Barfresh Provides Fourth Quarter and Full Year 2024 Results and Business Update
Rhea-AI Summary
Barfresh Food Group (NASDAQ: BRFH) reported record annual revenue of $10.7 million for fiscal year 2024, with a gross margin of 34% and adjusted gross margin of 37%. The company launched Pop & Go™ 100% Juice Freeze Pops in Q4 2024, contributing to initial revenue generation.
Q4 2024 revenue was $2.8 million, up from $1.9 million in Q4 2023, though gross margin decreased to 26% from 33% due to temporary production inefficiencies. The company reported a Q4 net loss of $852,000.
In February 2025, Barfresh secured $3 million in growth financing through a common stock offering to scale production capacity. The company projects fiscal year 2025 revenue between $14.5-$16.6 million, with supply chain constraints expected to resolve by end of Q2 2025 when bottle co-manufacturing partners complete equipment installations.
Positive
- Record annual revenue of $10.7M in 2024, up from $8.1M in 2023
- Successful launch of new Pop & Go™ product line in Q4 2024
- Secured $3M growth financing to scale production capacity
- Projected revenue growth to $14.5-$16.6M for 2025
- Improved adjusted EBITDA loss to $1.3M from $1.7M in 2023
Negative
- Q4 2024 net loss increased to $852,000 from $701,000 in Q4 2023
- Q4 gross margin declined to 26% from 33% year-over-year
- Ongoing production inefficiencies and increased logistics costs
- Full year net loss of $2.8M in 2024
- Low cash position of $1.1M in cash and receivables as of December 2024
News Market Reaction 1 Alert
On the day this news was published, BRFH declined 10.26%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Company Achieves Highest Fiscal Year Revenue in Company History
Revenue of
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Company Raises
Company Expects Record Revenue for Fiscal Year 2025 of
LOS ANGELES, March 27, 2025 (GLOBE NEWSWIRE) -- Barfresh Food Group Inc. (the “Company” or “Barfresh”) (Nasdaq: BRFH), a provider of frozen, ready-to-blend and ready-to-drink beverages, is providing a business update for the full year ended December 31, 2024.
Management Comments
Riccardo Delle Coste, the Company’s Chief Executive Officer, stated, “Our team delivered record annual revenue of
“Looking ahead to 2025, with our recently strengthened balance sheet following our successful capital raise, we are well-positioned to leverage our enhanced production capacity and innovative product portfolio to capture significant opportunities in both the education and broader foodservice markets and improve cash flow and overall margins. Based on our strong pipeline and continued market momentum, we expect 2025 to deliver another record year with revenue projected to reach between
Fourth Quarter of 2024 Financial Results
Revenue for the fourth quarter of 2024 was
Net loss for the fourth quarter of 2024 was
Adjusted EBITDA was a loss of approximately
Fiscal Year 2024 Financial Results
Revenue for the full year of 2024 was
Net loss was
Adjusted EBITDA for the full year 2024 improved to a loss of
Non-GAAP Financial Measures
The above information is presented in conformity with accounting principles generally accepted in the United States. In order to aid in the understanding of the Company’s business performance, the Company has also presented below certain non-GAAP measures, including Adjusted Gross Profit, EBITDA and Adjusted EBITDA, which are reconciled in the table below to comparable GAAP measures, and certain calculations based on its results including Gross Margin and Adjusted Gross Margin. Management believes that Adjusted Gross Profit and Adjusted EBITDA provide useful information to the investor because it is directly reflective of the performance of the Company. The exclusion of certain items including manufacturing relocation costs in calculating Adjusted Gross Profit and stock compensation and other non-recurring costs such as those associated with the product withdrawal, the related dispute, and certain manufacturing relocation costs in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of the Company’s core business performance. Adjusted Gross Profit and Adjusted EBITDA are not recognized measurements under GAAP and should not be considered as an alternative to Gross Profit, loss from operations, net loss or any other performance measure derived in accordance with GAAP.
| For the three months ended December 31, | For the year ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenue | $ | 2,788,000 | $ | 1,922,000 | $ | 10,717,000 | $ | 8,127,000 | ||||||||
| Cost of revenue | 2,058,000 | 1,280,000 | 7,049,000 | 5,243,000 | ||||||||||||
| Gross profit | 730,000 | 642,000 | 3,668,000 | 2,884,000 | ||||||||||||
| Manufacturing relocation (1) | 107,000 | - | 283,000 | - | ||||||||||||
| Adjusted Gross Profit | $ | 837,000 | $ | 642,000 | $ | 3,951,000 | $ | 2,884,000 | ||||||||
| Gross Margin | 26 | % | 33 | % | 34 | % | 35 | % | ||||||||
| Adjusted Gross Margin | 30 | % | 33 | % | 37 | % | 35 | % | ||||||||
| (1) Represents costs incurred to relocate single-serve ready-to-blend beverage pack production lines owned by Barfresh at the conclusion of a multi-year manufacturing agreement. | ||||||||||||||||
| For the three months ended December 31, | For the year ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net loss | $ | (852,000 | ) | $ | (701,000 | ) | $ | (2,825,000 | ) | $ | (2,824,000 | ) | ||||
| Depreciation and amortization | 68,000 | 94,000 | 283,000 | 419,000 | ||||||||||||
| Interest expense | 28,000 | 3,000 | 52,000 | 6,000 | ||||||||||||
| EBITDA | (756,000 | ) | (604,000 | ) | (2,490,000 | ) | (2,399,000 | ) | ||||||||
| Stock based compensation, employees and board of directors | 88,000 | 113,000 | 784,000 | 543,000 | ||||||||||||
| Operating expense related to withdrawn product and related dispute (1) | - | 64,000 | 108,000 | 182,000 | ||||||||||||
| Manufacturing relocation (2) | 107,000 | - | 283,000 | - | ||||||||||||
| Adjusted EBITDA | $ | (561,000 | ) | $ | (427,000 | ) | $ | (1,315,000 | ) | $ | (1,674,000 | ) | ||||
| (1) Barfresh experienced a quality issue with product manufactured by one of its contract manufacturers, which is the subject of a legal dispute as to the source of complaints received. Operating expense in 2023 and 2024 primarily includes legal expense incurred with respect to the dispute. | ||||||||||||||||
| (2) Represents costs incurred to relocate single-serve ready-to-blend beverage pack production lines owned by Barfresh at the conclusion of a multi-year manufacturing agreement. | ||||||||||||||||
Balance Sheet
As of December 31, 2024, the Company had approximately
In February 2025, the Company secured
Commentary and Outlook for 2025
For Q1, the Company expects revenue and margins to be consistent with Q4 levels as it continues to manage its supply chain through a transitional period. This temporary constraint will resolve when its bottle co-manufacturing partners complete their equipment installation at the end of Q2, eliminating the current dual-location manufacturing and packing process that is temporarily increasing the Company’s supply chain costs and positioning the company for very strong back half of the year revenue growth.
The Company expects to achieve record fiscal year revenue of between
Supplier Dispute
During the third quarter of 2022, Barfresh received customer complaints related to the textural consistency of some of the Company’s Twist & Go™ bottle product, which was isolated to one manufacturer. The product was found to be safe for consumption but did not meet the textural standards as outlined in the supply agreement with the manufacturer. In response, Barfresh withdrew product from the market and destroyed on-hand inventory. Barfresh attempted to resolve the issues by informal negotiation, as contractually required prior to filing suit; however, such negotiations were unsuccessful. Barfresh filed a complaint on November 10, 2022, in the Federal District Court in Los Angeles against the manufacturer. In response, the manufacturer terminated the supply agreement. On January 20, 2023, Barfresh filed a voluntary dismissal of the complaint which allows the parties to reach a potential resolution outside of the court system. However, as the parties were once again unable to come to an agreement, Barfresh re-filed the complaint in California State Court in August 2023 and the case continues to progress through the court system. Due to the uncertainties surrounding the claim, Barfresh is not able to predict either the outcome or a range of reasonably possible recoveries that could result from its actions against the manufacturer, and no gain contingencies have been recorded. The total impact of the product withdrawal and loss of a manufacturer of Twist & Go™ bottle product may be subject to change.
Conference Call
The conference call to discuss these results is scheduled for today, Thursday, March 27, 2025, at 1:30 pm Pacific Time (4:30 pm Eastern Time). Listeners can dial (877) 407-4018 in North America, and international listeners can dial (201) 689-8471. A telephonic playback will be available approximately two hours after the call concludes and will be available through Thursday, April 10, 2025. Listeners in North America can dial (844) 512-2921, and international listeners can dial (412) 317-6671. Passcode is 13750486. Interested parties may also listen to a simultaneous webcast of the conference call by logging onto the Company’s website at www.barfresh.com in the Investors-Presentations section.
About Barfresh Food Group
Barfresh Food Group Inc. (Nasdaq: BRFH) is a developer, manufacturer and distributor of ready-to-blend and ready-to-drink beverages, including smoothies, shakes and frappes, primarily for the education market, foodservice industry and restaurant chains, delivered as fully prepared individual portions or single serving and bulk formats for on-site preparation. The Company’s single serving, on-site prepared product utilizes a proprietary, patented system that uses portion-controlled pre-packaged beverage ingredients, delivering a freshly made frozen beverage that is quick, cost efficient, better for you and without waste. For more information, please visit www.barfresh.com.
Forward-Looking Statements
Except for historical information herein, matters set forth in this press release are forward-looking, including statements about the Company’s commercial progress, success of its strategic relationship(s), and projections of future financial performance. These forward-looking statements are identified by the use of words such as “grow”, “expand”, “anticipate”, “intend”, “estimate”, “believe”, “expect”, “plan”, “should”, “hypothetical”, “potential”, “forecast” and “project”, “continue,” “could,” “may,” “predict,” and “will” and variations of such words and similar expressions are intended to identify such forward-looking statements. All statements, other than statements of historical fact, included in the press release that address activities, events or developments that the Company believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made based on experience, expected future developments and other factors the Company believes are appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. The contents of this release should be considered in conjunction with the Company’s recent filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, including any warnings, risk factors and cautionary statements contained therein. Furthermore, the Company expressly disclaims any current intention to update publicly any forward-looking statements after the distribution of this release, whether as a result of new information, future events, changes in assumptions or otherwise.
Investor Relations
John Mills
ICR
646-277-1254
John.Mills@icrinc.com
Deirdre Thomson
ICR
646-277-1283
Deirdre.Thomson@icrinc.com
FAQ
What is Barfresh's (BRFH) revenue guidance for fiscal year 2025?
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What was Barfresh's (BRFH) gross margin in fiscal year 2024?
How much growth financing did BRFH secure in February 2025?
When will BRFH resolve its current production inefficiencies?
