Business
Freshpet, Inc. Reports Third Quarter 2020 Financial Results
Announces that Freshpet Kitchens 2.0 is Now Online - Expanding Capacity to Meet Strong Demand SECAUCUS, N.J., Nov. 02, 2020 (GLOBE NEWSWIRE) -- Freshpet, Inc.
About this update from Freshpet, Inc.
[{"type":"text","content":"Announces that Freshpet Kitchens 2.0 is Now Online - Expanding Capacity to Meet Strong Demand\n SECAUCUS, N.J., Nov. 02, 2020 (GLOBE NEWSWIRE) -- Freshpet, Inc. (“Freshpet” or the “Company”) (NASDAQ: FRPT) today reported financial results for its third quarter and nine months ended September 30, 2020. Third Quarter 2020 Financial Highlights Compared to Prior Year Period Net sales of $84.2 million, an increase of 29.0%Net income of $3.5 million, compared with prior year net income of $3.1 millionAdjusted EBITDA of $17.0 million, compared to $12.0 million, an increase of 42.2%1 “Despite capacity limitations and the COVID pandemic, Freshpet continued to deliver incredibly strong and consistent growth on the top line and even stronger growth on the bottom line in the third quarter. Clearly, our strategies are working,\" commented Billy Cyr, Freshpet's Chief Executive Officer. \"More importantly, our engineering team was able to complete construction and start-up our Kitchens 2.0, which will provide the capacity to support continued strong growth in 2021 and beyond. We now have the ability to change the way so many more families will feed their pets - forever.” Third Quarter 2020 Third quarter of 2020 net sales increased 29.0% to $84.2 million compared to $65.3 million for the third quarter of 2019. Net sales for the third quarter of 2020 were driven by velocity, innovation, and distribution gains. Gross profit was $36.7 million, or 43.5% as a percentage of net sales, for the third quarter of 2020, compared to $30.7 million, or 47.0% as a percentage of net sales, in the same period last year. For the third quarter 2020, Adjusted Gross Profit was $41.5 million, or 49.3% as a percentage of net sales, compared to $32.5 million, or 49.8% as a percentage of net sales, in the prior year period. The decrease in Adjusted Gross Profit as a percentage of net sales was primarily due to increased processing cost, and increased beef input cost, partially offset by higher sales price realization and a shift in sales mix, as well as plant cost efficiencies. Adjusted Gross Profit is a Non-GAAP financial measure defined under “Non-GAAP Measures,” and is reconciled to Gross Profit in the financial tables that accompany this release. Selling, general and administrative expenses (“SG&A”) were $32.9 million for the third quarter of 2020 compared to $27.2...