Business
Vital Farms Reports Third Quarter 2020 Financial Results
Net Revenue Increased to $53.4 Million, up 57% Year-Over-YearGross Profit of $18.4 Million, Gross Margin up over 300 Basis Points Year-Over-YearNet Income of
About this update from Vital Farms, Inc.
[{"type":"text","content":"Net Revenue Increased to $53.4 Million, up 57% Year-Over-YearGross Profit of $18.4 Million, Gross Margin up over 300 Basis Points Year-Over-YearNet Income of $1.7 Million, Compared to $0.8 Million Last YearAdjusted EBITDA of $3.7 Million, Compared to $1.9 Million Last Year\n AUSTIN, Texas, Nov. 10, 2020 (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 third quarter ended September 27, 2020. “We are pleased to report strong third quarter results including continued growth in the number of households choosing our products and consumers making repeat purchases, both of which were driven in part by sustained at-home consumption trends as a result of COVID-19,” said Russell Diez-Canseco, President and Chief Executive Officer, Vital Farms. “Looking ahead, we remain focused on building a trusted ethical food brand and executing our growth strategy to further increase our household penetration and presence in retail as well as ongoing product innovation. Our strategy is underpinned by an unwavering commitment to prioritizing our stakeholders who have worked tirelessly throughout the pandemic including our small family farm partners, dedicated crew members, and the communities in which we operate. Vital Farms serves a robust market, and we believe our premium brand is strategic and valuable for retailers as more consumers are seeking ethically produced foods.” For the Three Months Ended September 27, 2020 Net revenue increased 57% to $53.4 million in the third quarter of 2020 compared to $34.1 million in the third quarter of 2019. Growth in net revenue in the third quarter of 2020 was driven primarily by volume increases to our distributors, including as a result of the stay-at-home trends associated with COVID-19, whereby consumers increased their purchases of eggs and butter, a higher turnover rate of sales to our retail customers, and new distribution at new and existing customers. The increase was partially offset by sales incentives offered to customers in connection with egg and butter sales. Gross profit was $18.4 million, or 34.4% of net revenue, in the third quarter of 2020, compared to $10.6 million, or 31.1% of net revenue, in the prior year period. The increases were primarily due to hig...