Vital Farms Reports $162.2 Million Revenue, 10% Increase Year-Over-Year

Vital Farms, Inc. reported a net revenue of $162.2 million for the 13-week period ending March 30, 2025, marking a 10% increase from $147.9 million in the same period last year. The company's gross profit rose to $62.5 million, up from $58.9 million, although the gross margin slightly declined from 40% to 39%. The increase in revenue was primarily driven by a combination of price/mix benefits and volume-related growth, with retail sales contributing significantly to the overall performance. However, net income decreased to $16.9 million from $19.0 million year-over-year, resulting in a diluted earnings per share of $0.37 compared to $0.43 in the prior year.

In terms of operational changes, Vital Farms has expanded its employee headcount to support growth, leading to an 18% increase in selling, general, and administrative expenses, which totaled $31.9 million. The company also reported a rise in shipping and distribution costs, reflecting higher sales volume and increased freight rates. Additionally, the company has made strategic investments in its supply chain, including plans for a second egg washing and packing facility in Seymour, Indiana, expected to be operational by 2027, and the installation of a new egg grading system at its existing facility in Missouri.

Vital Farms continues to focus on expanding its market presence, with approximately 26,000 stores now selling its products. The company aims to increase household penetration, which currently stands at about 9.9% for its shell eggs, compared to 97% for the overall shell egg category in the U.S. The company is also exploring growth opportunities in the foodservice channel and plans to enhance its product offerings through innovation.

The company reported cash and cash equivalents of $156.3 million as of March 30, 2025, along with $60 million available under its JPMorgan Credit Facility, indicating a strong liquidity position. However, the company acknowledged potential risks related to economic uncertainty, including inflation and supply chain disruptions, which could impact future operations. Vital Farms remains committed to its long-term growth strategy, focusing on sustainable practices and ethical food production, while navigating the challenges posed by market conditions and agricultural diseases.