Vital Farms Updates Long-Term Financial Targets

Company Sets $1 Billion Net Revenue Target for 2027
Maintains 2023 Net Revenue and Adjusted EBITDA Forecast

AUSTIN, Texas, Sept. 19, 2023 (GLOBE NEWSWIRE) -- Vital Farms (Nasdaq: VITL), a Certified B Corporation that offers a range of ethically produced foods nationwide, today updated its long-term financial targets and plans to provide additional detail at its Analyst Day presentation later today.

“Our progress as a brand and as a public company reinforces my enthusiasm about the long-term potential of this business. We believe that what we have built still has significant growth potential within our current categories,” said Russell Diez-Canseco, Vital Farms’ President and CEO.

Diez-Canseco continued, “Vital Farms is well-positioned for continued significant net revenue growth through 2027. The $1 billion net revenue target reflects our confidence in our current business trajectory and the potential we see to further our brand’s momentum. To get there, we will continue increasing brand awareness among consumers, expand retail distribution across new and existing partners, and scale our resilient supply chain.”

Update on Long-Term Financial Targets

• By the end of fiscal year 2027, management expects to generate annual net revenue of more than $1 billion in its current categories.
• Management expects gross margin of at least 35% of net revenue by the fiscal year 2027.
• Management expects Adjusted EBITDA Margin in the range of 12% to 14% of net revenue by the fiscal year 2027.
  

Update on Fiscal 2023 Outlook

• For the full fiscal year 2023, management continues to expect net revenue of more than $465 million, which still anticipates higher net revenue growth rates and gross margin in the first half of year than in the second half of the year.
• Management continues to expect Adjusted EBITDA of more than $35 million for the full fiscal year 2023.
• Finally, management also continues to expect fiscal year 2023 capital expenditures in the range of $16 to $21 million.
  

Vital Farms’ guidance continues to assume that there are no additional significant disruptions to the supply chain or its customers or consumers, including any issues from adverse macroeconomic factors. Vital Farms cannot provide a reconciliation between its forecasted Adjusted EBITDA and Adjusted EBITDA Margin and their most directly comparable GAAP measures without unreasonable effort due to the unavailability of reliable estimates for income taxes, among other items. These items are not within our control and may vary greatly between periods and could significantly impact future financial results.