Vital Farms Stock Surges On Q4 Top-Line Beat, Solid FY22 Outlook

Vital Farms Inc VITL reported fourth-quarter FY21 sales growth of 43.4% year-on-year, to $77.41 million, beating the consensus of $71.63 million.
The revenue increase was driven primarily by continued growth in egg-related sales, driven by volume increases at customers, and new distribution gains at both new and existing retail partners.
Gross profit rose 12.5% Y/Y to $19.8 million with a gross margin contracting 700 basis points to 25.6%, affected by input costs across eggs and butter and continued higher inbound freight inflation.
The operating loss for the quarter was $(4.2) million versus $(2.2) million last year.
Adjusted EBITDA loss expanded to $(2) million versus $(0.1) million a year ago.
EPS loss of $(0.09) was in line with the consensus.
Net cash provided by operating activities was $16.3 million for twelve months. The company held $99.6 million in cash and equivalents as of December 26, 2021.
Outlook: Vital Farms sees FY22 revenue of more than $340 million, increasing 30% Y/Y and above the consensus of $323.38 million.
Price Action: VITL shares are trading higher by 13.3% at $13.71 on the last check Thursday.

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