Business
Vital Farms Reports First Quarter 2021 Financial Results
Net Revenue for the Quarter Up 23% to $58.5 million Gross Profit of $21.3 Million for the Quarter, Gross Margin up over 300 Basis Points Year-Over-Year
About this update from Vital Farms, Inc.
[{"type":"text","content":"Net Revenue for the Quarter Up 23% to $58.5 million Gross Profit of $21.3 Million for the Quarter, Gross Margin up over 300 Basis Points Year-Over-Year Company Raises Full Year 2021 EBITDA Outlook 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. “We had a terrific start to the year, which we believe demonstrates our ability to retain consumers who are initially attracted to our products and remain loyal because of our mission, values, and commitment to stakeholders,” said Russell Diez-Canseco, President and CEO, Vital Farms. “We 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.” Diez-Canseco continued, “We are building an enduring brand, delivering on our growth strategy, and showing the world how to produce ethical food at scale. We are confident in the opportunities that remain ahead for us to reach even more households with our high-quality, pasture-raised products.” For the Three Months Ended March 28, 2021 Net revenue 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. Gross profit 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. Income from operations in the first quarter of 2021 was $3.1 million compared to $2.9 million in the first quarter of the prior year. Net income was $3.5 million in the first quarter of 2021 compared to $1.9 million in the prior year period. Net income per d...