Vital Farms, Inc. · NASDAQ:VITL
Vital Farms — Q2 2023 Earnings Presentation
19 slides from Vital Farms's earnings presentation, Aug 3, 2023
Slide 1: Vital Farms, Inc. August 2023 Corporate Presentation
VITAL FARMS, INC. (NASDAQ: VITL) August 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 | on Heartwarming Henrietta loves to “start each day with with a leisurely "stroll in the sunshine.
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 approximately 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
Slide 7: Supplemental Charts
SUPPLEMENTAL CHARTS
Slide 8: U.S. Laying Flock Has Returned to a Level Close to the 5-Year Average
U.S. LAYING FLOCK HAS RETURNED TO A LEVEL CLOSE TO THE 5-YEAR AVERAGE U.S. Table Egg Layers (in Millions) Source: Urner Barry, USDA Table Egg Layers: First Day of the Month, U.S. 8
Slide 9: Retail Distribution Continues to Climb
RETAIL DISTRIBUTION CONTINUES TO CLIMB Vital Farms Store Count Up Over 10% versus Last Year Source: MULO, Natural Channel and Whole Foods; SPINS and Whole Foods Nielsen Data, latest 4-week period ending 25-June-2023 9
Slide 10: Pasture Raised Eggs Continue to Gain Dollar Share
PASTURE RAISED EGGS CONTINUE TO GAIN DOLLAR SHARE Dollar Share of Eggs by Type Source: MULO, Natural Channel and Whole Foods; SPINS and Whole Foods Nielsen Data, latest 13-week period ending 25-June-2023 10
Slide 11: Financial Update
FINANCIAL UPDATE
Slide 12: Financial Summary Highlights: Q2 2023 Performance Update
FINANCIAL SUMMARY HIGHLIGHTS Q2 2023 PERFORMANCE UPDATE Highlights Financial Performance ($ thousands) Q2'23 Q2'22 % Change $ Change • Net revenue increased 28.4% to $106.4 million in the second quarter of 2023, Net Revenues $ 106,445 $ 82,870 28.4% 23,575 compared to $82.9 million in the second qua
Slide 13: 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 Q2 2023 was $106.4 million Year-Over-Year and Quarterly Net Revenue Growth 2022 YTD 2023 YTD Q2 '22 Q2 '23 compared to $82.9 million for Q2 2022. ($ Thousand
Slide 14: Financial Summary Highlights: Margin Profile
FINANCIAL SUMMARY HIGHLIGHTS MARGIN PROFILE Gross Profit and Margin Operating Expenses Highlights Gross Margins SG&A as a % of Net Revenues • The increase in gross profit of $12.9 million in Q2 2023 compared to Q2 2022 was driven by 29% 36% 30% 36% 22% increased pricing and sales volume. 21% 21% 22%
Slide 15: Updated 2023 Guidance
UPDATED 2023 GUIDANCE NET REVENUE Over 28% GROWTH NET REVENUES More than $465 Million ADJUSTED More than $35 Million EBITDA1 CAPITAL $16 to $21 Million EXPENDITURES 1See appendix for reconciliation of Adjusted EBITDA. Note: We cannot provide a reconciliation between our forecasted Adjusted EBITDA an
Slide 16: Our Long-Term Financial Goals
OUR LONG-TERM FINANCIAL GOALS NET REVENUE Over 25% GROWTH GROSS MARGIN Mid-30% ADJUSTED Low Double Digit % of Net Revenues EBITDA MARGIN Note: These metrics are management goals only and are subject to a number of risks and uncertainties, including risks described in the "Risk Factors" in our Quarte
Slide 17: Appendix
APPENDIX
Slide 18: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION 13-Weeks Ended ($ thousands) 25-Jun-23 26-Jun-22 Net income $ 6,683 $ 192 Depreciation and amortization 2,297 1,339 Provision for income tax 1,229 680 Stock-based compensation expense 1,446 1,633 Interest expense 136 7 Change in fair value of contingent consideration (
Slide 19: Questions?
QUESTIONS? matt.siler@vitalfarms.com