Vital Farms, Inc. · NASDAQ:VITL
Vital Farms — Q3 2023 Earnings Presentation
18 slides from Vital Farms's earnings presentation, Nov 2, 2023
Slide 1: Vital Farms, Inc. November 2023 Corporate Presentation
VITAL FARMS, INC. (NASDAQ: VITL) November 2023 Corporate Presentation
Slide 2: Reporting Disclaimer
REPORTING DISCLAIMER This presentation contains, in addition to historical information, certain forward-looking statements, as defined in Private Securities Litigation Reform Act of 1995, that are based on our current assumptions, expectations and projections about future performance and events and
Slide 3: Bird of the Quarter
Bird of the Quarter ~ Sublime Summer munches on ~ her final snack of the day before watching the sun set over the hills,
Slide 4: Our Values Are Rooted in Conscious Capitalism
OUR VALUES ARE ROOTED IN CONSCIOUS CAPITALISM We operate a STAKEHOLDER MODEL That prioritizes the long-term benefits of each of our stakeholders Our approach has been validated by our designation as a CERTIFIED B CORPORATION, a certification reserved for businesses that balance profit and purpose to
Slide 5: We Have Developed an Alternative to Factory Farming Practices
WE HAVE DEVELOPED AN ALTERNATIVE TO FACTORY FARMING PRACTICES Year-Round Production Our Framework LIVING OPEN AIR, 108 SQUARE CONDITIONS FEET PER HEN OMNIVOROUS, FEED INCLUDING GRAIN, PLANTS, INSECTS LAND SUSTAINABLE PRACTICES MANAGEMENT DIRECT RELATIONSHIPS NETWORK WITH FAMILY FARMS 5
Slide 6: Our Model Allows Us to Deliver Quality at Scale
OUR MODEL ALLOWS US TO DELIVER QUALITY AT SCALE Network of more than National Distribution 300 Family Farms (Products in over 24,000 Retail Stores) WE DELIVER WE EGG CENTRAL DIRECTLY TO AGGREGATE ECS STATION CUSTOMERS PRODUCTS Wash Springfield, MO AND THROUGH RETAIL FROM FARM NETWORK Grade PACK, WAS
Slide 7: Supplemental Charts
SUPPLEMENTAL CHARTS
Slide 8: Benefits of a Brand: Gross Margin Stability
BENEFITS OF A BRAND: GROSS MARGIN STABILITY Less Volatile Gross Margin Post Latest Avian Influenza Outbreak Source: Vital Farms and Cal-Maine Company Filings 8
Slide 9: Market Share Gains Continue
MARKET SHARE GAINS CONTINUE Dollar and Volume Share Moving Higher Despite Price Gaps Widening Source: Price Gaps from SPINS MULO and Natural latest 12 weeks ended 10-Sep-2023, latest 24 weeks ended 26-Jun-2023; Market Share from SPINS MULO and Natural, Whole Foods, latest 13 weeks ended 24-Sep-2023,
Slide 10: Financial Update
FINANCIAL UPDATE
Slide 11: Financial Summary Highlights: Q3 2023 Performance Update
FINANCIAL SUMMARY HIGHLIGHTS Q3 2023 PERFORMANCE UPDATE Highlights Financial Performance • Net revenue increased 20.0% to $110.4 ($ thousands) Q3'23 Q3'22 % Change $ Change million in the third quarter of 2023, Net Revenues $ 110,429 $ 92,040 20.0% 18,389 compared to $92.0 million in the third quart
Slide 12: Financial Summary Highlights: Net Revenue Growth
FINANCIAL SUMMARY HIGHLIGHTS NET REVENUE GROWTH Net Revenues Summary Net Revenues by Product Segment Highlights Growth Rates • Net revenue for Q3 2023 was $110.4 million YTD and Q3 2023 Net Revenue Growth 2022 YTD 2023 YTD Q3 '22 Q3 '23 compared to $92.0 million for Q3 2022. ($ Thousands) Eggs 39% 3
Slide 13: Financial Summary Highlights: Margin Performance
FINANCIAL SUMMARY HIGHLIGHTS MARGIN PERFORMANCE Gross Profit and Margin Operating Expenses Highlights Gross Margins SG&A as a % of Net Revenues • The increase in gross profit of $7.2 million in Q3 2023 compared to Q3 2022 was driven by 30% 35% 32% 34% 22% increased pricing and sales volume. 22% 22%
Slide 14: Updated 2023 Guidance
UPDATED 2023 GUIDANCE NET REVENUE Over 28% GROWTH NET REVENUES More than $465 Million ADJUSTED More than $40 Million EBITDA1 CAPITAL $11 to $16 Million EXPENDITURES 1See appendix for reconciliation of Adjusted EBITDA. Note: We cannot provide a reconciliation between our forecasted Adjusted EBITDA an
Slide 15: Our Long-Term Financial Goals
OUR LONG-TERM FINANCIAL GOALS NET REVENUE $1 Billion by 2027 GROSS MARGIN ~35% ADJUSTED 12% to 14% of Net Revenues EBITDA MARGIN Note: These metrics are management goals only and are subject to a number of risks and uncertainties, including risks described in the "Risk Factors" in our Quarterly Repo
Slide 16: Appendix
APPENDIX
Slide 17: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION 13-Weeks Ended 39-Weeks Ended ($ thousands) 24-Sep-23 25-Sep-22 24-Sep-23 25-Sep-22 Net income $ 4,523 $ 711 $ 18,356 $ (635) Depreciation and amortization 2,860 1,646 7,297 3,892 Provision for income tax 533 1,465 4,284 (232) Stock-based compensation expense 1,815 1,5
Slide 18: Questions?
QUESTIONS? matt.siler@vitalfarms.com