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Pasture-Raised Egg Producer Reports Record Fourth Quarter Revenue

Shares in ethically-raised egg producer Vital Farms Inc. traded up 9% after the company released financial results for Q4/21 and FY21 that included a 43.4% increase % YoY of Q4/21 Net Sales.

Vital Farms Inc. (VITL: NASDAQ), a family-owned pasture-based products company, which offers a wide range of ethically produced foods and is today the largest producer of pastured eggs in the United States in retail terms. announcement financial results for the fourth quarter and fiscal year 2021 ended December 26, 2021.

Vital Farms noted that Q4/21 net revenue increased 43.4% year-over-year to a record $77.4 million from $54.0 million in Q4/20 .

The company said most of the growth in Q4/21 was due to continued growth in egg-related sales as well as an increase in butter-related sales.

The company said that in Q4/21 it recorded a net loss of $3.6 million or a loss of $0.09 per diluted share, compared to a net loss of $0.8 million or a loss. of $0.02 per diluted share in Q4/20.

For FY/21, the company reported that net revenue increased 21.8% to $260.9 million from $214.3 million during FY/20.

Vital Farms said that for fiscal 2021, it had net income of $2.4 million and adjusted EBITDA of $8.0 million, compared to $8.0 million and $16.8 million. , respectively, in fiscal year 2020.

Company President and CEO Russell Diez-Canseco said, “2021 has been an excellent year for revenue growth at Vital Farms, and I want to thank our stakeholders, including our team members, farmers, suppliers, customers and consumers, for their role in enabling us to achieve a strong performance in the fourth quarter, achieving our highest net sales in a single quarter thanks to continued and robust demand for our products. In addition, our 12-unit pasture-raised eggs were the top-selling branded egg in the United States during the fourth quarter. »

“Much of this growth is driven by thoughtful and disciplined marketing investments at every stage of the consumer journey and our resilient supply chain, which now includes more than 275 family farms, passionate and committed crew members , as well as an expanded egg washing and packing facility that will be operational in a few months,” added Diez-Canseco.

The company said it is well capitalized and reported that as of December 26, 2021, it had cash and other liquid assets of $99.6 million and no outstanding debt on its balance sheet.

The company noted that in FY21, it increased capital expenditures by $6.4 million, primarily to expand its Central Egg Station facilities, which will allow the company to double its production capacity in FY22.

Vital Farms Chief Financial Officer Bo Meissner said, “We are pleased with our record fourth quarter sales and strong consumer demand. reflected in our initial net sales and adjusted EBITDA guidance.”

The company offered guidance and said that for FY22, it expects net revenue to grow 30% from FY21 levels to more than $340 million.

The company added that it estimates adjusted EBITDA for FY22 will be more than $13 million, representing an expected 62% increase from FY21.

Vital Farms is based in Austin, Texas and is a national supplier of ethically produced animal products sourced from more than 275 small family farms. The company claimed it was “the leading American pastured egg brand by retail dollar sales.” The company is very concerned about the use of sustainable agricultural practices and the humane treatment of farm animals. The company sells its products, including shell eggs, hard-boiled eggs, egg bites, liquid whole eggs, butter and clarified ghee butter in more than 20,900 stores in the United States.

Vital Farms started the day with a market cap of approximately $487.7 million with approximately 40.3 million shares outstanding and a short stake of approximately 7.1%. Shares of VITL opened 7% higher today at $12.95 (+$0.85, +7.02%) from yesterday’s closing price of $12.10. The stock traded today between $12.79 and $13.8395 per share and is currently trading at $13.20 (+$1.10, +9.09%).

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