farms.\u00a0\u201cWe saw solid growth in both retail distribution, which increased 13% year over year, to over 16,500 stores at the end of the first quarter, and household penetration for our pasture-raised eggs, which now stands at 4.1%, up 120 basis points over that same time period.\u201d\u00a0<\/p>\n

Diez-Canseco continued, \u201cWe are\u00a0building an enduring brand,\u00a0delivering on our growth strategy,\u00a0and\u00a0showing the world how to produce ethical food at scale.\u00a0We are confident in the opportunities that remain ahead for us to reach even more households with our high-quality, pasture-raised products.\u201d\u00a0<\/p>\n

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\n For the Three Months Ended March 28, 2021<\/u>
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\n Net revenue <\/strong>increased 23% to $58.5 million in the first quarter of 2021 compared to $47.6 million in the first quarter of 2020. Growth in net revenue in the first quarter of 2021 was driven primarily by volume increases to our distributors and retail partners, and distribution gains in new and existing customers.<\/p>\n

\n Gross profit<\/strong> was $21.3 million, or 36.4% of net revenue, in the first quarter of 2021, compared to $15.9 million, or 33.3% of net revenue, in the prior year period. The increase in gross margin was driven by improved offsize egg utilization, lower material costs on butter, and volume leverage over direct labor and overhead costs. These benefits were partially offset by higher promotional spending and increased material costs on conventional eggs.<\/p>\n

\n Income from operations<\/strong> in the first quarter of 2021 was $3.1 million compared to $2.9 million in the first quarter of the prior year.<\/p>\n

\n Net income <\/strong>was $3.5 million in the first quarter of 2021 compared to $1.9 million in the prior year period.<\/p>\n

\n Net income per diluted share <\/strong>was $0.08 compared to $0.05 per diluted share in the prior year quarter.<\/p>\n

\n Adjusted EBITDA <\/strong>was $4.7 million in the first quarter of 2021 compared to $3.8 million in the first quarter of 2020, primarily driven by volume increases to Vital Farms\u2019 distributors and retail customers, expanded gross margin, and leverage over fixed operating costs. The increase was partially offset by higher selling, general and administrative expenses due to public company costs, as well as higher employee-related costs driven by increased headcount, and slightly higher marketing expenses. Adjusted EBITDA is a non-GAAP financial measure defined under \u201cNon-GAAP Financial Measures,\u201d and is reconciled to net income, its closest comparable GAAP measure, at the end of this release.<\/p>\n

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\n Balance Sheet and Cash Flow Highlights<\/u>
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\n Cash, cash equivalents and investment securities<\/strong> were $102.9 million as of March 28, 2021, and Vital Farms had no current or long-term debt outstanding as of March 28, 2021. Net cash provided by operating activities was $8.0 million in the first quarter ended March 28, 2021, compared to $0.8 million net cash provided by operating activities during the prior year period.<\/p>\n

\n Capital expenditures<\/strong> totaled $3.5 million for the first quarter ended March 28, 2021 compared to $4.3 million in the prior year period.<\/p>\n

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\n Update on Fiscal 2021 Outlook<\/u>
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Vital Farms\u2019 guidance continues to assume that there are no additional, significant disruptions to the supply chain, its customers or consumers, including any issues from adverse macroeconomic factors.<\/p>\n