Vital Farms Reports First Quarter 2022 Financial Results

May 05, 2022

First Quarter Net Revenue exceeds $77 million, up over 31% versus Prior Year Maintains Fiscal Year 2022 Outlook

AUSTIN, Texas, May 05, 2022 (GLOBE NEWSWIRE) -- Vital Farms (Nasdaq: VITL), a Certified B Corporation that offers a range of ethically produced foods nationwide, today reported financial results for its first quarter ended March 27, 2022.

Financial highlights for the first quarter include:

  • First Quarter 2022 Net Revenue increase of 31.6% to $77.1 million
  • First Quarter 2022 Net Loss of $1.5 million
  • First Quarter 2022 Adjusted EBITDA of $0.5 million1

“This year is off to the strong start we projected,” said Russell Diez-Canseco, Vital Farms’ President and Chief Executive Officer. “Vital Farms is the fastest-growing brand in dollars in the egg category.2 We’re delivering on our growth plans with continued gains in retail distribution and household penetration, and we are building capacity with a network of nearly 300 family farms and the expansion of Egg Central Station, which is now fully operational and positions us to double our current net revenue base in the coming years.”

Diez-Canseco continued, “Vital Farms has always been a brand that has challenged the norms of the food system. We do this through maintaining a commitment to our stakeholders—farmers and suppliers, crew members, customers and consumers, communities and the environment, and stockholders—and by building a refreshingly honest and transparent brand that evokes a sense of trust from the over 6.5 million households that choose our pasture-raised eggs. Our stakeholder commitment and transparency attract new households to Vital Farms, drive loyalty, and give us confidence in our plans to continue to grow through existing businesses and new categories.”

1 Adjusted EBITDA is a non-GAAP financial measure defined in the section titled “Non-GAAP Financial Measures” below and is reconciled to net income, its closest comparable GAAP measure, at the end of this release.
2 Source: SPINS 52 Weeks Ended 3/20/2022.

For the 13 Weeks Ended March 27, 2022

Net revenue increased 31.6% to $77.1 million in the first quarter of 2022, compared to $58.5 million in the first quarter of 2021. Growth in net revenue in the first quarter of 2022 was primarily due to continued growth in egg-related sales, driven by volume increases at our customers, as well as distribution gains at both new and existing retail partners and an increase in butter-related sales.

Gross profit was $21.7 million, or 28.2% of net revenue, in the first quarter of 2022, compared to $21.3 million in the prior year quarter. The change in gross profit was driven by higher sales offset by $1.0 million in costs related to our exit of the convenient breakfast product line. The change in gross margin was mainly attributable to an increase in input costs across both eggs and butter. Increased pricing on our organic shell eggs and across butter took effect in January, partially offsetting some of the input cost headwinds.

Loss from operations in the first quarter of 2022 was $4.1 million, compared to income from operations of $3.1 million in the first quarter of the prior year. The change in income from operations was primarily attributable to higher input costs and higher shipping and distribution expenses.

Net loss was $1.5 million in the first quarter of 2022, compared to net income of $3.5 million in the prior year quarter.

Net loss per diluted share was $0.04 for the first quarter of 2022, compared to net income per diluted share of $0.08 in the prior year quarter.

Adjusted EBITDA was $0.5 million in the first quarter of 2022, compared to Adjusted EBITDA of $4.7 million in the first quarter of 2021. The change in Adjusted EBITDA was primarily due to gross margin pressure and higher shipping and distribution expenses. Our Adjusted EBITDA excludes certain non-cash items as well as $2.3 million in costs related to the exit of our convenient breakfast product line. Adjusted EBITDA is a non-GAAP financial measure defined in the section titled “Non-GAAP Financial Measures” below and is reconciled to net income, its closest comparable GAAP measure, at the end of this release.

Balance Sheet and Cash Flow Highlights

Cash and cash equivalents and investment securities were $91.8 million as of March 27, 2022, and we had no outstanding debt. Net cash used in operating activities was $4.9 million for the 13 weeks ended March 27, 2022, compared to net cash generated of $8.5 million for the 13 weeks ended March 28, 2021.

Capital expenditures totaled $1.7 million for the 13 weeks ended March 27, 2022, compared to $3.5 million in the prior year period.

Bo Meissner, Vital Farms’ Chief Financial Officer, commented: “We remain pleased with our revenue performance and the impressive level of demand for our products. As the year progresses, we expect to continue this level of top-line momentum, while thoughtfully navigating the evolving operating cost environment.”

Update on Fiscal 2022 Outlook

  • For the full fiscal year 2022, management is maintaining its guidance for net revenue of more than $340 million, a projected increase of 30% compared to fiscal year 2021.
  • Management is also maintaining its guidance for Adjusted EBITDA of more than $13 million for the full fiscal year 2022, excluding costs related to our exit of the convenient breakfast product line, an increase of 62% compared to fiscal year 2021.

Vital Farms’ guidance continues to assume that there are no additional significant disruptions to the supply chain or its customers or consumers, including any issues from adverse macroeconomic factors. Vital Farms cannot provide a reconciliation between its forecasted Adjusted EBITDA and net revenue metrics without unreasonable effort due to the unavailability of reliable estimates for stock-based compensation among other items. These items are not within our control and may vary greatly between periods and could significantly impact future financial results.

Conference Call and Webcast Details

Vital Farms will host a conference call and webcast at 8:30 a.m. ET today to discuss the results. The live conference call can be accessed by dialing (833) 519-1345 from the U.S. or (914) 800-3907 internationally and using access code 3059376. Alternatively, participants may access the live webcast on the Vital Farms Investor Relations website at under “Events.” The webcast will be archived in 30 days.

About Vital Farms

Vital Farms is a Certified B Corporation that offers a range of ethically produced foods nationwide. Started on a single farm in Austin, Texas in 2007, Vital Farms has become a national consumer brand that works with nearly 300 family farms and is the leading U.S. brand of pasture-raised eggs by retail dollar sales. Vital Farms' ethics are exemplified by its focus on the humane treatment of farm animals and sustainable farming practices. In addition, as a Delaware public benefit corporation, Vital Farms prioritizes the long-term benefits of each of its stakeholders, including farmers and suppliers, customers and consumers, communities and the environment, crew members, and stockholders. Vital Farms' products, including shell eggs, butter, hard-boiled eggs, ghee, and liquid whole eggs, are sold in over 21,000 stores nationwide. For more information, please visit

Forward-Looking Statements

This press release and the earnings call referencing this press release contain “forward-looking” statements, as that term is defined under the federal securities laws, including but not limited to statements regarding Vital Farms’ market opportunity, anticipated growth, and future financial performance, including management’s outlook for fiscal year 2022. These forward-looking statements are based on Vital Farms’ current assumptions, expectations, and beliefs and are subject to substantial risks, uncertainties, assumptions, and changes in circumstances that may cause Vital Farms’ actual results, performance, or achievements to differ materially from those expressed or implied in any forward-looking statement. 

The risks and uncertainties referred to above include, but are not limited to: the effects of the ongoing COVID-19 pandemic on Vital Farms’ supply chain, the demand for its products, and on overall economic conditions and consumer confidence and spending levels; Vital Farms’ expectations regarding its revenue, expenses and other operating results; Vital Farms’ ability to acquire new customers, to successfully retain existing customers and to attract and retain its suppliers, distributors, and co-manufacturers; Vital Farms’ ability to sustain or increase its profitability; Vital Farms’ ability to procure sufficient high-quality eggs, cream and other raw materials; real or perceived quality with Vital Farms’ products or other issues that adversely affect Vital Farms’ brand and reputation; changes in the tastes and preferences of consumers; the financial condition of, and Vital Farms’ relationships with, its suppliers, co-manufacturers, distributors, retailers, and foodservice customers, as well as the health of the foodservice industry generally; the impact of agricultural risks, including diseases such as avian influenza; the ability of Vital Farms, its suppliers, and its co-manufacturers to comply with food safety, environmental or other laws or regulations; future investments in its business, anticipated capital expenditures and estimates regarding capital requirements; the costs and success of marketing efforts; Vital Farms’ ability to effectively manage its growth and to compete effectively with existing competitors and new market entrants; the potential negative impact of Vital Farms’ focus on a specific public benefit purpose and producing a positive effect for society on its financial performance; seasonality; and the growth rates of the markets in which Vital Farms competes. 

These risks and uncertainties are more fully described in Vital Farms’ filings with the Securities and Exchange Commission (SEC), including in the section entitled “Risk Factors” in its Annual Report on Form 10-K for the fiscal year ended December 26, 2021, and other filings and reports that Vital Farms may file from time to time with the SEC. Moreover, Vital Farms operates in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for management to predict all risks, nor can Vital Farms assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements Vital Farms may make. In light of these risks, uncertainties and assumptions, Vital Farms cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. Forward-looking statements represent management’s beliefs and assumptions only as of the date of this press release. Vital Farms disclaims any obligation to update forward-looking statements except as required by law. 


Nisha Devarajan 

Matt Siler 

(Amounts in thousands, except share amounts)
  13-Weeks Ended
  March 27, March 28,
   2022   2021 
Net revenue $77,058  $58,545 
Cost of goods sold  55,358   37,215 
Gross profit  21,700   21,330 
Operating expenses:    
Selling, general and administrative  17,624   13,183 
Shipping and distribution  8,162   5,063 
    Total operating expenses  25,786   18,246 
(Loss) income from operations  (4,086)  3,084 
Other (expense) income, net:    
Interest expense  (8)  (18)
Other income (expense), net  179   110 
    Total other income, net  171   92 
Net (loss) income before income taxes  (3,915)  3,176 
Income tax benefit  (2,377)  (304)
Net (loss) income  (1,538)  3,480 
Less: Net loss attributable to noncontrolling interests  (2)  (11)
Net (loss) income attributable to Vital Farms, Inc. common stockholders $(1,536) $3,491 
Net (loss) income per share attributable to Vital Farms, Inc. stockholders:    
Basic: $(0.04) $0.09 
Diluted: $(0.04) $0.08 
Weighted average common shares outstanding:    
Basic:  40,532,779   39,536,928 
Diluted:  40,532,779   43,509,371 

(Amounts in thousands, except share amounts)
  March 27, December 26,
   2022   2021 
Assets (Unaudited)  
Current assets:    
Cash and cash equivalents $24,774  $30,966 
Investment securities, available-for-sale  67,051   68,621 
Accounts receivable, net  25,789   26,938 
Inventories  13,336   10,945 
Prepaid expenses and other current assets  3,112   3,817 
  Total current assets  134,062   141,287 
Property, plant and equipment, net  47,294   44,608 
Operating lease right-of-use assets  2,916    
Goodwill  3,858   3,858 
Other Assets  3,131   189 
  Total assets $191,261  $189,942 
Liabilities, Redeemable Noncontrolling Interest and Stockholders’ Equity    
Current liabilities:    
Accounts payable $20,567  $22,520 
Accrued liabilities  16,142   15,143 
Operating lease liabilities  1,406    
Finance lease liabilities  210   327 
  Total current liabilities  38,325   37,990 
Operating lease liabilities, non-current  1,741    
Other liabilities  206   192 
  Total liabilities  40,272   38,182 
Commitments and contingencies (Note 15)    
Redeemable noncontrolling interest  175   175 
Stockholders’ equity:    
Common stock, $0.0001 par value per share, 310,000,000 shares         
authorized as of March 27, 2022 and December 26, 2021; 40,596,297
and 40,493,969 shares issued and outstanding as of March 27, 2022
and December 26, 2021, respectively
  5   5 
Additional paid-in capital  150,550   149,000 
Retained earnings  1,372   2,746 
Accumulated other comprehensive loss  (1,064)  (281)
  Total stockholders’ equity attributable to Vital Farms, Inc. stockholders  150,863   151,470 
Noncontrolling interests  (49)  115 
  Total stockholders’ equity $150,814  $151,585 
  Total liabilities, redeemable noncontrolling interest, and stockholders’ equity $191,261  $189,942 

(Amounts in thousands)
  13-Weeks Ended
  March 27, March 28,
   2022   2021 
Cash flows provided by operating activities:    
Net (loss) income $(1,538) $3,480 
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:    
Depreciation and amortization  948   785 
Amortization of available-for-sale debt securities  321   405 
Stock-based compensation expense  1,296   853 
Deferred Taxes  (2,579)  142 
Other  199   (536)
Changes in operating assets and liabilities:    
   Accounts receivable  1,080   2,717 
   Inventories  (2,363)  1,636 
   Prepaid expenses and other current assets  538   1,492 
   ROU Assets  413    
   Deposits and other assets  (49)   
   Income taxes payable  (112)   
   Accounts payable  (2,973)  (1,402)
   Accrued liabilities  240   (1,111)
   Operating lease liabilities  (367)   
Net cash (used in) provided by operating activities $(4,946) $8,461 
Cash flows used in investing activities:    
Purchases of property, plant and equipment  (1,686)  (3,451)
Purchases of available-for-sale debt securities  (13,973)  (14,328)
Sales of available-for-sale debt securities     1,436 
Maturities and call redemptions of available-for-sale debt securities  14,254   13,072 
Proceeds from the sale of property, plant, and equipment  50    
Net cash used in investing activities $(1,355) $(3,271)
Cash flows provided by financing activities:    
Payment of contingent consideration  (26)  (42)
Principal payments under finance lease obligations  (126)  (116)
Proceeds from exercise of stock options  254   525 
Net cash provided by financing activities $102  $367 
Net (decrease) increase in cash and cash equivalents $(6,199) $5,557 
Cash and cash equivalents at beginning of the period  30,966   29,544 
Cash and cash equivalents at end of the period $24,767  $35,101 
Supplemental disclosure of cash flow information:    
Cash paid for interest $8  $20 
Cash paid for income taxes $7  $- 
Supplemental disclosure of non-cash investing and financing activities:    
Purchases of property, plant and equipment included in accounts payable and accrued liabilities $2,147  $140 

Non-GAAP Financial Measures
We report our financial results in accordance with GAAP. However, management believes that adjusted EBITDA, a non-GAAP financial measure, provide investors with additional useful information in evaluating our performance.

Adjusted EBITDA is a financial measure that is not required by or presented in accordance with GAAP. We believe that Adjusted EBITDA, when taken together with our financial results presented in accordance with GAAP, provide meaningful supplemental information regarding our operating performance and facilitate internal comparisons of our historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, we believe that the use of Adjusted EBITDA is helpful to our investors as it is a measure used by management in assessing the health of our business, determining incentive compensation and evaluating our operating performance, as well as for internal planning and forecasting purposes.

We calculate adjusted EBITDA as net income, adjusted to exclude: (1) depreciation and amortization; (2) (benefit) or provision for income taxes as applicable; (3) stock-based compensation expense; (4) interest expense; (5) change in fair value of contingent consideration; (6) interest income; and (7) the costs related to our exit of the convenient breakfast product line. We believe the costs directly related to the convenient breakfast exit should be excluded as they are unlikely to recur.

Adjusted EBITDA is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Some of the limitations of adjusted EBITDA include that (1) it does not properly reflect capital commitments to be paid in the future, (2) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and adjusted EBITDA does not reflect these capital expenditures, (3) it does not consider the impact of stock-based compensation expense, (4) it does not reflect other non-operating expenses, including interest expense, (5) it does not consider the impact of any contingent consideration liability valuation adjustments and (6) it does not reflect tax payments that may represent a reduction in cash available to us. In addition, our use of adjusted EBITDA may not be comparable to similarly titled measures of other companies because they may not calculate adjusted EBITDA in the same manner, limiting its usefulness as a comparative measure. Because of these limitations, when evaluating our performance, you should consider adjusted EBITDA alongside other financial measures, including our net income and other results stated in accordance with GAAP.

The following table presents a reconciliation of adjusted EBITDA to net income (loss), the most directly comparable financial measure stated in accordance with GAAP, for the 13-week period presented:

(Amounts in thousands)
  13-Weeks Ended
  March 27, March 28,
   2022   2021 
Net (loss) income $(1,538) $3,480 
Depreciation and amortization  907   785 
Stock-based compensation expense  1,296   853 
Costs related to our exit of the convenient breakfast product line  2,341    
Income tax benefit  (2,377)  (304)
Interest expense  8   18 
Change in fair value of contingent consideration(1)  7   6 
Interest income  (130)  (97)
Adjusted EBITDA $514  $4,741 
1Amount reflects the change in fair value of a contingent consideration liability in connection with our 2014 acquisition of certain assets of Heartland Eggs.