Vital Farms, Inc. · NASDAQ:VITL
Vital Farms — Q2 2024 Earnings Presentation
18 slides from Vital Farms's earnings presentation, Aug 8, 2024
Slide 1: Vital Farms, Inc. August 2024 Corporate Presentation
VITAL FARMS, INC. (NASDAQ: VITL) August 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
atl y Bird of the Quarter t 4 / ul i Ambitious Avery looks forward to a full ‘day of exploring and foraging in her - abundant pasture.
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 each Y & ENVIR ERS & CONS IT M 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 350 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 Gross Margin Continues to Improve due to Scale Benefits and Favorable Commodity Cost Trends 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 Trending Higher Despite Widening Price Gaps 5 $4.84 $4.82 $4.94 10.00% 5 $4.01 8.0% 8.2% 4 8.00% $3.51 6.6% 4 5.4% 5.2% 6.00% 3 3.9% 3.9% 3 3.0% 3.2% 4.00% 2 2.3% $2.18 $2.19 2 $1.90 2.00% 1 $1.17 $1.27 0.00% 1 0 -2.00% 2021 2022 20
Slide 10: Financial Update
\ Tae PS ee aR s i IAL UP 7. x EST. 2007 \\
Slide 11: Financial Summary Highlights: Q2 2024 Performance Update
FINANCIAL SUMMARY HIGHLIGHTS Q2 2024 PERFORMANCE UPDATE Highlights Financial Performance • Net revenue increased 38.5% to $147.4 million ($ thousands) Q2 '24 Q2 '23 % Change $ Change in Q2 ‘24. The increase in net revenue was primarily driven by volume-related increases Net Revenue $ 147,388 $ 106,4
Slide 12: Financial Summary Highlights: Net Revenue Growth
FINANCIAL SUMMARY HIGHLIGHTS NET REVENUE GROWTH Net Revenue Summary Net Revenue by Product Segment Highlights Growth Rates • Net revenue for Q2 ‘24 was $147.4 million, YTD 2024 and Q2 ‘24 Net Revenue Growth 2023 YTD 2024 YTD Q2 '23 Q2 '24 compared to $106.4 million for Q2 ‘23, ($ Thousands) represen
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 Revenue • Gross profit increased $19.9 million in Q2 ‘24 versus Q2 ’23, driven by greater operational 35.7% 39.5% 35.5% 39.1% 21.2% 20.5% 22.5% 22.6% scale and egg p
Slide 14: 2024 Guidance as of August 8, 2024
2024 GUIDANCE AS OF AUGUST 8, 2024 Metric Updated FY 2024 Outlook Previous FY 2024 Outlook Net Revenue Over $590 million Over $575 million Net Revenue Growth Over 25% Over 22% Adjusted EBITDA1 Over $75 million Over $70 million $35 to $45 million $35 to $45 million The Company will continue to The Co
Slide 15: Our Long-Term Financial Goals
OUR LONG-TERM FINANCIAL GOALS NET REVENUE $1 Billion by 2027 GROSS MARGIN ~35% ADJUSTED 12% to 14% of Net Revenue EBITDA MARGIN Note: These metrics are management goals only and are subject to a number of risks and uncertainties, including risks described in the "Risk Factors" in our Quarterly Repor
Slide 16: Appendix
APPENDIX
Slide 17: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION 26-Weeks 26-Weeks 53-Weeks 52-Weeks Ended Ended Ended Ended ($ thousands) 30-Jun-24 25-Jun-23 31-Dec-23 25-Dec-22 Net income $ 16,339 $ 6,683 $ 25,566 $ 1,230 Depreciation and amortization 3,288 2,297 10,490 5,761 Stock-based compensation expense 2,916 1,446 7,417 6,04
Slide 18: Questions?
QUESTIONS? investors@vitalfarms.com