Freshpet, Inc. (FRPT) saw its loss widen to $2.88 million, or $0.09 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $1.77 million, or $0.05 a share. Revenue during the quarter grew 9.73 percent to $34.51 million from $31.45 million in the previous year period. Gross margin for the quarter contracted 154 basis points over the previous year period to 45.79 percent. Operating margin for the quarter stood at negative 7.94 percent as compared to a negative 5.08 percent for the previous year period.
Operating loss for the quarter was $2.74 million, compared with an operating loss of $1.60 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $1.95 million compared with $2.48 million in the prior year period. At the same time, adjusted EBITDA margin contracted 224 basis points in the quarter to 5.65 percent from 7.89 percent in the last year period.
“We are off to a good start in fiscal 2017 and are on-track to achieve our annual objectives. In the quarter, our Feed the Growth strategic plan drove a significant increase in consumption from our stepped-up advertising investment and we further optimized our supply chain to more efficiently deliver Freshpet products to retail partners and consumers at lower cost,” said Billy Cyr, Freshpets chief executive officer. “Going forward, we continue to expect our net sales growth and gross margin expansion to be more pronounced. We believe we are on the right path to rapidly scale the Freshpet brand behind our proven marketing message, outstanding product quality, and broad retail distribution."
Freshpet forecasts revenue to be $153 million for fiscal year 2017.
Operating cash flow improves marginallyFreshpet, Inc. has generated cash of $2.08 million from operating activities during the quarter, up 3.07 percent or $0.06 million, when compared with the last year period. The company has spent $3.26 million cash to meet investing activities during the quarter as against cash outgo of $9.79 million in the last year period. It has incurred net capital expenditure of $3.26 million on net basis during the quarter, down 74.96 percent or $9.77 million from year ago period.
The company has spent $0.70 million cash to carry out financing activities during the quarter as against cash inflow of $0.01 million in the last year period.
Cash and cash equivalents stood at $2.02 million as on Mar. 31, 2017, up 660.45 percent or $1.76 million from $0.27 million on Mar. 31, 2016.
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