Vital Farms, Inc. reported significant financial growth in its latest 10-Q filing for the 13-week and 39-week periods ending September 29, 2024. The company achieved net revenue of $145.0 million for the 13-week period, a 31% increase from $110.4 million in the same period of the previous year. For the 39-week period, net revenue rose to $440.3 million, up from $336.0 million, also reflecting a 31% increase. The growth was primarily driven by increased sales volumes and price adjustments, particularly in the shell egg segment, which accounted for approximately 92% of net revenue.

Gross profit for the 13-week period was $53.5 million, representing a 46% increase from $36.7 million in the prior year, while gross profit for the 39-week period reached $170.1 million, up 45% from $117.1 million. The gross margin improved due to operational efficiencies and price increases on organic egg products.

Operating income for the 13-week period was $9.2 million, compared to $5.2 million in the prior year, and for the 39-week period, it increased to $50.5 million from $24.2 million. Net income for the 13-week period was $7.4 million, up from $4.5 million, while for the 39-week period, net income rose to $42.8 million from $18.4 million. Basic net income per share for the 13-week period was $0.17, compared to $0.11 in the previous year.

The company’s total assets increased to $344.7 million as of September 29, 2024, from $275.2 million at the end of 2023. Cash and cash equivalents also saw a substantial rise, reaching $149.5 million, up from $84.1 million at the end of the previous year. Total stockholders' equity increased to $253.4 million from $192.7 million.

Vital Farms has made strategic investments, including the purchase of approximately 587 acres of farmland in Indiana for $4.2 million, aimed at developing "accelerator farms" to support its operations. The company also transitioned to a new JPMorgan Credit Facility, providing a $60 million revolving credit line, which replaced its previous PNC Credit Facility.

The company continues to face challenges, including rising operational costs and market competition, particularly from private-label products. However, it remains focused on expanding its processing capacity and enhancing its product offerings to meet consumer demand.