Vital Farms, Inc. (VITL) shares plummeted 5.11% in the pre-market session on Thursday, despite reporting better-than-expected fourth-quarter earnings. The company's stock took a hit as investors reacted to the ongoing supply constraints caused by the impact of HPAI (Highly Pathogenic Avian Influenza) on poultry flocks across the United States.
The Austin-based company reported a 22.2% increase in net revenue to $166 million for the fourth quarter ended December 29, 2024, driven by volume growth and price/mix benefits. However, the company acknowledged that it had experienced supply constraints at the start of 2025 due to the impact of HPAI on poultry flocks in the U.S.
Despite the challenges, Vital Farms maintained an optimistic outlook for 2025. The company expects its supply chain investments in 2024 and 2025 to bear fruit in the second half of the year, helping drive its net revenue and adjusted EBITDA guidance for 2025. Vital Farms projected net revenue of at least $740 million and adjusted EBITDA of at least $100 million for the full year 2025, representing growth of at least 22% and 15%, respectively, compared to fiscal year 2024.