Vital Farms (VITL) Q4 & FY 2024 Earnings: Strong Growth & Optimistic Outlook for 2025
- Hardik Shah
- Feb 27
- 3 min read
Updated: Feb 27
TL;DR
Financial Performance: FY 2024 revenue surged 28.5% to $606.3M, net income more than doubled to $53.4M, and adjusted EBITDA grew 79% to $86.7M.
Market & Operational Trends: Expansion to over 425 family farms, strong consumer demand despite industry-wide egg shortages, and resilience against avian influenza.
Future Growth Drivers: Supply chain investments, new egg washing facility, strategic hiring, and a reinforced brand presence driving 2025 guidance of $740M revenue and $100M adjusted EBITDA.
Financial Results
Vital Farms (Nasdaq: VITL) delivered strong financial results in Q4 and FY 2024, reinforcing its position as a leading pasture-raised food company.
Vital Farms Earnings Q4 2024:
Net revenue grew 22.2% YoY to $166M (30% growth on a like-for-like basis).
Gross margin expanded 280 basis points to 36.1%.
Net income surged 46.8% to $10.6M, with diluted EPS of $0.23.
Adjusted EBITDA reached $19.1M, up from $13.9M.
FY 2024 Highlights:
Revenue climbed 28.5% to $606.3M.
Net income doubled to $53.4M, with EPS at $1.18.
Adjusted EBITDA jumped 79% to $86.7M.
Cash reserves grew to $160.3M with no outstanding debt.
"2024 was an outstanding year for Vital Farms. We exceeded $600 million in net revenue, keeping us well on track to deliver our $1 billion sales target by 2027," said CEO Russell Diez-Canseco.
Operational Performance
Industry & Market Trends
The egg industry faced supply constraints due to avian influenza outbreaks, with nearly 40 million egg-laying hens lost in 2024.
Strong consumer demand helped drive sales, despite industry-wide shortages.
Retail distribution for eggs expanded, contributing to higher velocities and stronger brand penetration.
Key Business Milestones
The company expanded its network, adding 125 new family farms, bringing the total to over 425 farms.
A new egg washing and packing facility is set to launch in 2025, increasing production capacity.
The butter segment rebounded, with 11% sales growth and renewed momentum.
Challenges & Risks
Supply chain constraints are expected to persist in early 2025 but should ease in the second half.
Higher input costs for commodities like corn could impact gross margins in early 2025.
Egg shortages nationwide could pose challenges in meeting demand, though the company remains resilient.
Strategic Initiatives
Investments in Growth & Supply Chain
New production facility: Expected to significantly expand capacity by late 2025.
Supply chain expansion: A new egg grading line at Egg Central Station will increase capacity by 30% by year-end.
Accelerator farms: The company is rolling out its first company-owned farms to enhance best practices in ethical farming.
Brand & Marketing Efforts
The new "Good Eggs. No Shortcuts." campaign highlights Vital Farms’ commitment to ethical farming.
Household penetration grew to 10.7%, adding 2.3 million new customers.
A 12% YoY increase in buy rate per customer indicates strong consumer loyalty.
The Bottom Line
Vital Farms is proving that ethical food can be big business.
For consumers, expect continued tight egg supply early in 2025, but relief as production ramps up. Founders can learn from its smart branding, sustainable scaling, and supply chain investments, while investors should note its strong growth trajectory, financial resilience, and $1B revenue target by 2027.
With rising brand loyalty, expanding farm partnerships, and strategic infrastructure upgrades, Vital Farms is positioned for sustained success.
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