Business
Freshpet, Inc. Reports Third Quarter 2021 Financial Results
Estimates Full Year Net Sales of ~$445 millionSupply Chain Headwinds and Accelerating Inflation Reduce Adjusted EBITDA Guidance SECAUCUS, N.J., Nov. 08, 2021
About this update from Freshpet, Inc.
[{"type":"text","content":"Estimates Full Year Net Sales of ~$445 millionSupply Chain Headwinds and Accelerating Inflation Reduce Adjusted EBITDA Guidance SECAUCUS, N.J., Nov. 08, 2021 (GLOBE NEWSWIRE) -- Freshpet, Inc. (“Freshpet” or the “Company”) (Nasdaq: FRPT) today reported financial results for its third quarter ended September 30, 2021. Third Quarter 2021 Financial Highlights Compared to Prior Year Period Net sales of $107.6 million, an increase of 27.8%Net loss of $2.1 million, compared with prior year net income of $3.5 millionAdjusted EBITDA of $14.6 million, compared to prior year of $17.0 million 1 \"Despite unprecedented supply chain challenges, Freshpet's long-term growth model remains intact,\" commented Billy Cyr, Freshpet's Chief Executive Officer. \"Like everyone else, we are facing extraordinary labor and material shortages, and accelerating inflation that have modestly delayed the start-up of new capacity and increased our costs more rapidly than we anticipated -- causing short-term challenges that we are addressing. However, the long-term trends driving Freshpet's growth remain strong, and - thanks to our aggressive capacity expansion initiatives and the investments we made in maintenance, training and automation in Q3 -- we have never been better positioned to fulfill our mission of 'changing the way people nourish their pets forever' than we are today.\" Third Quarter 2021 Net sales increased 27.8% to $107.6 million for the third quarter of 2021 compared to $84.2 million for the third quarter of 2020. Net sales for the third quarter of 2021 were driven by velocity, distribution gains, and innovation. Gross profit was $41.5 million, or 38.6% as a percentage of net sales, for the third quarter of 2021, compared to $36.7 million, or 43.5% as a percentage of net sales, in the prior year period. For the third quarter of 2021, Adjusted Gross Profit was $47.4 million, or 44.0% as a percentage of net sales, compared to $41.5 million, or 49.3% as a percentage of net sales, in the prior year period. The decrease in gross profit as a percentage of net sales and Adjusted Gross Profit as a percentage of net sales was primarily due to increased cost at our Freshpet Kitchens as a result of our wage increase plan, investments as we grow into capacity, inflation of ingredient cost and higher costs at our Freshpet Kitchens South partner. Adjusted Gro...