Vital Farms, Inc. · NASDAQ:VITL
Vital Farms — Q3 2024 Earnings Presentation
17 slides from Vital Farms's earnings presentation, Nov 7, 2024
Slide 1: Vital Farms, Inc. November 2024 Corporate Presentation
VITAL FARMS, INC. (NASDAQ: VITL) November 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
f Lf - Bird of the Ouerte: ha Peppy Patsy welcomes the crisp air - and golden foliage brought by the changing season in her 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 375 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 Vital Farms Gross Margin Has Remained Stable Across Multiple Avian Influenza Cycles Source: Vital Farms and Cal-Maine Company Filings 8
Slide 9: Market Share Gains Continue
MARKET SHARE GAINS CONTINUE Vital Farms Dollar and Volume Share Trending Higher in 2024 Despite Widening Price Gaps Source: Egg Price Gaps from SPINS MULO and Natural Enhanced Channel, EQ Dozen ARP Market = Mulo + Natural Enhanced + WFM Calendar year 52 week ending periods for 2021, 2022, 2023, Q2 Y
Slide 10: Financial Update
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Slide 11: Financial Summary Highlights: Q3 2024 Performance Update
FINANCIAL SUMMARY HIGHLIGHTS Q3 2024 PERFORMANCE UPDATE Highlights Financial Performance • Net revenue increased 31.3% to $145.0 million ($ thousands) Q3 '24 Q3 '23 % Change $ Change in Q3 ‘24. The increase in net revenue was driven by a volume-related and price/mix Net Revenue $ 145,002 $ 110,429 3
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 Q3 ‘24 was $145.0 million, YTD 2024 and Q3 ‘24 Net Revenue Growth 2023 YTD 2024 YTD Q3 '23 Q3 '24 compared to $110.4 million for Q3 ‘23, ($ Millions) Eggs 35%
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 $16.8 million in Q3 ‘24 versus Q3 ’23, driven by greater operational 34.9% 38.6% 33.2% 36.9% 21.7% 21.9% 22.7% 24.9% scale and price
Slide 14: 2024 Guidance as of November 7, 2024
2024 GUIDANCE AS OF NOVEMBER 7, 2024 Metric Updated FY 2024 Outlook Previous FY 2024 Outlook Net Revenue Over $600 million Over $590 million Net Revenue Growth Over 27% Over 25% Adjusted EBITDA1 Over $80 million Over $75 million $30 to $40 million $35 to $45 million The Company will continue to The
Slide 15: Our Long-Term Financial Goals
OUR LONG-TERM FINANCIAL GOALS NET REVENUE $1 Billion by 2027 GROSS MARGIN ~35% ADJUSTED 12% to 14% of Net Revenue EBITDA MARGIN Note: These metrics are management goals only and are subject to a number of risks and uncertainties, including risks described in the "Risk Factors" in our Quarterly Repor
Slide 16: Appendix
APPENDIX
Slide 17: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION 39-Weeks 39-Weeks 53-Weeks 52-Weeks Ended Ended Ended Ended ($ thousands) 29-Sep-24 24-Sep-23 31-Dec-23 25-Dec-22 Net income $ 42,808 $ 18,356 $ 25,566 $ 1,230 Depreciation and amortization 9,829 7,297 10,490 5,761 Stock-based compensation expense 7,572 5,502 7,417 6,0