Vital Farms Inc (VITL) 2023 Q4 法說會逐字稿

Good day, and thank you for standing by, and welcome to the Vital Farms fourth quarter 2023 earnings conference call. (Operator Instructions) Again, please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today Anna Kate Heller, Investor Relations. Please go ahead.

美好的一天，感謝您的耐心等待，歡迎參加 Vital Farms 2023 年第四季財報電話會議。 （操作員指示）再次請注意，今天的會議正在錄製中。我現在想將會議交給今天的演講者，投資者關係部門的安娜·凱特·海勒 (Anna Kate Heller)。請繼續。

Thank you. Good morning, and welcome to Vital Farms fourth quarter and fiscal year 2023 earnings conference call and webcast. I'm joined on today's call by Russell Diez-Canseco, President and Chief Executive Officer; Thilo Wrede, Chief Financial Officer, and , Chief Marketing Officer. By now, everyone should have access to the company's fourth quarter and fiscal year 2023 earnings press release issued this morning is available on the Investor Relations section of Biopharma's website at investors dot arraybiopharma.com.

謝謝。早安，歡迎來到 Vital Farms 第四季和 2023 財年財年財報電話會議和網路廣播。總裁兼執行長 Russell Diez-Canseco 也參加了今天的電話會議。 Thilo Wrede，財務長和行銷長。到目前為止，每個人都應該可以在 Biopharma 網站的投資者關係部分查看今天早上發布的公司第四季度和 2023 財年收益新聞稿，網址為 Investors dot arraybiopharma.com。

In the course of this call, management may make forward-looking statements within the meaning of the federal securities laws. These statements are based on management's current expectations and beliefs and involve risks and uncertainties that could cause actual results to differ materially from those described in a forward looking statements.

在本次電話會議過程中，管理階層可能會做出聯邦證券法意義內的前瞻性陳述。這些陳述是基於管理階層目前的預期和信念，涉及可能導致實際結果與前瞻性陳述中描述的結果有重大差異的風險和不確定性。

Please refer to today's press release and to the Company's annual report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC today and other filings with the SEC for a detailed discussion of the risks that could cause actual results differ materially from those expressed or implied in any forward-looking statements made today.

請參閱今天的新聞稿以及公司今天向 SEC 提交的截至 2023 年 12 月 31 日財年的 10-K 表格年度報告以及向 SEC 提交的其他文件，以了解可能導致實際結果的風險的詳細討論與今天發表的任何前瞻性陳述中明示或暗示的內容有重大差異。

Please note that on today's call, management will refer to adjusted EBITDA and adjusted EBITDA margin, which are non-GAAP financial measures. While the company believes these non-GAAP financial measures provide useful information for investors, the presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. Please refer to our earnings release for a reconciliation of adjusted EBITDA and adjusted EBITDA margin to their effectiveness comparable measure prepared in accordance with GAAP.

請注意，在今天的電話會議上，管理層將參考調整後的 EBITDA 和調整後的 EBITDA 利潤率，這些都是非 GAAP 財務指標。雖然公司認為這些非公認會計原則財務指標為投資者提供了有用的信息，但這些信息的呈現並不旨在被孤立地考慮或作為根據公認會計原則呈現的財務信息的替代品。請參閱我們的收益發布，以了解調整後 EBITDA 和調整後 EBITDA 利潤率與根據 GAAP 編制的有效性可比較指標的對帳情況。

And now I would like to turn the call over to Russell Diez-Canseco, President and Chief Executive Officer of Vital Farms.

現在我想將電話轉給 Vital Farms 總裁兼執行長 Russell Diez-Canseco。

Thanks, Mickey. Good morning and thanks, everyone, for your time today. I'll start by sharing how Vital Farms continues to deliver on our commitments to stakeholders, including the commitments we made to our shareholders in September at our 2023 Analyst Day. Then I'll hand it over to our CMO, Kathryn McKeon, and to cover how Vital Farms continues to grow our purpose-driven brand and build trusted relationships with consumers. Thilo Wrede, our CFO will then provide more in-depth information on our fourth quarter and full year results as well as guidance for fiscal year 2024.

謝謝，米奇。早安，謝謝大家今天抽出時間。首先，我將分享 Vital Farms 如何繼續履行我們對利害關係人的承諾，包括我們在 9 月的 2023 年分析師日向股東做出的承諾。然後我會將其交給我們的首席行銷長 Kathryn McKeon，介紹 Vital Farms 如何繼續發展我們以目標為導向的品牌並與消費者建立信任關係。我們的財務長 Thilo Wrede 隨後將提供有關我們第四季度和全年業績的更深入資訊以及 2024 財年的指導。

The headline today is that we had our strongest ever quarter for net revenue, and we're on track to meet the ambitious multiyear goals that we laid out at our Analyst Day, including our growth to $1 billion of net revenue by 2027. We also made significant progress toward our 2027 targets for 35% gross margin and 12% to 14% adjusted EBITDA margin.

今天的頭條新聞是，我們的淨收入達到了有史以來最強勁的一個季度，並且我們有望實現我們在分析師日制定的雄心勃勃的多年目標，包括到2027 年將淨收入增長到10 億美元。我們也在實現 2027 年毛利率 35% 和調整後 EBITDA 利潤率 12% 至 14% 的目標方面取得了重大進展。

We entered 2024 with strong momentum and a well-defined roadmap to reach the 2027 targets. Let's get into some of the details. Starting with net revenue. We had a record fourth quarter with $135.8 million of net revenue. That's the highest net revenue we've ever achieved in a single quarter and a 23.4% increase over the fourth quarter of 2022.

我們以強勁的勢頭和明確的路線圖進入 2024 年，以實現 2027 年的目標。讓我們來了解一些細節。從淨收入開始。我們第四季的淨收入達到創紀錄的 1.358 億美元。這是我們單季實現的最高淨收入，比 2022 年第四季成長 23.4%。

We delivered $13.9 million of adjusted EBITDA or 102.6% growth versus the fourth quarter of 2022. This record quarter was driven by a combination of strong consumer demand, increased distribution, expanded skews at existing customers and a diversified supply chain with over 300 family farms. We also benefited from a 53rd week of operations in the fourth quarter, which contributed about 7.7% of net revenue growth and 12.7% of adjusted EBITDA growth during the quarter.

與2022 年第四季相比，我們實現了1,390 萬美元的調整後EBITDA，即成長102.6%。這項創紀錄的季度是由強勁的消費者需求、分銷增加、現有客戶傾斜擴大以及擁有300多個家庭農場的多元化供應鏈共同推動的。我們還受益於第四季度第 53 週的運營，該季度貢獻了約 7.7% 的淨收入增長和 12.7% 的調整後 EBITDA 增長。

As we discussed at our Analyst Day, we continue to focus on expanding distribution to new retailers and increasing skews at existing retailers. Both efforts paid off in the fourth quarter. Our distribution gains during 2023 were considerable. We added close to 2,000 new stores compared to the end of 2022, meaning that our products were available in approximately 24,000 retail locations across the United States at the end of 2023.

正如我們在分析師日討論的那樣，我們繼續專注於擴大對新零售商的分銷，並增加現有零售商的偏差。這兩項努力在第四季度得到了回報。 2023 年我們的分銷收益相當可觀。與 2022 年底相比，我們增加了近 2,000 家新商店，這意味著到 2023 年底，我們的產品在美國各地約 24,000 個零售點有售。

The majority of our distribution gains in 2023 were from expansion in our mass channel and existing chains as well as regional retailers in the Northeast, California and the South. We also increased the average number of SKUs at existing retailers. Our average SKUs per store in the food channel was 2.7 for 2023 compared to 2.4 in 2022.

2023 年，我們的大部分分銷收益來自大眾通路和現有連鎖店以及東北部、加州和南部地區零售商的擴張。我們也增加了現有零售商的平均 SKU 數量。 2023 年，我們食品通路每家商店的平均 SKU 為 2.7 個，而 2022 年為 2.4 個。

We're continuing with our expansion as we already have some key wins in January and February of 2024 that will add even more SKUs in existing stores throughout the year, including at several leading grocery retail. We believe these incremental wins set us up for continued growth at these retailers in 2024 and beyond, and we expect additional wins throughout the year.

我們正在繼續擴張，因為我們已經在 2024 年 1 月和 2 月取得了一些關鍵成果，全年將在現有商店（包括幾家領先的雜貨零售店）中增加更多 SKU。我們相信，這些增量勝利將為我們在 2024 年及以後的這些零售商的持續成長奠定基礎，並且我們預計全年都會取得更多勝利。

We continue to see faster growth in sales of higher price point skews, particularly fueled by strong demand for our 18 count packs and Organichem positive trends in the organic category demonstrate the strong reputation and foundation of the Vital Farms brand. They also show that consumers are increasingly willing to pay a premium to make sustainable and ethical food choices.

我們繼續看到更高價位的銷售成長更快，特別是在對我們的 18 片裝的強勁需求推動下，以及 Organichem 在有機類別中的積極趨勢證明了 Vital Farms 品牌的良好聲譽和基礎。他們還表明，消費者越來越願意支付溢價來選擇可持續且合乎道德的食品。

Our expanded distribution increased skews at existing stores and growth in higher price points views enabled us to grow sales and unit volume, while the rest of the category was either flat or down as. Of the 24 weeks ended December 31, 2023, Vital Farms now has the number one branded SKU in the food channel based on dollar sales.

我們擴大的分銷增加了現有商店的偏差，以及更高價格點瀏覽量的增長，使我們能夠增加銷售額和單位數量，而該類別的其他產品要么持平或下降。截至 2023 年 12 月 31 日的 24 週中，按銷售額計算，Vital Farms 目前在食品通路中擁有排名第一的品牌 SKU。

Looking specifically at the data in the tracked channels during the 13 weeks ended December 24, 2023, the ad category experienced a retail dollar decline of 31%, while Vital Farms grew retail dollar sales by 13% in the same time period. Additionally, the category saw unit volumes stay flat during the same timeframe, while Vital Farms unit volumes grew by about 1%. It is worth noting that due to the mix shift to 18 count packs our volume growth in tracked channels tends to be underreported.

具體來看截至 2023 年 12 月 24 日的 13 週內追蹤管道的數據，廣告類別的零售額下降了 31%，而 Vital Farms 同期的零售額增長了 13%。此外，該類別的單位銷量在同一時間段內保持平穩，而 Vital Farms 的單位銷量增長了約 1%。值得注意的是，由於混合轉向 18 件裝，我們在追蹤通路中的銷售成長往往被低估。

Our dollar share is over 8% of the total category. Our resilient supply chain with over 300 family farms and our world-class washing and packing facility at a central station are big reasons why we are able to continually meet growing customer demand, our supply chain model and our ability to execute has also enabled us to successfully navigate potential disruptions like avian influenza without significantly impacting our commitments to customers and consumers.

我們的美元份額佔整個類別的 8% 以上。我們擁有 300 多個家庭農場的彈性供應鏈以及位於中心站的世界一流的清洗和包裝設施是我們能夠不斷滿足不斷增長的客戶需求的重要原因，我們的供應鏈模式和執行能力也使我們能夠成功應對禽流感等潛在幹擾，而不顯著影響我們對客戶和消費者的承諾。

We believe our strong close to 2023 sets us up for another important year on our progress to being a $1 billion company by 2027. We're making a number of investments to support that growth and an important one is our digital transformation, which will enable us to streamline and automate processes, achieve greater efficiency and control costs.

我們相信，我們在2023 年的強勁表現將為我們在2027 年成為一家價值10 億美元的公司的道路上又一個重要的一年奠定基礎。我們正在進行多項投資來支持這一增長，其中一個重要的投資是我們的數位轉型，這將使我們能夠實現數位轉型。我們簡化和自動化流程，實現更高的效率並控製成本。

The centerpiece of this digital transformation is a new ERP system, which we believe will go live in summer of 2025 and enable us to take the next crucial step as a leader in ethical foods. We have a comprehensive ERP project plan and with the right external advisers and strong internal team, which will help us continue delivering for our stakeholders over the next year and well into the future.

這個數位轉型的核心是新的 ERP 系統，我們相信該系統將於 2025 年夏季投入使用，使我們能夠作為道德食品的領導者邁出關鍵的下一步。我們擁有全面的 ERP 專案計劃、合適的外部顧問和強大的內部團隊，這將有助於我們在明年和未來繼續為利害關係人提供服務。

I'm going to close where I started this section. Vital Farms set some really ambitious multiyear goals in 2023, including our growth to $1 billion in net revenue by 2027. We had a great close to 2023, and we're on track for another big year in 2024.

我將結束本節的開始部分。 Vital Farms 在2023 年設定了一些非常雄心勃勃的多年目標，包括到2027 年將淨收入增長到10 億美元。我們在2023 年即將結束時取得了豐碩的成果，並且預計在2024 年迎來又一個重要的一年。

I'll now hand it over to our Chief Marketing Officer, Kathryn McKeon, to discuss how we were able to continue growing our brand and deepening relationships with consumers.

現在我將把它交給我們的首席行銷長 Kathryn McKeon，討論我們如何能夠繼續發展我們的品牌並加深與消費者的關係。

In QSR, Vital Farms continued to build trusted relationships with our consumers in 2023 we increased brand awareness, purchase frequency by rate and share flows, and we were able to do that while shifting our plans throughout the year to capitalize on changing market dynamics. We focused on the long-term growth of the brand as we always have and drove over 6 billion impressions through earned media in-store marketing and by extending our bullshit Free campaign across streaming television like HBO, social platforms, YouTube, podcasts and even billboards.

在QSR 方面，Vital Farms 繼續與消費者建立信任關係，2023 年我們提高了品牌知名度、按價格計算的購買頻率和份額流量，並且我們能夠做到這一點，同時調整全年計劃以利用不斷變化的市場動態。我們一如既往地專注於品牌的長期成長，並透過免費媒體店內行銷以及將我們的廢話免費活動擴展到 HBO、社交平台、YouTube、播客甚至廣告看板等串流電視，推動了超過 60 億次展示。

We did have a 10% lift in year over year. Brand awareness in 2023, fueled by continued investment in our bullshit free brand campaign and timely activations like our holiday campaign, which uniquely reinforced our relationships with family farms on streaming services like Paramount Plus and Peacock. We ended the year at 23% awareness and reinforced our position as a category leader on this key brand metric.

我們確實比去年同期成長了 10%。 2023 年的品牌知名度得益於我們對「無廢話」品牌活動的持續投資以及假日活動等及時激活，這獨特地加強了我們與 Paramount Plus 和 Peacock 等串流媒體服務上的家庭農場的關係。截至年底，我們的認知度為 23%，並鞏固了我們作為此關鍵品牌指標的類別領導者的地位。

In 2023, we also deepen loyalty with our target consumer, improving purchase frequency by rate and share of wallet. And plainly, our already loyal consumers were even more loyal and spent more with the brand last year. This stands out in the context of the overall category. And we're thrilled, but not surprised that we continue to simultaneously deepen loyalty and increase awareness. We have another big year in store for 2024 as we continue building the Vital Farms brand by increasing awareness and deepening loyalty with our target group of consumers.

2023 年，我們也將加深目標消費者的忠誠度，透過率和錢包份額提高購買頻率。顯然，我們已經忠誠的消費者去年更加忠誠，並在該品牌上花費了更多。這在整個類別中脫穎而出。我們很興奮，但並不感到驚訝，因為我們繼續同時加深忠誠度和提高意識。 2024 年我們將迎來另一個重要的一年，我們將透過提高目標消費者群體的認知度和加深忠誠度來繼續打造 Vital Farms 品牌。

We will continue investing in our breakthrough through share pre brand campaign, tapping into cultural conversations that connect to our business, connecting with consumers through our high touch consumer engagement model and evolving our shopper marketing program. And we will continue grounding our brands and the authentic stories that come from our commitment to improve the lives of people, animals and the planet.

我們將繼續投資於我們的突破，透過分享品牌前活動，利用與我們業務相關的文化對話，透過我們的高接觸消費者參與模式與消費者建立聯繫，並發展我們的購物者行銷計劃。我們將繼續紮根我們的品牌和真實的故事，這些故事來自我們對改善人類、動物和地球生活的承諾。

We are also making two shifts that will help us accelerate progress toward our bold brand awareness scores. We are recalibrating our pricing and promotion strategy to drive trial and reach new consumers. And we're deepening our consumer insights expertise, which will help us better target consumers with the right media and messaging. Thank you for your continued confidence in Vital Farms and for your time today. With that, I will pass it over to Thilo.

我們也做出了兩項轉變，這將有助於我們加快實現大膽的品牌知名度分數的進程。我們正在重新調整定價和促銷策略，以推動試用並吸引新消費者。我們正在深化我們的消費者洞察專業知識，這將幫助我們透過正確的媒體和資訊更好地瞄準消費者。感謝您對 Vital Farms 的持續信任以及今天的寶貴時間。這樣，我會將其交給 Thilo。

Hello, everyone, and thank you for joining us today. I will review our financial results for the fourth quarter and fiscal year ended December 31, 2023. I will then provide details on our guidance for fiscal year 2024. As a reminder, in 2023, our results benefited from a 53rd week of operations in the fourth quarter compared to the standard 52-week fiscal year end 2022 and '24.

大家好，感謝您今天加入我們。我將回顧我們截至2023 年12 月31 日的第四季度和財年的財務業績。然後，我將提供有關2024 財年指導的詳細信息。提醒一下，2023 年，我們的業績受益於2023 年運營的第53 週。與 2022 年和 24 財年結束時的標準 52 週財年相比，第四季的情況有所不同。

As you have already heard on this call, the fourth quarter was strong with a record net revenue of $135.8 million. That is an increase of 23.4% compared to the prior year period. This was driven by shipment volume growth of 11.6% and higher price mix.

正如您在本次電話會議中已經聽到的那樣，第四季度表現強勁，淨收入達到創紀錄的 1.358 億美元。與去年同期相比成長了 23.4%。這是由 11.6% 的出貨量成長和更高的價格組合推動的。

Volume growth was driven by an increase at both new and existing retail customers. The extra week in the fourth quarter of 2023 contributed $8.5 million to net revenue or 7.7% to growth, excluding the extra week in fourth quarter of 2023. Net revenue increased 15.7%.

銷售成長是由新零售客戶和現有零售客戶的增加所推動的。不包括 2023 年第四季的額外一周，2023 年第四季的額外一周為淨收入貢獻了 850 萬美元，即成長 7.7%。淨收入成長了 15.7%。

Gross profit for the fourth quarter of 2023 was $45.2 million or 33.3% of net revenue compared to $33.3 million or 30.3% of net revenue for the fourth quarter of 2022. Gross profit dollars benefited mainly from higher sales to 300 basis point gross margin expansion was driven by price increases across our entire Charlotte portfolio in January 2023, and moderate promotional environments and moderating commodity and logistics costs, which were partially offset by higher packaging and labor costs.

2023 年第四季的毛利為4,520 萬美元，佔淨收入的33.3%，而2022 年第四季的毛利潤為3,330 萬美元，佔淨收入的30.3%。毛利主要受惠於銷售額增加至300 個基點的毛利率擴張2023 年 1 月，夏洛特整個投資組合價格上漲，促銷環境溫和，商品和物流成本下降，但包裝和勞動成本上升部分抵消了這一影響。

SG&A expenses for the fourth quarter of 2023 were $28.8 million or 21.2% of net revenue compared to $22.0 million or 20.0% of net revenue in the fourth quarter last year. The increase in SG&A was driven by higher marketing expense accompanied by an increased employee related costs as we added headcount to support our continued growth.

2023 年第四季的 SG&A 費用為 2,880 萬美元，佔淨收入的 21.2%，而去年第四季為 2,200 萬美元，佔淨收入的 20.0%。 SG&A 的成長是由於行銷費用增加以及我們增加員工人數以支持持續成長而導致的員工相關成本增加所致。

Shipping and distribution expenses in the fourth quarter were $7.3 million or 5.4% of net revenue compared to $7.8 million or 7.1% of net revenue in the fourth quarter of 2022. The decrease in shipping and distribution expenses was driven by a decline in line haul rates and internal efficiencies as we continue to grow our shipment volume.

第四季的運輸和分銷費用為730 萬美元，佔淨收入的5.4%，而2022 年第四季的運輸和分銷費用為780 萬美元，佔淨收入的7.1%。運輸和分銷費用的減少是由於線路運輸費率下降所致隨著我們不斷增加出貨量，我們的內部效率也會提高。

Net income for the fourth quarter of 2023 was $7.2 million, or $0.17 per diluted share compared to $1.9 million or $0.04 per diluted share for the fourth quarter of 2022. Adjusted EBITDA for the fourth quarter of 2023 was $13.9 million or 10.2% of net revenue compared to $6.9 million or 6.2% of net revenue for the fourth quarter of 2022.

2023 年第四季的淨利潤為720 萬美元，即稀釋後每股收益0.17 美元，而2022 年第四季的淨利潤為190 萬美元，即稀釋後每股收益0.04 美元。2023 年第四季調整後EBITDA 為1,390 萬美元，佔淨收入的10.2%相比之下，2022 年第四季淨收入為 690 萬美元，佔淨收入的 6.2%。

The extra week in the fourth quarter of 2023 contributed $900,000. Now turning to our fiscal 2023 results. Net revenue for the year was $471.9 million, service at 30.3% increase compared to fiscal 2022, driven by volume gains of 13.9% and higher prices and better mix across the Charlotte portfolio. The volume growth was primarily driven by increases at both new and existing customers. The extra week in fiscal year 2023 contributed $8.5 million of net revenue or 2.3% of growth.

2023 年第四季額外一週貢獻了 90 萬美元。現在轉向我們 2023 財年的業績。今年的淨收入為 4.719 億美元，與 2022 財年相比，服務收入增長了 30.3%，這主要得益於夏洛特投資組合的銷量增長 13.9%、價格上漲和更好的組合。銷售成長主要是由新客戶和現有客戶的成長所推動的。 2023 財年的額外一週貢獻了 850 萬美元的淨收入，即成長的 2.3%。

Excluding the extra week net revenues increased 28.0% in fiscal 2023, excluding both the extra week in fiscal '23 and the impact of avian influenza in the first quarter of '23. Net revenue increased 25.9% in fiscal '23. Gross profit for the year was $162.3 million or 34.4% of net revenue compared to $109.4 million or 30.2% of net revenue in fiscal '22.

排除額外一週的影響，2023 財年淨收入成長了 28.0%，同時排除了 23 財年額外一週的影響和 23 年第一季禽流感的影響。 23 財年淨收入成長 25.9%。本年度的毛利為 1.623 億美元，佔淨收入的 34.4%，而 22 財年的毛利為 1.094 億美元，佔淨收入的 30.2%。

The change in gross profit was primarily driven by higher sales. Our gross margin benefited from increased pricing across the company's portfolio, partially offset by headwinds that included higher input costs, including commodity impacts across the shelling business as well as higher packaging costs.

毛利的變化主要是由銷售增加所推動的。我們的毛利率受益於公司產品組合定價的上漲，部分被不利因素所抵消，其中包括投入成本上升，包括整個脫殼業務的商品影響以及包裝成本上升。

SG&A expenses for the year were $101.7 million or 21.6% of net revenue compared to $77.2 million or 21.3% of net revenue in fiscal 2022. The increase in full-year SG&A was driven by increased marketing spending to support the initiatives Catherine talked about a minute ago, excluding marketing spend, SG&A as a percent of net sales declined by more than a point demonstrating the scale leverage we are achieving.

本年度的SG&A 費用為1.017 億美元，佔淨收入的21.6%，而2022 財年的SG&A 費用為7,720 萬美元，佔淨收入的21.3%。全年SG&A 的成長是由於支持凱瑟琳在幾分鐘內談到的措施的行銷支出增加所致此前，不包括行銷支出，SG&A 佔淨銷售額的百分比下降了一個多點，這表明我們正在實現的規模槓桿。

Shipping and distribution expenses for the year were $27.3 million or 5.8% of net revenue compared to $30.1 million or 8.3% of net revenue in fiscal year 2022. The decrease in costs was driven by favorable freight rate and internal operating efficiencies, partially offset by higher sales volumes. Net income for the year was $25.6 million or $0.59 per diluted share compared to $1.2 million or $0.03 per diluted share in fiscal year 2022.

本年度的運輸和分銷費用為2,730 萬美元，佔淨收入的5.8%，而2022 財年為3,010 萬美元，佔淨收入的8.3%。成本下降是由有利的運費率和內部營運效率推動的，但部分被較高的運費所抵銷。銷售量。本年度淨利為 2,560 萬美元，即稀釋後每股收益 0.59 美元，而 2022 財年淨利為 120 萬美元，即稀釋後每股收益 0.03 美元。

Adjusted EBITDA for the year was $48.3 million or 10.2% of net revenue compared to $16.2 million or 4.5% of net revenue in fiscal 2022. The growth in adjusted EBITDA and meaningful improvement in our adjusted EBITDA margin reflects the growing scale of our business and we believe puts us on the right path to deliver our long-term targets. This marks the first full fiscal year since our IPO with double digit adjusted EBITDA margin, demonstrating the benefits of our growing scale. And this is an achievement we are very proud of. The extra week in fiscal year 2023 contributed $0.9 million to adjusted EBITDA.

本年度調整後EBITDA 為4,830 萬美元，佔淨收入的10.2%，而2022 財年調整後EBITDA 為1,620 萬美元，佔淨收入的4.5%。調整後EBITDA 的成長與調整後EBITDA 利潤率的顯著改善反映了我們業務規模的不斷擴大，我們相信使我們走上實現長期目標的正確道路。這標誌著我們自 IPO 以來第一個完整財年實現了兩位數的調整後 EBITDA 利潤率，展示了我們規模不斷擴大的好處。這是我們非常自豪的成就。 2023 財年額外一週為調整後 EBITDA 貢獻了 90 萬美元。

A quick update on our capital structure. As of December 31, 2023, we had total cash, cash equivalents and marketable securities of $116.8 million. We have no debt outstanding and in fiscal 2023, we generated $39 million of free cash flow. And lastly, I will note that our capital expenditures for the year came in at $11.5 million, which is near the bottom of our previously guided range and well below our initial guidance for the year.

我們資本結構的快速更新。截至 2023 年 12 月 31 日，我們的現金、現金等價物及有價證券總額為 1.168 億美元。我們沒有未償債務，在 2023 財年，我們產生了 3,900 萬美元的自由現金流。最後，我要指出的是，我們今年的資本支出為 1150 萬美元，接近我們之前指導範圍的底部，並且遠低於我們今年的初始指導。

In the fourth quarter, we delayed CapEx spend for our new ag processing facility that was previously expected in Q4. This meant has been shifted to 2024 compared to our initial CapEx guidance for the year. We also adjusted the timing of the previously mentioned digital transformation to ensure that we are fully set up for success.

在第四季度，我們推遲了先前預計在第四季度進行的新農業加工設施的資本支出。與我們最初的當年資本支出指導相比，這意味著已推遲到 2024 年。我們也調整了前面提到的數位轉型的時間，以確保我們為成功做好充分準備。

Now looking ahead for the full fiscal year 2024, we are guiding to net revenue of at least $552 million for at least 17% growth and adjusted EBITDA of at least $57 million for at least 18% growth couple of call-outs on our net revenue cadence. It is worth noting that in the first quarter of 2023, we had a volume benefit from Avian Influenza lapping this benefit in the first quarter of 2024 will be a headwind of 11 points of net revenue growth and eight points of volume growth.

現在展望 2024 年整個財年，我們的淨收入目標是至少 5.52 億美元，成長至少 17%，調整後 EBITDA 至少 5,700 萬美元，成長至少 18%節奏。值得注意的是，2023 年第一季度，我們從禽流感中獲得了銷售收益，而 2024 年第一季的這一收益將面臨淨收入增長 11 個百分點和銷量增長 8 個百分點的逆風。

On the other hand, in the second quarter of 2023, demand was lower as order patterns from retailers were out of sync, which we expect will be a tailwind of three points from that revenue growth in the second quarter of 2024. In addition, due to an industry-wide shortage of eggs in the first half of 2023, we reduced our trade spending, which we now need to lap creating another point of net revenue growth headwind in the first half of 2024.

另一方面，2023 年第二季度，由於零售商的訂單模式不同步，需求較低，我們預計這將比 2024 年第二季度的收入增長帶來三個百分點的推動力。此外，由於由於2023年上半年全行業雞蛋短缺，我們減少了貿易支出，現在我們需要在2024 年上半年創造另一個淨收入成長阻力點。

Additionally, in the fourth quarter of 2024, we will face a headwind from the extra week and 2023 as we are operating a standard 52-week calendar this year. Note that in 2024, we expect a normalized promotional cadence that may add one more housekeeping item to the revenue guidance. We regularly review our product portfolio and in the process decided to discontinue for skews of E & tub butter at the end of 2023 in order to concentrate our focus on strict butter.

此外，在 2024 年第四季度，我們將面臨額外一週和 2023 年的阻力，因為我們今年採用的是標準的 52 週日曆。請注意，到 2024 年，我們預計促銷節奏將正常化，可能會在收入指導中再增加一項客房服務項目。我們定期審查我們的產品組合，並在此過程中決定在 2023 年底停止供應電子黃油和桶裝黃油，以便將重點集中在嚴格黃油上。

Combined, these skews generated $2.6 million of net sales for us in 2023 we anticipate that increased sick by ourselves in 2024 will more than offset the rationalization. And we expect growth in our body butter category compared to 2023.

這些偏差加在一起，在 2023 年為我們帶來了 260 萬美元的淨銷售額，我們預計 2024 年我們自己增加的生病人數將足以抵消合理化帶來的影響。我們預計與 2023 年相比，我們的身體黃油類別將出現增長。

Next let me touch on our adjusted EBITDA guidance. Within our adjusted EBITDA guidance. We expect marketing spend to be up a few million dollars compared to 2023, as we are increasing spend on the we're going to focus media tactics. We expect more of the marketing spend to occur in the second half of the year and higher adjusted EBITDA margin in the first half of the year. Additionally, the cost to produce X remains higher than it was just a few years ago. And our operating plan assumes this will remain the case in the near term, we don't expect any contribution to net sales growth from price mix improvements.

接下來讓我談談我們調整後的 EBITDA 指導。在我們調整後的 EBITDA 指導範圍內。與 2023 年相比，我們預計行銷支出將增加數百萬美元，因為我們正在增加重點媒體策略的支出。我們預計下半年行銷支出將增加，上半年調整後 EBITDA 利潤率將更高。此外，生產 X 的成本仍然比幾年前高。我們的營運計畫假設短期內情況仍將如此，我們預期價格組合的改善不會對淨銷售額成長做出任何貢獻。

We increased prices for organic shell eggs by low double digits at the beginning of January 2024, while keeping the price of conventional mix constant and supporting them with the previously mentioned higher trade spend, we anticipate benefits from lower feed costs, mostly offset by higher butter costs, packaging costs, trade spend, labor costs and shipping rates.

我們在2024 年1 月開始將有機殼蛋的價格提高了兩位數，同時保持傳統混合蛋的價格不變，並通過前面提到的較高的貿易支出來支持它們，我們預計飼料成本下降帶來的好處，大部分被黃油上漲所抵消成本、包裝成本、貿易支出、勞動成本和運費。

Lastly, on guidance, we expect fiscal year 2024 capital expenditures in the range of $35 million to $45 million. Note that this includes $11 million of timing shift from the CapEx spend that was initially planned in 2023. We continue to evaluate our capital allocation priorities and if necessary, we'll provide updates on future earnings calls.

最後，根據指導，我們預計 2024 財年的資本支出將在 3,500 萬美元至 4,500 萬美元之間。請注意，這包括最初計劃於 2023 年進行的 1,100 萬美元資本支出的時間調整。我們將繼續評估我們的資本配置優先事項，如有必要，我們將提供未來收益電話會議的最新資訊。

Overall, 2023 was a strong year for Vital Farms as we navigated some challenging industry dynamics and still delivered a record year for the business was healthy growth and profitability. We are excited to carry this momentum into 2024 builds on our double digit EBITDA margin, and we are focused on increasing retail penetration to raise brand awareness and deliver our products to more and more households.

總體而言，2023 年對於 Vital Farms 來說是強勁的一年，因為我們應對了一些具有挑戰性的行業動態，並且仍然實現了業務健康增長和盈利能力創紀錄的一年。我們很高興能夠在兩位數的EBITDA 利潤率的基礎上將這一勢頭延續到2024 年，我們致力於提高零售滲透率，以提高品牌知名度，並將我們的產品提供給越來越多的家庭。

Thank you for your time and interest in Vital Farms. We appreciate the confidence that you've placed in us with your investment. And with that, we would gladly take your quest.

感謝您花時間關注 Vital Farms。我們感謝您對我們的投資的信任。因此，我們很樂意接受您的追求。

(Operator Instructions) Brian Holland, D.A. Davidson.

（操作員說明）Brian Holland，D.A.戴維森。

Good morning. I wanted to ask about the fundamental drivers of the acceleration we're seeing in the scanner data quarter to date, I think I have it up about 40% year on year. Wondering if you could comment with respect to, again, fundamental drivers versus maybe on-shelf availability for sort of the commoditized peer set in the category?

早安.我想問迄今為止我們在掃描器數據季度中看到的加速的基本驅動因素，我認為同比增長了約 40%。想知道您是否可以再次評論基本驅動因素與該類別中商品化同類產品的貨架可用性？

Hey, Brian, good morning that. Yes, you notice that we've certainly enjoyed seeing that trend. And I think there are a couple of things that I'd point to I wouldn't point to just one thing. And the first is I think we had a really great of sort of supply chain execution in January which can occasionally be a troubled period of time, just given weather disruptions and other things, we managed to thread the needle, I think, really well, and that might have been worth a couple of hundred basis points of growth versus last year.

嘿，布萊恩，早安。是的，您注意到我們確實很高興看到這種趨勢。我認為我會指出幾件事，但我不會只指出一件事。首先，我認為我們在一月份的供應鏈執行情況非常好，這偶爾會是一段困難時期，只是考慮到天氣中斷和其他因素，我們成功地解決了問題，我認為，真的很好，與去年相比，這可能值得增長幾百個基點。

But I think fundamentally what we're seeing is that perhaps we've gotten past some of the initial consumer reaction to the inflation that we all saw at the shelf last year for a variety of brands and combined with the fact that we've returned to a more typical promotional cadence and we didn't yet have a read on how successful those promotions would be when we when we created our guidance and we made our plans.

但我認為從根本上來說，我們所看到的是，也許我們已經克服了消費者對通貨膨脹的一些最初反應，去年我們在各種品牌的貨架上都看到了這種情況，再加上我們已經回歸的事實以更典型的促銷節奏為例，當我們制定指導方針並製定計劃時，我們還沒有了解這些促銷活動會取得多大成功。

So we've seen that strong growth from that. But the one thing I would call out a little bit of a cautionary note because, as you know, that's part of what I do and is that when we look at the timing of the spike we had a year ago in 2023 from avian influenza. The first couple of weeks of January had a smaller impact than we saw in the back half of January and then into February. So it may also be a question of what we're lapping.

所以我們看到了強勁的成長。但有一件事我要提出一點警告，因為如你所知，這是我所做工作的一部分，那就是，當我們觀察一年前的 2023 年禽流感高峰的時間。一月的前幾週的影響比一月後半段和二月的影響要小。所以這也可能是我們研磨什麼的問題。

Appreciate the color. And then I also am looking at the K of foodservice grew about, I think 160% year on year. It's about $28 million, more than 5% of your business out. Just kind of looking for an update on the trajectory of that business, the runway ahead, how sustainable that is? And then just understanding whether there's any margin considerations alongside that.

欣賞顏色。然後我還看到餐飲服務的 K 值年增了 160%。這大約是 2800 萬美元，佔您業務的 5% 以上。只是想了解業務的發展軌跡、未來的發展方向，其永續性如何？然後了解是否還有任何保證金考慮因素。

Yes. Thanks for that, Brian. We continue on the same trajectory and path that we have had for foodservice for a few years now under the strategic leadership of people who leads our sales team and the thought process there is we want to partner with the right of restaurant concepts that are kind of have brands that are committed to sourcing ethical food premium ingredients for an elevated menu and with whom we likely have a consumer overlap.

是的。謝謝你，布萊恩。在領導我們銷售團隊的人員的策略領導下，我們繼續沿著幾年來餐飲服務業的相同軌跡和道路前進，我們希望與餐廳概念的權利合作。有些品牌致力於為高檔菜單採購符合道德的食品優質原料，我們可能與這些品牌有消費者重疊。

And that continues to be a terrific, steady source of growth. We want to grow in the right places and frankly, we're not going to compromise on choosing the right partners in order to accelerate growth. So my headline for all that will be we expect to continue to grow that business. We don't expect it to be dilutive to margins. But I wouldn't see that as as a way to kind of hit the gas as it were in our growth. It's more of us the steady execution of the plan we've been running through for the last few years.

這仍然是一個了不起的、穩定的成長來源。我們希望在正確的地方發展，坦白說，我們不會為了加速成長而在選擇正確的合作夥伴方面做出妥協。因此，我的標題是我們預計將繼續發展該業務。我們預計它不會稀釋利潤。但我不認為這是一種刺激我們成長的方式。更多的是我們對過去幾年來一直執行的計劃的穩步執行。

Great. Thanks. I'll leave it there. Congrats. Thanks, Brent.

偉大的。謝謝。我會把它留在那裡。恭喜。謝謝，布倫特。

Adam Samuelson with Goldman Sachs.

亞當·薩繆爾森與高盛。

Yes, thank you, and good morning, everyone. So I guess the first question, Tom, would love to just get a bit better color on cost and margin outlook. As we think about the outlook for the sales growth and the EBITDA adjusted EBITDA that you've laid out, I mean high teens revenue growth, EBITDA margins essentially flat year on year, and I know increase in trade from trade spend is a part of that.

是的，謝謝大家，大家早安。所以我想第一個問題，湯姆，希望能對成本和利潤前景有更好的了解。當我們考慮銷售成長的前景和您所列出的 EBITDA 調整後 EBITDA 時，我的意思是高青少年收入增長，EBITDA 利潤率同比基本持平，而且我知道貿易支出帶來的貿易增長是那。

But how how do we think about scope for for operating leverage in the business versus reinvestment on moving forward along. Similarly, in the K, there was an allusion to increase payments for your contract for your contract growers as they were starting up and rising kind of inflation for their construction costs. Can you just elaborate a little bit on how the contract rates may have stepped up and what the implications of that are for cash margins.

但是，我們如何考慮業務營運槓桿的範圍與繼續前進的再投資。同樣，在 K 中，有暗示要增加合約種植者的合約付款，因為他們正在啟動，並且建築成本的通貨膨脹不斷上升。您能否詳細說明合約利率可能如何上升以及這對現金利潤率的影響。

Great. Thanks, Adam. Great. The great questions. As always about let me start with the conversation about farmers and then Taylor will take the rest and as you know, we've always considered a steady pipeline of the right farmers to be critical to our long-term growth strategy, and that hasn't changed. We continue to enjoy strong relationships with excellent farmers and to continue to attract and the right number of prospects as we continue to grow.

偉大的。謝謝，亞當。偉大的。偉大的問題。一如既往，讓我從有關農民的對話開始，然後泰勒將負責剩下的事情，如你所知，我們一直認為穩定的合適農民管道對我們的長期增長戰略至關重要，而這並沒有” t改變了。我們繼續與優秀的農民保持著牢固的關係，並在我們不斷發展的過程中繼續吸引適當數量的潛在客戶。

But the reality is that if we look at the experience of our farmers over the last few years, they haven't been immune to the inflationary forces that have affected so many other parts of the supply chain. The one piece that we've observed having more of a lingering effect is it related to construction costs. So we continue to see elevated construction costs for new newborn builds for new farmers in part driven by cost of construction and in part driven by continued elevated interest rates on the loan that they take to do that construction.

但現實情況是，如果我們看看過去幾年農民的經歷，就會發現他們並沒有免受通貨膨脹的影響，而通貨膨脹已經影響了供應鏈的許多其他部分。我們觀察到具有更持久影響的一個因素是它與建築成本有關。因此，我們繼續看到新農民新建的新建築的建築成本不斷上升，部分原因是建築成本，部分原因是他們用於建築的貸款利率持續增加。

So the way we thought about it was in order to make sure that this continues to be a strong financial, a financial arrangement for the farmer. And we want to continue to make sure that the farmer wins at the end of the game. We made the decision to help offset some of those what we believe to be short term elevations in construction and interest rate costs on the front end so that we can continue to attract great farmers and they can continue to see our sort of long-term contract terms as attractive as they always are. So that's the thought process there.

因此，我們的想法是為了確保這對農民來說仍然是一項強大的財務安排。我們希望繼續確保農民在遊戲結束時獲勝。我們決定幫助抵消一些我們認為是前端建設和利率成本短期上升的因素，以便我們能夠繼續吸引優秀的農民，他們可以繼續看到我們的長期合約術語一如既往地具有吸引力。這就是思考過程。

And then Adam, on the on the broader cost picture, I think you alluded to it on the prepared remarks and we are seeing on corn because soybean meal and corn costs are decreasing year over year. So we do get a benefit from that on. But from a gross margin perspective, that's offset by the return of more normal trade spending and by some labor inflation.

然後，亞當，關於更廣泛的成本情況，我想你在準備好的評論中提到了這一點，我們在玉米上看到了這一點，因為豆粕和玉米成本逐年下降。所以我們確實從中受益。但從毛利率的角度來看，這被更正常的貿易支出的回歸和一定程度的勞動力通膨所抵消。

And then below the gross profit line, we are anticipating some increase in freight rates. The jury is out on that one. We hope to get some SG&A leverage, but there's reinvestment and marketing spend. And so that is why why we're giving the guidance that we're giving for the time being.

然後，在毛利線以下，我們預計運費會有所上漲。陪審團對此還沒有定論。我們希望獲得一些SG&A槓桿，但還有再投資和行銷支出。這就是為什麼我們暫時提供指導的原因。

And you also asked about cash flow. So CapEx, we're giving guidance of $35 million to $45 million of CapEx. We're anticipating So continued on strong operating cash flow generations. But compared to prior years, we will we will start putting more money into CapEx. As we've talked in the past, we're getting started with the new facility this year and Russell had mentioned at the beginning that we are going into we are starting now this digital transformation that will also require CapEx spending.

您還問了現金流。因此，就資本支出而言，我們給出的資本支出指引為 3500 萬至 4500 萬美元。我們預計，營運現金流將持續強勁。但與前幾年相比，我們將開始在資本支出上投入更多資金。正如我們過去所說，我們今年將開始建造新設施，拉塞爾在一開始就提到，我們現在正在開始這種數位轉型，這也需要資本支出。

Okay. That's all. That's all very helpful. And just on the on that CapEx point. So you said $10 million was spend budgeted for '23 that that's slipping into '24. Can you just Tony, how much of the rest is the ERP spending and how much would be kind of Egg Central Station three at this point?

好的。就這樣。這一切都非常有幫助。就在資本支出點上。所以你說 23 年的預算支出為 1000 萬美元，而這將滑入 24 年。東尼，您能告訴我，其餘的多少是 ERP 支出嗎？此時雞蛋中央站三號的支出是多少？

Yes, the new facility and the ERP spend just about half of what we are budgeting CapEx for that. And then there's the regular ongoing CapEx plus some additional automation that we want to put into ECS.

是的，新設施和 ERP 的支出僅為我們資本支出預算的一半左右。然後是定期進行的資本支出以及我們希望放入 ECS 中的一些額外自動化。

All right. That's all super helpful. I'll pass it on. Thank you.

好的。這一切都非常有幫助。我會把它傳遞下去。謝謝。

Matt Smith, Stifel.

馬特史密斯，史蒂菲爾。

Hi, good morning to ask a question. There was a comment in the prepared remarks about a pricing and promotional recalibration. Could you expand on that? Is that a recalibration and consideration too, how you have viewed your promotional events in the past? Or is that more indicating that 2024, the recalibration is getting back to a normal cadence of promotional spending.

你好，早安，有個問題想問。準備好的評論中有一條關於定價和促銷重新調整的評論。你能詳細談談？這是否也是一種重新校準和考慮，您如何看待過去的促銷活動？或者說，這更表明 2024 年，促銷支出的重新調整將恢復到正常節奏。

It's really about that are if you'll recall last year, because of the high demand from AI. and therefore, the the empty shelves that we saw, especially at the beginning of the year, we've talked repeatedly about in last year that in the first half of first half of the year, we were able to really meaningfully reduce our trade spend.

如果你還記得去年的話，這確實是因為人工智慧的高需求。因此，我們看到空的貨架，特別是在今年年初，我們在去年反覆談到，在今年上半年，我們能夠真正有意義地減少我們的貿易支出。

And so both their prepared remarks we'll open remarks were supposed to indicate to us that this year we are back to regular promotional spend throughout the year, focused on generating trial and getting new households into the brand from its not a recalibration of how we think about promotional spend of all it's more a '23 was an outlier for us. We're getting back to how we would have done it otherwise.

因此，他們準備好的講話（我們將公開講話）應該向我們表明，今年我們將恢復全年的常規促銷支出，重點是進行試用並讓新家庭加入該品牌，而不是重新調整我們的方式想想促銷支出，23 年對我們來說是個異常值。我們正在回到否則我們會如何做的問題。

Thank you. And a follow-up relating to the butter business. There was a significant decline in sales. I believe revenue was down over 30%, even including the benefit of a 53rd week. You indicated butter sales are expected to grow even though you are rationalizing some SKUs, was there something unique in the fourth quarter related to that rationalization that weighed on the top line and I can leave it there. Thanks. So much.

謝謝。以及與黃油業務相關的後續行動。銷售額出現大幅下降。我相信收入下降了 30% 以上，甚至包括第 53 週的收益。您表示，儘管您正在對某些庫存單位進行合理化，但黃油銷量預計仍會增長，第四季度是否有一些與合理化相關的獨特因素對營收造成壓力，我可以將其留在那裡。謝謝。非常。

Thank you. Yes, I'll talk a little bit about how that business has evolved. You've heard me talk in prior calls about how we started that butter business years ago. With aspirations to grow it to $20 million at the time. That was about the size of the ag business as we have expanded that butter business beyond $20 million, what we found is that it is increasingly hard to find the right farms that meet our very high standards. And so that has affected our ability to grow that business.

謝謝。是的，我會談談該業務是如何發展的。你在之前的電話中聽過我談論我們幾年前是如何開始黃油業務的。當時希望將其成長到 2000 萬美元。這大約是農業業務的規模，因為我們將黃油業務擴大到了 2000 萬美元以上，我們發現越來越難找到符合我們非常高標準的合適農場。因此，這影響了我們發展該業務的能力。

The demand is there, but we're unwilling to procure butter and work with co-packers that we don't love. And so what we had to do is actually rethink our supply chain for butter and in essence, really transform it. And that transformation started in Q4, and we should be complete by the end of Q1. But in the in the transition, we've had some real strong product shortages that have limited our ability to fill orders. So we're expecting to see strong growth in the back half of the year. But for right now, we're a bit challenged on the supply side.

需求是存在的，但我們不願意採購黃油並與我們不喜歡的代加工商合作。因此，我們要做的實際上是重新思考我們的黃油供應鏈，並從本質上真正改變它。這種轉變從第四季開始，我們應該在第一季末完成。但在轉型過程中，我們遇到了一些真正嚴重的產品短缺，限制了我們滿足訂單的能力。因此，我們預計今年下半年將出現強勁成長。但目前，我們在供應方面面臨一些挑戰。

Thank you.

謝謝。

Rob Moskow with TD Cowen.

羅布·莫斯科 (Rob Moskow) 和 TD Cowen。

Hey, thanks for the question. This is Jacob Henry on for Rob Moskow. I saw a slide in your presentation on legislation changes in several states on laws around cage ag. So I'm just curious, are you noticing any change in conversation with with retailers in these states, maybe maybe a greater willingness to allocate more shelf space, ethically sourced eggs?

嘿，謝謝你的提問。我是雅各·亨利（Jacob Henry），代表羅布·莫斯科（Rob Moskow）。我在您的簡報中看到了一張關於幾個州有關籠子公司法律的立法變化的幻燈片。所以我很好奇，您是否注意到與這些州零售商的對話有任何變化，也許更願意分配更多的貨架空間、道德來源的雞蛋？

Yes, thanks for that question. I think it's a great one I think what we've seen historically and what we continue to see is that when these type of legislations go into effect, there is sometimes a temporary disruption or dislocation in the in the ag market as well as as some retailers need to adjust their forecasts for various items within their set. And that can sometimes create a short term, but probably temporary benefit for anybody whose product meets those new standards.

是的，謝謝你提出這個問題。我認為這是一項偉大的立法，我認為我們歷史上看到的以及我們繼續看到的是，當此類立法生效時，農業市場有時會出現暫時的混亂或混亂，以及一些零售商需要調整對其係列中各種商品的預測。這有時可以為產品符合這些新標準的任何人帶來短期但可能暫時的利益。

So we're not seeing a substantial change in the interest of retailers to add our products to their shelves. And I think that what we are seeing potentially Stash from a short term perspective is occasionally some elevated retail pricing for commodity or cage cage-free eggs that generally will smooth out in the months after and the transition to that new regulation.

因此，我們沒有看到零售商將我們的產品添加到貨架上的興趣發生重大變化。我認為，從短期角度來看，我們可能會看到商品或散養雞蛋的零售價格偶爾會有所上漲，這些價格通常會在幾個月後以及向新法規的過渡中趨於平穩。

Great. Thank you. I'll leave it there.

偉大的。謝謝。我會把它留在那裡。

Thank you.

謝謝。

Robert Dickerson, Jefferies.

羅伯特·迪克森，傑弗里斯。

For our group going forward for more than one in a row. It has gone up. I guess two questions, one on long-term sales growth and other on kind of go-forward CapEx for the first one, you know, when we think about kind of the long-term goal of reaching $1 billion in net revenue, it to me, it does seem like you've kind of given you the awards revenues could be at least in '24 that there is maybe an implied tick-up in the growth rate.

我們的團隊連續不只一次前進。它已經上漲了。我想有兩個問題，一個是長期銷售成長，另一個是第一個問題的未來資本支出，你知道，當我們考慮達到 10 億美元淨收入的長期目標時，它我，看來你確實已經給了你獎勵收入，至少在24 年可能會出現隱含的成長率。

I mean, it's not monumental but it's not is there like as you grow or you get bigger, you know that you're implying that your sales growth would kind of naturally decelerate still be high, but decelerate right that happens in companies that sometimes just get a little bit bigger. And you're not really saying that, right? You're saying that basically over the next call it, four years and we could still grow at least 20% a year kind of once we get past this fiscal '24, that has some puts and takes some puts and takes.

我的意思是，這不是具有里程碑意義的，但它並不像你成長或變得更大那樣存在，你知道你在暗示你的銷售成長會自然減速，但仍然很高，但減速是發生在有時只是變大一點。你並不是真的這麼說，對吧？你是說，基本上在接下來的四年裡，一旦我們度過了這個財政年度的“24”，我們仍然可以每年至少增長 20%，其中有一些看跌期權，也有一些看跌期權和看跌期權。

So I'm just curious, Russell, what are those kind of core drivers that give you kind of the conviction that you have, the growth rate we're seeing now we'll be consistent and I'm not sure for if a piece of that just is essentially like West westward market expansions because I know through your Investor Day you've spoke you spoke to kind of increase. You think really about increased distribution and SKUs in store. But just kind of curious as the update post Investor Day, very certain of how you feel about that strategy if we looked out three years.

所以我很好奇，拉塞爾，那些讓你相信你所擁有的核心驅動因素是什麼，我們現在看到的增長率將是一致的，我不確定是否有一部分這本質上就像向西市場擴張，因為我知道在投資者日你已經談到了某種增長。您確實會考慮增加店內的分銷和 SKU。但只是有點好奇，就像投資者日後的更新一樣，如果我們展望三年，您非常確定您對該策略的感受。

Thanks, Rob. And I feel it certainly at least as strongly convicted today, as I did last September, about the trajectory of our sales growth and the potential for our brand to have a right to win in more and more households.

謝謝，羅布。我覺得今天至少和我去年九月一樣，對我們的銷售成長軌跡以及我們的品牌在越來越多的家庭中贏得權利的潛力抱有堅定的信念。

And so the I think our confidence in our ability to maintain, as you said, that 20% plus growth give or take, given the given the puts and takes of any given year is rooted in our continued ability to do the right analysis to identify the right households and develop meaningful strategies for reaching them, ability to continue to expand our capacity, our supply chain and get well out in front of our growth needs.

因此，我認為，正如您所說，考慮到給定的任何一年的看跌和拿走，我們對維持 20% 以上的增長的信心植根於我們持續進行正確分析的能力，以確定合適的家庭，並制定有意義的策略來接觸他們，有能力繼續擴大我們的產能和供應鏈，並充分滿足我們的成長需求。

So that's never a bottleneck, and we continue to invest in the resources needed to tell a very compelling fact-based base SALES story to our retail partners. We create value for consumers and retailers. And I think that's always going to be in fashion in a sense. The good news is Kathryn McKenzie here. And so she can bring even more detail to that conversation, Kathryn of mining.

因此，這從來都不是瓶頸，我們將繼續投資所需的資源，向我們的零售合作夥伴講述一個非常引人注目的基於事實的基礎銷售故事。我們為消費者和零售商創造價值。我認為從某種意義上說，這永遠會成為時尚。好消息是凱瑟琳·麥肯齊來了。因此，採礦業的凱瑟琳 (Kathryn) 可以為這次談話帶來更多細節。

But we have grown households year over year and continue to do that are growing loyalty at the same time, which is them. It is certainly an accomplishment. And as we look at the long-term growth of the brand are thinking about how to bring in the right households and how to grow the household penetration. And that will be a key driver to this long-term growth you're asking about.

但我們的家庭規模逐年擴大，並繼續這樣做，同時忠誠度也不斷提高，這就是他們。這當然是一項成就。當我們著眼於品牌的長期成長時，我們正在思考如何引入合適的家庭以及如何提高家庭滲透率。這將是您所詢問的長期成長的關鍵驅動力。

So the three drivers of that and they go hand-in-hand, the right marketing, the right messaging, as Asaf alluded to, it's strong distribution and direct, right promotion this year we are firing on all cylinders there and bringing those all three together, if they were to happen very much in harmony and in the network further than our path to see that we know how to accomplish those things individually and make them work together to grow our households. So I'm feeling really confident in our ability to grow households, grow sales with both new households and deepen loyalty to hit those numbers.

因此，這三個驅動因素是齊頭並進的，正確的營銷，正確的信息傳遞，正如阿薩夫所提到的，這是強大的分銷和直接、正確的促銷，今年我們將全力以赴，將這三個因素全部帶入如果它們能夠在比我們的道路更遠的網絡中和諧地發生，那麼我們就會知道如何單獨完成這些事情並讓它們共同努力來發展我們的家庭。因此，我對我們增加家庭數量、增加新家庭銷售額以及加深忠誠度以達到這些數字的能力充滿信心。

Great. And then just a question on kind of go-forward CapEx and the commentary around ERPI. just quick a quick clarification in versus just I thought I heard, and does that program start to kick off in '25 or that, you know, we are kind of a process you're working on as you get through '24 and part of '25 such that, that ERP implementation program would be finished and '25? I just didn't hear that.

偉大的。然後是關於未來資本支出類型和圍繞 ERPI 的評論的問題。快速澄清一下，我以為我聽到了，該計劃是否在 25 年開始啟動，或者，你知道，我們是您在 24 年和 24 世紀的一部分時正在開展的一個過程'25 這樣，ERP 實施計劃將完成，'25？我只是沒聽到。

Yes, I know so Cielo can answer more substantially about the timing of the cash flows. But you mentioned timing and when it starts and I wanted to just share a little bit of background the proposal to do a digital transformation came across my desk almost two years ago.

是的，我知道，所以 Cielo 可以更實質地回答有關現金流量時間的問題。但你提到了時間安排和開始時間，我想分享一些背景知識，大約兩年前我的辦公桌上出現了數位轉型的提案。

And we've invested a lot of time as we do with everything we do in very intentionally putting together the right team internally, the right outside support and having the right plan to make sure that we execute excellently. And because this is so critical to the management of our business and to enabling expansion beyond day, I'll let Taylor speak about the investment process and time line.

我們投入了大量的時間，就像我們所做的一切一樣，非常有意識地在內部組建了正確的團隊，提供了正確的外部支持，並製定了正確的計劃，以確保我們出色地執行。因為這對我們的業務管理和日後的擴展至關重要，所以我將讓泰勒談談投資流程和時間表。

Yeah, on the timing. Rob, we've kicked off the and the digital transformation from the timing of the go live somewhere next year. So we're giving ourselves 18 months to do it. And majority of the CapEx spend is happening this year. It's pretty much correlated with some was just ongoing work through it found any peaks or valleys there.

是的，就時間而言。羅布，我們已經從明年某個時候上線的時間開始了數位轉型。所以我們給自己 18 個月的時間來做這件事。大部分資本支出都發生在今年。它與一些正在進行的工作非常相關，因為它發現了那裡的任何峰值或谷值。

And so majority of the CapEx spend for the digital transformation as this year onto some additional spend next year and then summer next year, work on life, we're throwing the switch. And while we're doing that, we're improving our processes, we're improving our data availability. So there are a lot of benefits that we anticipate to get out of this.

因此，今年大部分資本支出用於數位轉型，明年將投入一些額外支出，然後明年夏天，在生活上工作，我們將放棄這一轉變。在我們這樣做的同時，我們正在改進我們的流程，我們正在提高我們的數據可用性。因此，我們預計可以從中獲得許多好處。

Right, super.And then because they're there for me, doesn't sound as if you're calling out any P&L impact from that spend the solid CapEx that I just asked because normally we do see some SG&A impact as you get through the process.

是的，超級。然後因為他們就在我身邊，聽起來你並沒有指出我剛才問的花費可靠資本支出的任何損益影響，因為通常我們確實會看到一些SG＆A影響，因為你通過的過程。

Yes, there is the vast majority of this is CapEx there. Now we can go into a phone call. We can get into the accounting details. There are some that will account is OpEx. But for practical purposes, assume this is all CapEx.

是的，其中絕大多數是資本支出。現在我們可以打電話了。我們可以了解會計細節。有一些會佔OpEx。但出於實際目的，假設這就是全部資本支出。

Okay, great. Thanks a lot. That's not extra.

好的，太好了。多謝。那不是額外的。

Thank you.

謝謝。

Matthew McGinley, Needham.

馬修‧麥金利，李約瑟。

You sort of a follow-up on the margin. It's more of a long-term one of the targets we outlined for 2027 more linear. But how should we think about where you'll be at this year with margins being relatively flat at 10% versus your plan to get to that 12% to 14% over the next few years.

你有點像邊際跟進。這更像是我們為 2027 年制定的更線性的長期目標之一。但是，我們應該如何考慮您今年的利潤率相對穩定在 10%，而您的計劃是在未來幾年達到 12% 至 14%。

Does that leverage in the model come more from gross margin or from operating expense? And as you're on that path to $1 billion, do you see most of that on leverage when you get closer to that billion dollar mark for. Do you see leverage all along the way on where kind of this year is more of an anomaly, you know, the puts and takes where the margins are relatively flat?

模型中的槓桿更多來自毛利率還是營運費用？當您邁向 10 億美元的道路上時，當您接近 10 億美元大關時，您是否會看到大部分槓桿作用？您是否認為今年的槓桿率比較反常，看跌期權和看跌期權的利潤率相對持平？

Yes, I don't think it's going to be exactly linear. There's going to be quarters and years that might be a bit heavy on investment and some years later. I think with the digital transformation, for example, once once we are live, we can think about, hey, with all the data that we are not getting, what other capabilities can we build, for example, where can we invest in running the business even better?

是的，我認為這不會是完全線性的。未來幾季和幾年的投資可能會有點繁重，幾年後也是如此。我認為，例如，透過數位轉型，一旦我們上線，我們就可以考慮，嘿，利用我們沒有獲得的所有數據，我們還可以建立哪些其他功能，例如，我們可以在哪裡投資來運作生意更好嗎？

I think the guidance for this year, it's early days from we talked about anticipating increases in freight rates, for example, we'll see how that will play out on. We are the years to get from where we are, but we're guiding this year in terms of EBITDA to get to the 12% to 14%. It's a it's a pretty clear path for us, but we want to make sure that as we are as we are giving you guidance on how to think about the modeling that we're not getting out of our skis on that.

我認為今年的指導，從我們談論預計運費上漲開始，還為時過早，我們將看看這將如何發揮作用。我們是從現在的水平開始發展的年份，但我們今年的 EBITDA 目標是達到 12% 到 14%。這對我們來說是一條非常清晰的道路，但我們希望確保我們在為您提供有關如何思考建模的指導時，我們不會在這方面脫離我們的滑雪板。

Okay. Appreciate that. And then you had a really outstanding year for operating cash flow generation and most of that was driven by the increase in profitability this year. Your implied profit dollars won't grow at the same rate, obviously that the big margin increase you had and obviously won't have the same impact on cash flows. I am wondering if the operating cash flow this year may be difficult to sustain that same?

好的。感謝。然後，您在經營現金流方面度過了非常出色的一年，其中大部分是由今年盈利能力的增長推動的。您的隱含利潤不會以相同的速度增長，顯然您的利潤率大幅增加，並且顯然不會對現金流產生相同的影響。我想知道今年的經營現金流是否很難維持同樣的水準？

Well, as you did last year, if you have a more normal investment in working capital.

好吧，就像你去年所做的那樣，如果你對營運資金有更正常的投資的話。

And I think where we had a benefit on, Matt last year was that a lot of the growth came from came from pricing. And when you think about what drove what drove our revenue growth last year, it was about half volume, half was price mix. Price is obviously a very nice way to drive cash flow from this year, the growth will be pretty much entirely volume-driven.

我認為去年馬特我們的一個好處是，很多成長來自於定價。當你思考去年推動我們營收成長的因素時，你會發現大約一半是銷量，一半是價格組合。價格顯然是今年推動現金流的一個非常好的方式，成長將幾乎完全由數量驅動。

And so the on the makeup of where the growth is coming from, it's a bit more expensive, if you want. And so with that, we are probably getting a bit less of an operating cash flow benefit than we did last year. But we've continued to be on very cash generating and being able to fund operations entirely with the cash that the business generate.

因此，如果你願意的話，從成長的來源來看，它的價格要貴一些。因此，我們獲得的營運現金流收益可能比去年少一些。但我們仍然能夠產生大量現金，並且能夠完全用業務產生的現金為營運提供資金。

Okay. Thank you very much.

好的。非常感謝。

Ben Klieve with Lake Street Capital Markets.

Ben Klieve 與湖街資本市場。

Thanks for taking my questions. Congratulations on a great end of the year here. I just have one question here to follow up on the foodservice conversation, just 6% of revenues, $25 million, $30 million revenue business out of foodservice on.

感謝您回答我的問題。恭喜您在這裡度過了美好的一年。我這裡只有一個問題要跟進餐飲服務方面的對話，只有 6% 的收入（2500 萬美元、3000 萬美元）來自餐飲服務業務。

I'm wondering how if you can characterize kind of how much of that revenue is really from restaurant that you have kind of characterized as those that uniquely fit your brand versus just kind of more general pull on from from restaurants that may just be aware of your of your product from from the broadliners that you guys have a relationship with the vast majority of that $25 million or $30 million are you guys seeing some pull of that just because of the success of your brands outside of your internal efforts on sales and marketing?

我想知道您是否可以描述其中有多少收入實際上來自您所描述的那些獨特適合您品牌的餐廳，而不是來自可能剛剛意識到的餐廳的更一般的拉動你們的產品來自寬泛的範圍，你們與這2500 萬或3000 萬美元中的絕大多數有關係，你們是否看到了其中的一些吸引力，僅僅是因為你們的品牌在內部銷售和營銷方面的努力之外取得了成功？

I think that's a great question. And I actually don't have an exact split to share with you on this call, although we can probably do a little bit of research and come up with an estimate what I would say is that not unlike the grocery business in 2023, we did experience some sales acceleration due to avian influenza.

我認為這是一個很好的問題。事實上，我在這次電話會議上沒有確切的數據可以與大家分享，儘管我們可能可以做一些研究並得出一個估計，我想說的是，與 2023 年的雜貨業務不同，我們做了由於禽流感，銷售加速。

And I'm I'm confident that we got some trial from some restaurants over the short run that may or may not have become enduring. And there's a conversion rate, not unlike what we see in household. And I'm really excited about that the strategy we've discussed and really partnering with great brands, and we should probably do a better job of helping you understand how big that opportunity is.

我相信我們在短期內從一些餐廳得到了一些嘗試，這些嘗試可能會也可能不會持久。而且還有一個轉換率，與我們在家庭中看到的沒有什麼不同。我對我們討論的策略以及與偉大品牌的真正合作感到非常興奮，我們可能應該做得更好，幫助您了解這個機會有多大。

No. I mean that's very helpful. I appreciate that color, Russell, on more to talk about this. That's a good place to leave it. Congratulations again, I'll hop back in the queue.

不，我的意思是這非常有幫助。我很欣賞這種顏色，拉塞爾，請多談談這一點。這是一個留下它的好地方。再次恭喜，我會重新加入隊列。

Thanks, Ben.

謝謝，本。

Thank you and I'm currently showing no further questions at this time. I hand the call back over to Anna Kate Heller for closing remarks.

謝謝您，我目前沒有提出任何進一步的問題。我將電話轉回給安娜·凱特·海勒 (Anna Kate Heller) 進行總結發言。

Thanks, everyone, for your support of Vital Farms and have a great day.

感謝大家對 Vital Farms 的支持，祝您有個愉快的一天。

This concludes today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。