Vital Farms, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Vital Farms, Inc. has submitted its annual 10-K filing for the fiscal year ended December 31, 2023, detailing financial performance and operational aspects.</b>

AI Summary

Vital Farms, Inc. (VITL) filed a Annual Report (10-K) with the SEC on March 7, 2024. Vital Farms, Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The filing includes financial data for the years ending December 25, 2022, and December 26, 2021. Key financial statement items such as sales, cost of sales, and selling, general, and administrative expenses are detailed. The report references various financial instruments and accounts, including derivative financial instruments, money market funds, and US corporate bonds. Information regarding employee stock options and stock purchase plans is also included.

Why It Matters

For investors and stakeholders tracking Vital Farms, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Vital Farms' financial health and operational activities for the fiscal year 2023, crucial for investors to assess performance and future outlook. The detailed financial statements and disclosures within the report offer insights into revenue streams, cost structures, and risk factors, enabling stakeholders to make informed investment decisions.

Risk Assessment

Risk Level: medium — Vital Farms, Inc. shows moderate risk based on this filing. The filing is a standard 10-K, which is a comprehensive annual report, but it contains numerous financial details and disclosures that require careful analysis to fully understand the company's financial position and risks.

Analyst Insight

Investors should review the detailed financial statements, risk factors, and management discussion and analysis within the 10-K to understand Vital Farms' performance and strategic direction.

Key Numbers

• 2023-12-31 — Fiscal Year End (Report period)
• 2024-03-07 — Filing Date (Date of submission)
• 2022-12-25 — Prior Fiscal Year End (Comparative financial data)
• 2021-12-26 — Prior Fiscal Year End (Comparative financial data)

Key Players & Entities

• Vital Farms, Inc. (company) — Filer name
• 2023-12-31 (date) — Fiscal year end
• 2024-03-07 (date) — Filing date
• 0000950170-24-027602 (filing_id) — Accession number
• PNC Bank National Association (company) — Mentioned in relation to a revolving credit facility.
• Customer A (company) — Mentioned in context of customer concentration risk.

FAQ

Risk Factors

• Customer Concentration Risk [medium — financial]: The company faces risks related to customer concentration, as evidenced by references to 'Customer A' and sales revenue net for specific fiscal periods.
• Fair Value Measurements [medium — financial]: The company utilizes Level 1 and Level 2 inputs for recurring fair value measurements of assets like derivative financial instruments and US corporate bonds.
• Asset Write-Downs [low — operational]: The filing mentions 'AssetWriteDowns' in the context of 'CostOfSales' for the fiscal year ended December 25, 2022.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-07: Filing Date — Date the 10-K was officially submitted to the SEC.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This is the primary document type filed by Vital Farms, Inc.)

Key Financial Figures

• $0.0001 — registered Common Stock, - par value $0.0001 per share VITL The Nasdaq Stock Mar
• $140.8 million — wth. We have increased net revenue from $140.8 million in fiscal 2019 to $471.9 million in fis
• $471.9 million — e from $140.8 million in fiscal 2019 to $471.9 million in fiscal 2023, which represents a 35.3
• $9.0 billion — egg market accounted for approximately $9.0 billion in retail sales in 2023 and grew at a C
• $531.0 million — egg market accounted for approximately $531.0 million in retail sales in 2023 and grew at a C
• $1.8 billion — ree) market accounted for approximately $1.8 billion in retail sales in 2023 and grew at a C
• $4.8 billion — tter market accounted for approximately $4.8 billion in retail sales in 2023 and grew at a C

Filing Documents

• vitl-20231231.htm (10-K) — 3196KB
• vitl-ex21_1.htm (EX-21.1) — 3KB
• vitl-ex23_1.htm (EX-23.1) — 3KB
• vitl-ex31_1.htm (EX-31.1) — 22KB
• vitl-ex31_2.htm (EX-31.2) — 22KB
• vitl-ex32_1.htm (EX-32.1) — 11KB
• vitl-ex97.htm (EX-97) — 50KB
• img205780192_0.jpg (GRAPHIC) — 146KB
• img205780192_1.jpg (GRAPHIC) — 143KB
• img205780192_2.jpg (GRAPHIC) — 142KB
• img205780192_3.jpg (GRAPHIC) — 30KB
• img205780192_4.jpg (GRAPHIC) — 12KB
• img205780192_5.jpg (GRAPHIC) — 12KB
• img205780192_6.jpg (GRAPHIC) — 17KB
• img205780192_7.jpg (GRAPHIC) — 14KB
• img205780192_8.jpg (GRAPHIC) — 86KB
• img205780192_9.jpg (GRAPHIC) — 253KB
• 0000950170-24-027602.txt (&nbsp;) — 15951KB
• vitl-20231231.xsd (EX-101.SCH) — 1918KB
• vitl-20231231_htm.xml (XML) — 2800KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 17 Item 1B. Unresolved Staff Comments 44 Item 1C. Cybersecurity 44 Item 2.

Properties

Properties 46 Item 3.

Legal Proceedings

Legal Proceedings 46 Item 4. Mine Safety Disclosures 46 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 47 Item 6. [Reserved] 48 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 49 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 61 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 63 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 93 Item 9A.

Controls and Procedures

Controls and Procedures 93 Item 9B. Other Information 93 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 93 PART III Item 10. Directors, Executive Officers and Corporate Governance 94 Item 11.

Executive Compensation

Executive Compensation 94 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 94 Item 13. Certain Relationships and Related Transactions, and Director Independence 94 Item 14. Principal Accountant Fees and Services 94 PART IV Item 15. Exhibit and Financial Statement Schedules 95 Item 16 Form 10-K Summary 97 SPECIAL NOTE REGARDING FO RWARD-LOOKING STATEMENTS This Annual Report on Form 10-K (the "Annual Report") contains "forward-looking statements" (within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this Annual Report, including statements regarding our future results of operations or financial condition, business strategy and plans and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will" or "would" or the negative of these words or other similar terms or expressions. These forward-looking statements include, but are not limited to, statements concerning the following: our expectations regarding our revenue, expenses and other operating results; our ability to acquire new customers and successfully retain existing customers; our ability to attract and retain our suppliers, distributors and co-manufacturers; our ability to maintain relationships with our existing farm networks or further expand such networks; our ability to sustain or increase our profitability; our expectations regarding our future growth in the foodservice channel, including commercial and non-commercial foodservice bu

Business

Item 1. Business Our Company: Bringing Ethical Food to the Table Vital Farms is an ethically minded food company that is disrupting the U.S. food system. We have developed a framework that challenges the norms of the factory food model and allows us to bring high-quality products from our network of family farms to a national audience. This framework has enabled us to become the leading U.S. brand of pasture-raised eggs and the second-largest U.S. egg brand by retail dollar sales. Our ethics are exemplified by our focus on animal welfare and sustainable farming practices, including regenerative agricultural practices. We believe our standards produce happy hens with varied diets, which produce better eggs. As an ethical food company, we're helping meet consumer demand for natural, traceable, great-tasting and nutritious food. Our purpose is rooted in a commitment to Conscious Capitalism, and our belief in co-creating positive, long-term outcomes with all of our stakeholders – farmers and suppliers, customers and consumers, communities and the environment, employees, who we refer to as crew members, and stockholders. Our approach has been validated by our financial performance and our impact on the food industry. We are also a Certified B Corporation, a designation reserved for businesses that balance profit and purpose to meet the highest verified standards of social and environmental performance, public transparency and legal accountability. Our Ethical Decision-Making Model Stakeholders Guiding Principles Farmers and Suppliers Forming strong relationships with our network of more than 300 family farms, who are the foundation of our resilient and reliable supply chain Customers and Consumers Delivering the transparency and quality around food products that today's consumers demand Crew Members Empowering our crew members by investing in their financial security, development and overall well-being Community and Environment Investing in th

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View this 10-K filing on SEC EDGAR