Vital Farms, Inc. · NASDAQ:VITL
Vital Farms — Q1 2024 Earnings Presentation
18 slides from Vital Farms's earnings presentation, May 9, 2024
Slide 1: Vital Farms, Inc. May 2024 Corporate Presentation
VITAL FARMS, INC. (NASDAQ: VITL) May 2024 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 | Spry Suzy dances through the crunchy grass and lets the soft breeze ruffle her feathers.
Slide 4: Our Values Are Rooted in Conscious Capitalism
OUR VALUES ARE ROOTED IN CONSCIOUS CAPITALISM KHOLDER OC ST S We operate a STAKEHOLDER MODEL That prioritizes the long-term benefits of Y & ENVIR ERS & CONS IT M each of our stakeholders N UM ON CUSTO COMMU ERS MENT Our approach has been validated by our designation as a CERTIFIED B CORPORATION, RS
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 ~24,000 Retail Stores) WE DELIVER WE EGG CENTRAL DIRECTLY TO AGGREGATE ECS PRODUCTS STATION CUSTOMERS Wash Springfield, MO AND THROUGH RETAIL FROM FARM Grade PACK, WASH, GRADE, DI
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 Vital Farms Egg Dollar and Volume Share Moving Higher Despite Price Gaps Widening 5 $4.87 $4.82 10.00% 5 $3.99 8.0% 4 8.00% $3.48 6.6% 4 5.4% 5.2% 6.00% 3 3 3.9% 3.0% 3.2% 4.00% 2 2.3% $2.18 2 $1.91 2.00% 1 $1.16 $1.30 0.00% 1 0 -2.00% 2021 2022 2023 Q1 2024 Premium Peer
Slide 10: Financial Update
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Slide 11: Financial Summary Highlights: Q1 2024 Performance Update
FINANCIAL SUMMARY HIGHLIGHTS Q1 2024 PERFORMANCE UPDATE Highlights Financial Performance • Net revenue increased 24.1% to $147.9 ($ thousands) Q1'24 Q1'23 % Change $ Change million in Q1 ‘24. Net revenue growth was Net Revenues $ 147,929 $ 119,172 24.1% 28,757 driven by price/mix and a volume gain o
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 Q1 ‘24 was $147.9 million 2023 and Q1 ‘24 Net Revenue Growth 2022 FY 2023 FY Q1 '23 Q1 '24 compared to $119.2 million for Q1 ‘23, ($ Thousands) Eggs 41% 32%
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 • Gross profit increased $16.3 million in Q1 ‘24 versus Q1 ’23, driven by price/mix benefits, 30% 34% 36% 40% 21% enhanced operational efficiencies, and 22%
Slide 14: 2024 Guidance as of May 9, 2024
2024 GUIDANCE AS OF MAY 9, 2024 Metric Prior FY 2024 Outlook Updated FY 2024 Outlook Net Revenues Over $552 million Over $575 million Net Revenue Growth Over 17% Over 22% Adjusted EBITDA1 Over $57 million Over $70 million $35 to $45 million $35 to $45 million The Company will continue to The Company
Slide 15: Our Long-Term Financial Goals
OUR LONG-TERM FINANCIAL GOALS NET REVENUE $1 Billion by 2027 GROSS MARGIN ~35% ADJUSTED 12% to 14% of Net Revenues EBITDA MARGIN Note: These metrics are management goals only and are subject to a number of risks and uncertainties, including risks described in the "Risk Factors" in our Quarterly Repo
Slide 16: Appendix
APPENDIX
Slide 17: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION 13-Weeks 13-Weeks Ended Ended ($ thousands) 31-Mar-24 26-Mar-23 Net income $ 19,023 $ 7,150 Depreciation and amortization 3,211 2,140 Stock-based compensation expense 1,982 2,241 Provision for income tax 5,702 2,522 Interest expense 255 139 Interest income (1,088) (340
Slide 18: Questions?
QUESTIONS? investors@vitalfarms.com