Q2 2024 Vital Farms Inc Earnings Call Transcript
Key Points
- Vital Farms Inc (VITL) reported record second-quarter net revenue of $147.4 million, up 38.5% year-over-year.
- The company achieved a strong gross margin improvement of 362 basis points to 39.1% in the quarter.
- Adjusted EBITDA more than doubled to $23.3 million, reflecting a 105% increase compared to the second quarter of 2023.
- Vital Farms Inc (VITL) expanded its farm network to over 350 family farms, supporting future growth.
- The company announced plans for a new egg washing and processing facility in Seymour, Indiana, expected to create at least 150 jobs and support additional revenue growth.
- SG&A expenses increased to $33.3 million, driven by higher professional service expenses, employee-related costs, and marketing expenses.
- Shipping and distribution costs rose in absolute terms, although they declined as a percentage of sales.
- The company anticipates elevated capital expenditures in the coming years due to the construction of the new Seymour facility.
- There is an expected step down in adjusted EBITDA margin in the second half of the year due to increased marketing investments.
- The butter business faced challenges, with overall sales down due to the discontinuation of a product line, although recovery is expected in the second half.
Thank you for standing by. My name is Kathleen, and I will be your conference operator today. At this time, I would like to welcome everyone to the Vital Farms Incorporated second-quarter 2024 earnings conference call. (Operator Instructions) Thank you.
And now I would like to turn the call over to Anthony Bucalo, Vice President of Investor Relations. Please go ahead.
Good morning, and welcome to Vital Farms second-quarter 2024 earnings conference call and webcast. I am Tony Bucalo, VP of Investor Relations. And I'm joined in the call today by Russell Diez-Canseco, President and Chief Executive Officer; and Thilo Wrede, Chief Financial Officer. By now, everyone should have access to the company's second-quarter 2024 earnings press release issued this morning. This is available on the Investor Relations section of Vital Farms website at investors.vitalfarms.com.
Throughout this call, management may make forward-looking statements within the meaning of federal securities
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