Vital Farms Stock Gains On Strong Q2, Unchanged FY21 Outlook

Vital Farms Inc VITL reported second-quarter FY21 revenue growth of 1.7% year-on-year, to $60.32 million, beating the analyst consensus of $58.90 million.
The revenue increase was driven primarily by continued growth in egg-related sales driven by increased household penetration and new distribution gains at both new and existing retail partners.
Gross profit fell 3.5% Y/Y to $21.9 million with a profit margin of 36.4%.
The operating margin was 5%, and operating income for the quarter declined 67% to $3 million.
Adjusted EBITDA of $5.1 million decreased 45.2% Y/Y.
EPS of $0.09 beat the analyst consensus of $(0.01).
Net cash provided by operating activities was $15.0 million in the quarter. The company held $106.3 million in cash and equivalents as of June 27, 2021.
"We continue to exceed our original growth targets, both by implementing strategic marketing initiatives that drove household penetration to over 5.5 million households and by building collaborative retail relationships that grew retail distribution to over 17,250 stores," said CEO Russell Diez-Canseco.
Outlook: Vital Farms reaffirmed FY21 sales outlook of $246 million - $253 million, versus the consensus of $251.93 million.
Adjusted EBITDA outlook is unchanged at $7 million - $9 million for FY21.
Price action: VITL shares are trading higher by 2.37% at $17.70 in premarket on the last check Tuesday.

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