Business
Freshpet, Inc. Reports First Quarter 2020 Financial Results
Reiterates Full Year 2020 Net Sales Guidance: Updates Profit Outlook for COVID-19 SECAUCUS, N.J., May 04, 2020 (GLOBE NEWSWIRE) -- Freshpet, Inc. (“Freshpet”
About this update from Freshpet, Inc.
[{"type":"text","content":"Reiterates Full Year 2020 Net Sales Guidance: Updates Profit Outlook for COVID-19\nSECAUCUS, N.J., May 04, 2020 (GLOBE NEWSWIRE) -- Freshpet, Inc. (“Freshpet” or the “Company”) (NASDAQ: FRPT) today reported financial results for its first quarter ended March 31, 2020.\n First Quarter 2020 Financial Highlights Compared to Prior Year Period Net sales of $70.1 million, an increase of 27.9%Net loss of $3.6 million, compared with prior year net loss of $3.4 millionAdjusted EBITDA of $5.7 million, compared to $2.8 million, an increase of 106.1%1 “Amidst the challenges created by the COVID-19 health crisis and our capacity limitations, Freshpet’s Feed the Growth plan generated another quarter of strong, consistent growth – delivering more than 25% net sales growth for the eighth time in the last nine quarters and doubling the Adjusted EBITDA from the year ago,” commented Billy Cyr, Freshpet’s Chief Executive Officer. “At times like this, pets provide a source of comfort, companionship and happiness to pet parents, and Freshpet continues to be an important part of more and more of those loving and nurturing relationships. Our team has worked incredibly hard throughout this crisis to enable those relationships by helping to make pets’ and pet parents’ lives better, while also taking care of our team members, our families and the communities we serve.” First Quarter 2020 First quarter of 2020 net sales increased 27.9% to $70.1 million compared to $54.8 million for the first quarter of 2019. Net sales for the first quarter of 2020 were driven by velocity, innovation, and distribution gains. Gross profit was $31.8 million, or 45.4% as a percentage of net sales, for the first quarter of 2020, compared to $25.9 million, or 47.3% as a percentage of net sales, in the same period last year. For the first quarter 2020, Adjusted Gross Profit was $34.7 million, or 49.5% as a percentage of net sales, compared to $27.6 million, or 50.4% as a percentage of net sales, in the prior year period. The decrease in Gross Profit and Adjusted Gross Profit as a percentage of net sales was primarily due to increased production and processing costs, and the related costs of converting the Company’s fourth manufacturing line to a seven-day production, partially offset by higher sales price realization and a shift in sales mix. Adjusted Gross Profit is a Non-GAAP f...