In a March 7^th release, Vital Farms Inc. (VITL), a Certified B Corporation posted financial results for the 4^th quarter and FY 2023. This specialty egg producer competes directly with Eggland’s Best and other producers and distributors of USDA Certified Organic and pasture-raised products including Pete and Gerry’s, Hidden Valley and Egg Innovations. The Company experiences the same pressures of feed cost, contractor remuneration, labor and transport as competitors in a competitive and fluctuating market environment still restrained inflation.

For the 4^th Quarter of FY 2023 ending December 31^st 2021, net income was $7.2 million on revenue of $135.8 million with a diluted EPS of $0.17. 

Comparable figures for the 4^th quarter of FY 2022 ending December 25^th were net income of $1.9 million on revenue of $110.0 million with a diluted EPS of $0.04.

Sales increased 23.3 percent over the 4^th quarter of FY 2023. Gross margin was 33.2 percent for the most recent quarter (30.3 percent Q4 FY 2022). Operating margin was 6.7 percent compared to 3.1 percent in Q2 2022.  

For the FY 2023, net income was $25.6 million on revenue of $471.9 million with a diluted EPS of $0.59.  Comparable figures for FY 2022 were net income of $1.2 million on revenue of $362.1 million with a diluted EPS of $0.03.

The Company increased guidance for FY 2024 projecting revenue of $552 million, an adjusted EBITDA of $57 million and capital expenditure of $35 to $45 million.

On December 31^st 2023, VITL posted assets of $275.2 million, of which $3.9 million comprised intangibles against long-term debt and lease obligations of $17.3 million. The Company had an intraday market capitalization of $877.0 million on March 13^th. VITL trades with a forward P/E of 208 and has ranged over a 52-week period from $10.23 to $21.42 with a 50-day moving average of $16.16.  Twelve-month trailing operating margin was 8.3 percent and profit margin 5.4 percent.  Return on assets over the past twelve months was 9.1 percent with 14.6 percent on equity. At close of trading on March 7^th pre-release, VITL was priced at $19.87. Post-release on  March 8^th VITL opened at at $21.18.

Approximately 36 percent of VITL equity is held by insiders with 61 percent owned by institutions. As of February 29^th 6.1 percent of the float was short.