In a November 7^th release, Vital Farms Inc. (VITL), a Certified B Corporation posted financial results for the 3^rd quarter of FY 2024. Earnings exceeded consensus by 14 percent but revenue was consistent with estimates. This specialty egg producer competes directly with Eggland’s Best and Hidden Valley, both cooperatives and and other producers and distributors of USDA Certified Organic and pasture-raised products including the Happy Egg/Egg Innovations combination and Pete and Gerry’s. The Company experiences the same pressures of feed cost, contractor remuneration, labor and transport as competitors in a fluctuating market environment less restrained by consumer concern over inflation.

For Q3 FY 2024 ending September 24^th 2024, net income was $7.5 million on revenue of $145.0 million with a diluted EPS of $0.17.  Comparable figures for Q3 2023 ending September 29^th were net income of $4.5 million on revenue of $110.4 million with a diluted EPS of $0.11.

Revenue increased 31.3 percent over Q3 2023. Gross margin was 36.9 percent for the most recent quarter (35.2 percent Q3 FY 2023). Operating margin was 6.4 percent (4.7 percent in Q3 2023)

In commenting on Q2 results Russell Diez-Canseco, president and CEO expressed appreciation to employees and the approximately 375 contractors. He confirmed that plans for the second packing plant in Seymour, IN. were in an advanced state.

The Company increased guidance for FY 2024 above the August Q2 2024 report, now projecting revenue of $600 million, (was $590 million) an adjusted EBITDA of $80 million (was $75 million) with reduced capital expenditure of $30 to $40 million due to extended scheduling of projects.

On September 29^th 2023, VITL posted assets of $344.6 million, of which $6.5 million comprised intangibles against long-term debt and lease obligations of $12.7 million. The Company had an intraday market capitalization of $1,590 million on November 7^th compared to $653 million on November 7^th 2023. VITL trades with a forward P/E of 208 and has ranged over a 52-week period from $11.55 to $48.41 with a 50-day moving average of $34.99.  Twelve-month trailing operating margin was 11.6 percent and profit margin 8.7 percent.  Return on assets over the past twelve months was 12.5 percent with a 22.7 percent return on equity.

At close of trading on November 6^th pre-release, VITL was priced at $36.87. Post-release on November 7^th VITL opened at $34.52, subsequently closing at $31.30.

Approximately 35 percent of VITL equity is held by insiders with 77 percent owned by institutions. As of October 15^th 33.5 percent of the float was short.