Vital Farms Reports 28% Revenue Growth to $606.3 Million in Fiscal Year 2024

Vital Farms, Inc. reported significant financial growth in its fiscal year ending December 29, 2024, with net revenue reaching $606.3 million, a 28% increase from $471.9 million in the previous year. The company’s net income also rose to $53.4 million, compared to $25.6 million in fiscal 2023, reflecting a net income margin of 9%. This growth was primarily driven by volume increases of $103 million and price-related increases of $31.5 million, despite the impact of a shorter fiscal year, as 2024 was a 52-week year compared to the 53 weeks in 2023.

The company has made strategic investments to enhance its operational capacity, including the expansion of its Egg Central Station facility in Missouri, which is capable of processing six million eggs per day. In 2024, Vital Farms announced plans for a second egg washing and packing facility in Seymour, Indiana, expected to be operational by 2027. Additionally, the company plans to install a new Moba egg grading system at its existing facility, further increasing efficiency. As of December 2024, Vital Farms had approximately 598 full-time employees, reflecting a commitment to scaling its workforce in line with growth.

Vital Farms has also expanded its market presence, with its products now available in approximately 24,000 stores across the United States, reaching nearly 14 million households. The company holds a significant market share in the pasture-raised egg segment, commanding over 54% of the U.S. market. The brand's strong consumer loyalty is evidenced by its high velocities and profitability per unit compared to competitors. The company’s marketing efforts, including its Vital Times newsletter and social media engagement, have been pivotal in building brand awareness and consumer trust.

Despite the positive financial performance, the company identified a material weakness in its internal control over financial reporting, particularly in the revenue process. This weakness was attributed to insufficient trained resources and ineffective risk assessment. Management is actively working on a remediation plan, which includes hiring additional personnel and enhancing risk assessment processes. The company’s independent auditors, KPMG, issued an adverse opinion on the effectiveness of internal controls, emphasizing the need for ongoing improvements.

Looking ahead, Vital Farms remains optimistic about its growth trajectory, driven by increasing consumer demand for ethically produced food. The company anticipates continued expansion in both retail and foodservice channels, alongside new product innovations. With a strong liquidity position, including $160.3 million in cash and cash equivalents, and a $60 million credit facility, Vital Farms is well-positioned to support its long-term growth strategy while navigating potential challenges in the market.