Vital Farms, the certified B Corporation, has reported its financial results for the third quarter ended September 29, 2024. The company's net revenue for the quarter reached $145.0 million, marking a significant increase of 31.3% compared to the same period last year when it stood at $110.4 million. This growth was driven by higher velocities on current products, new offerings, and retail distribution gains with new and current customers.
The gross margin also saw a substantial expansion, increasing by 368 basis points to 36.9% compared to 33.2% in the prior year quarter. This growth was attributed to higher net revenue, scale and price/mix benefits, operational efficiencies, and favorable conventional commodity and diesel costs, partially offset by an increase in promotions and increased investment in crew members.
The company's net income for the third quarter of 2024 was $7.4 million, compared to $4.5 million in the same quarter of 2023, while net income per diluted share reached $0.16, up from $0.10 in the prior year quarter.
Adjusted EBITDA for the third quarter of 2024 was $15.2 million, representing 10.5% of net revenue, compared to $9.3 million, or 8.4% of net revenue, in the third quarter of 2023. This growth was driven by higher sales and gross profit, partially offset by new investments in marketing and employee-related expenses.
Cash, cash equivalents, and marketable securities totaled $163.0 million as of September 29, 2024, with no outstanding debt. The net cash provided by operating activities for the 39-week period ended September 29, 2024, was $50.0 million, compared to $27.2 million for the same period in 2023. Additionally, capital expenditures amounted to $10.5 million in the 39-week period ended September 29, 2024, compared to $9.1 million in the same period in 2023.
Looking ahead, the company has raised its fiscal year 2024 outlook, now expecting a net revenue of at least $600 million, representing at least 27% growth versus fiscal year 2023. The adjusted EBITDA for the full year is expected to be at least $80 million, reflecting at least 65% growth versus fiscal year 2023. Furthermore, capital expenditures for the full year are now projected to be in the range of $30 million to $40 million.
The market has reacted to these announcements by moving the company's shares -17.3% to a price of $30.5. Check out the company's full 8-K submission here.
