Freshpet, Inc. Reports Third Quarter 2016 Results

SECAUCUS, N.J., Nov. 01, 2016 (GLOBE NEWSWIRE) -- Freshpet, Inc. ("Freshpet" or the "Company") (NASDAQ:FRPT) today reported financial results for its third quarter and nine months ended September 30, 2016.

Third Quarter 2016 Financial Highlights Compared to Prior Year Period
  • Net sales were $34.5 million, up 13%
  • Net Income was $0.6 million
  • Adjusted EBITDA was $5.3 million, up 135%
  • Freshpet Fridges increased 11% to 16,261 from 14,670

"In the third quarter, we generated solid net sales and profit growth largely driven by increased velocity per fridge, increased store count, and very promising early results from a new advertising campaign," said Billy Cyr, Freshpet's Chief Executive Officer. "We completed our plant expansion program in October and have also made positive improvements in quality and logistics.  While we still have significant opportunities to improve our performance, we believe these marketing and manufacturing efforts will drive greater sales and efficiencies which we will leverage across our business model."

Third Quarter 2016

Net sales increased 13.0% to $34.5 million for the third quarter of 2016 while the Company's Fresh product offering grew 17.1%. Net sales for the quarter were driven by velocity gains and a 10.8% increase in Freshpet fridge store locations to 16,261 as of September 30, 2016, as compared to the prior year period.

Gross profit was $15.4 million, or 44.4% as a percentage of net sales, compared to $14.0 million, or 45.9% as a percentage of net sales, in the same period last year. For the third quarter 2016, Adjusted Gross Profit was $17.1 million compared to $14.7 million in the prior year and Adjusted Gross Margin was 49.6% compared to 48.1% in the prior year period. Adjusted Gross Profit is a Non-GAAP measure defined under "Non-GAAP Measures," and is reconciled to Gross Profit in the financial tables that accompany this release.

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