Vital Farms, Inc. · NASDAQ:VITL
Vital Farms — Q1 2023 Earnings Presentation
18 slides from Vital Farms's earnings presentation, May 4, 2023
Slide 1: Vital Farms, Inc. May 2023 Corporate Presentation
VITAL FARMS, INC. (NASDAQ: VITL) May 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 | ‘her fort of greenery to see what all the fuss is about.
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 22,000 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: Industry Growth Remains Volatile
INDUSTRY GROWTH REMAINS VOLATILE
Slide 8: Inflation Has Helped Private Label and Conventional Eggs Show Sizeable Dollar Growth
INFLATION HAS HELPED PRIVATE LABEL AND CONVENTIONAL EGGS SHOW SIZEABLE DOLLAR GROWTH Last Six Months - MULO and Natural Channel Egg Dollar Sales Growth Note: Specialty eggs defined as cage free, free range and pasture-raised. ¹ Vital Farms Growth represents sales of shell eggs as reported by SPINS i
Slide 9: Vital Farms Maintains Strongly Positive Volume Growth
VITAL FARMS MAINTAINS STRONGLY POSITIVE VOLUME GROWTH Last Six Months - MULO and Natural Channel Egg Unit Sales Growth Note: Specialty eggs defined as cage free, free range and pasture-raised. ¹ Vital Farms Growth represents sales of shell eggs as reported by SPINS in the MULO and Natural channels,
Slide 10: Financial Update
FINANCIAL UPDATE
Slide 11: Financial Summary Highlights: Q1 2023 Performance Update
FINANCIAL SUMMARY HIGHLIGHTS Q1 2023 PERFORMANCE UPDATE Highlights Financial Performance • Net revenue increased 54.7% to $119.2 ($ thousands) Q1'23 Q1'22 % Change $ Change million in the first quarter of 2023, Net Revenues $ 119,172 $ 77,058 54.7% 42,114 compared to $77.1 million in the first 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 Q1 2023 was $119.2 million 2021 2022 Q1 '22 Q1 '23 compared to $77.1 million for Q1 2022. Year-Over-Year and Quarterly Net Revenue Growth Eggs 22%* 41% 33% 5
Slide 13: 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 $21.0 million in Q1 2023 compared to Q1 2022 was driven by 32% 30% 28% 36% 22% increased sales volume and pricing. 21% 23% 20%
Slide 14: 2023 Guidance
2023 GUIDANCE NET REVENUE 25% GROWTH NET REVENUES More than $450 Million ADJUSTED More than $30 Million EBITDA CAPITAL $25 to $30 Million EXPENDITURES 1See appendix for reconciliation of Adjusted EBITDA. Note: We cannot provide a reconciliation between our forecasted Adjusted EBITDA and net income,
Slide 15: Our Long-Term Financial Goals
OUR LONG-TERM FINANCIAL GOALS NET REVENUE Over 25% GROWTH GROSS MARGIN Mid-30% ADJUSTED Low Double Digit % of Net Revenues EBITDA MARGIN Note: These metrics are management goals only, and are subject to a number of risks and uncertainties, including risks described in the "Risk Factors" in our Quart
Slide 16: Appendix
APPENDIX
Slide 17: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION 13-Weeks Ended ($ thousands) 26-Mar-23 27-Mar-22 Net income (loss) $ 7,150 $ (1,538) Depreciation and amortization 2,140 907 (Benefit)/Provision for income tax 2,522 (2,377) Stock-based compensation expense 2,241 1,296 Interest expense 139 8 Change in fair value of con
Slide 18: Questions?
QUESTIONS? matt.siler@vitalfarms.com