Freshpet reported financial results for its second quarter ended June 30, 2015. Net sales increased 39.1% to $28.4 million compared to $20.4 million in Q2 2014.
Article continues below
Net sales for the second quarter of 2015 include sales associated with the company's Freshpet Baked test product. Excluding the impact of the Freshpet Baked test product, net sales for the second quarter of 2015 increased 34.3% to $27.4 million. Second quarter net sales growth was driven by increased velocity across all retail channels.
The company also experienced an increase in Freshpet Fridges to 14,354 from 12,593 in the second quarter of 2014.
Gross profit was $13.7 million, or 48.2% of net sales, compared to $10.1 million for the same quarter last year.
The increase in gross profit for the second quarter of 2015 is primarily due to higher net sales and lower manufacturing costs per pound on rolls and roast meals, slightly offset by increased cost of goods sold related to product sales mix as a result of increased net sales from the company's new innovative refrigerated product, Freshpet Select Fresh From the Kitchen.
Excluding the margin impact from the company's Fresh Baked test product, gross margin was 48.9%, compared to 49.4% during the same period last year.
Selling, general and administrative expenses (SG&A) were $15.7 million compared to $13.4 million for the same quarter last year.
As a percentage of net sales, SG&A decreased to 55.3% from 65.7% in the second quarter of 2014.
After adjusting $1.7 million and $0.2 million for non-cash items related to stock-based compensation and the fair valuation of warrants in 2015 and 2014, respectively, as well as $0.6 million in the second quarter of 2015 for fees and expenses associated with the company's secondary offering completed on May 5, 2015, SG&A decreased as a percentage of net sales to 47.3% from 64.6% of net sales in the second quarter of 2014.
Net loss was $2.2 million compared to a net loss of $6.3 million in the second quarter of 2014. Net loss in the second quarter of 2014 included $1.8 million of fees on debt guarantee with no corresponding fees recorded in the second quarter of 2015.
Net loss in the second quarter of 2015 includes $0.6 million of fees and expenses associated with the company's secondary offering completed on May 5, 2015.
Adjusted EBITDA increased $3.1 million to $2.8 million from a loss of $0.4 million in the second quarter of 2014.
Freshpet Baked test product had adjusted EBITDA of less than $0.1 million during the three months ended June 30, 2015. Adjusted EBITDA is a non-GAAP financial measure. Please refer to the financial tables in this press release for a reconciliation of all non-GAAP financial measures. ■