Vital Farms reported a net income of US$25.6 million for its fiscal 2023, a 2033% increase compared to fiscal 2022, due to improved sales and gross profit.
Vital also reported a net revenue increase of 30.3% to US$471.9 million over the same period. Excluding the extra week in its fiscal 2023, the producer’s net revenue increased 28%. However, Vital’s shell egg business saw increased pricing that was offset by higher input and packaging costs.
“We ended 2023 with our strongest ever quarter for net revenue, expanded distribution through new and existing retailers and built more trusted relationships with our consumers. We’re well positioned for a big year ahead and on track to be a $1 billion business by 2027,” stated Vital Farms’ President and CEO Russell Diez-Canseco.
Vital’s income from operations in fiscal year 2023 was US$33.3 million, compared to US$2.1 million in fiscal 2022. The change was attributable to higher sales and gross profit but was offset by marketing costs and increased employee expenses.
The fourth quarter of fiscal 2023
For the fourth quarter of fiscal 2023, the egg producer saw a net income of US$7.2 million, compared to US$1.9 million in the same period the previous year, and a net revenue increase of 23.4% to $135.8 million. Excluding the extra week in the fourth quarter, Vital’s net revenue increased 15.7%. The net revenue growth was attributed to higher prices and volume increases.
Gross profit for the quarter was 33.3% of net revenue, or US$45.2 million, compared to 30.3% in the prior year quarter. The growth in Vital’s gross margin was mostly driven by volume increases and pricing increases across its shell egg business. Price increases offset an increase in its shell egg input costs.
Net income for the quarter was US$7.2 million compared to US$1.9 million in the same quarter in 2022. The increase in net income was driven by higher sales and a better gross profit performance.
