Barfresh Provides Record Third Quarter 2024 Results and Business Update
Barfresh Food Group reported record Q3 2024 results with revenue of $3.6 million, up 40% year-over-year, and gross margin of 35%. The company achieved an adjusted gross margin of 38%, driven by favorable product mix and pricing actions. Despite increased expenses, Barfresh expects positive Adjusted EBITDA in Q4 2024. The company launched its new Pop & Go™ product in the education channel and expanded co-manufacturing capacity, covering over 95% of the country. Net loss for Q3 2024 was $513,000, compared to $476,000 in Q3 2023. The company secured a $1.5 million receivables financing facility and maintains approximately $2.1 million in cash and accounts receivable.
Barfresh Food Group ha riportato risultati record per il terzo trimestre del 2024, con un fatturato di 3,6 milioni di dollari, in aumento del 40% rispetto all'anno precedente, e un margine lordo del 35%. L'azienda ha raggiunto un margine lordo rettificato del 38%, grazie a una favorevole combinazione di prodotti e azioni di prezzo. Nonostante l'aumento delle spese, Barfresh prevede un EBITDA rettificato positivo per il quarto trimestre del 2024. L'azienda ha lanciato il suo nuovo prodotto Pop & Go™ nel canale educativo e ha ampliato la capacità di co-manufacturing, coprendo oltre il 95% del paese. La perdita netta per il terzo trimestre del 2024 è stata di 513.000 dollari, rispetto ai 476.000 dollari del terzo trimestre del 2023. L'azienda ha ottenuto una struttura di finanziamento per crediti di 1,5 milioni di dollari e mantiene circa 2,1 milioni di dollari in contante e crediti da clienti.
Barfresh Food Group reportó resultados récord en el tercer trimestre de 2024, con ingresos de 3.6 millones de dólares, un aumento del 40% en comparación con el año anterior, y un margen bruto del 35%. La compañía logró un margen bruto ajustado del 38%, impulsado por una combinación de productos favorable y acciones de precios. A pesar del aumento de gastos, Barfresh espera un EBITDA ajustado positivo en el cuarto trimestre de 2024. La empresa lanzó su nuevo producto Pop & Go™ en el canal educativo y amplió su capacidad de co-manufactura, cubriendo más del 95% del país. La pérdida neta para el tercer trimestre de 2024 fue de 513,000 dólares, en comparación con 476,000 dólares en el tercer trimestre de 2023. La empresa aseguró una línea de financiamiento de cuentas por cobrar de 1.5 millones de dólares y mantiene aproximadamente 2.1 millones de dólares en efectivo y cuentas por cobrar.
Barfresh Food Group는 2024년 3분기 실적에서 360만 달러의 수익을 기록하며 전년 대비 40% 증가한 성과를 보였고, 총 매출 이익률은 35%였습니다. 이 회사는 유리한 제품 믹스와 가격 조치 덕분에 조정된 총 매출 이익률 38%를 달성했습니다. 비용이 증가했음에도 불구하고 Barfresh는 2024년 4분기에 긍정적인 조정 EBITDA를 예상하고 있습니다. 이 회사는 교육 채널에서 새로운 Pop & Go™ 제품을 출시하고, 전국의 95% 이상을 커버하는 공동 제조 능력을 확장했습니다. 2024년 3분기 순손실은 51만 3천 달러로, 2023년 3분기의 47만 6천 달러와 비교되었습니다. 이 회사는 150만 달러의 채권 금융 시설을 확보했으며, 약 210만 달러의 현금 및 매출 채권을 유지하고 있습니다.
Barfresh Food Group a annoncé des résultats record pour le troisième trimestre 2024, avec des revenus de 3,6 millions de dollars, en hausse de 40 % par rapport à l'année précédente, et une marge brute de 35 %. L'entreprise a atteint une marge brute ajustée de 38 %, soutenue par un mix produit favorable et des actions tarifaires. Malgré l'augmentation des frais, Barfresh s'attend à un EBITDA ajusté positif pour le quatrième trimestre 2024. L'entreprise a lancé son nouveau produit Pop & Go™ dans le secteur éducatif et a élargi sa capacité de co-fabrication, couvrant plus de 95 % du pays. La perte nette pour le troisième trimestre 2024 était de 513 000 dollars, contre 476 000 dollars au troisième trimestre 2023. L'entreprise a sécurisé un facility de financement des créances de 1,5 million de dollars et maintient environ 2,1 millions de dollars en liquidités et comptes clients.
Barfresh Food Group hat Rekordwerte für das 3. Quartal 2024 gemeldet, mit einem Umsatz von 3,6 Millionen Dollar, was einem Anstieg von 40% im Jahresvergleich entspricht, und einer Bruttomarge von 35%. Das Unternehmen erzielte eine bereinigte Bruttomarge von 38%, angetrieben durch eine günstige Produktmischung und Preisanpassungen. Trotz gestiegener Ausgaben erwartet Barfresh im 4. Quartal 2024 ein positives bereinigtes EBITDA. Das Unternehmen hat sein neues Produkt Pop & Go™ im Bildungsbereich eingeführt und die Co-Produktionskapazität erweitert, die über 95% des Landes abdeckt. Der Nettoverlust für das 3. Quartal 2024 betrug 513.000 Dollar, im Vergleich zu 476.000 Dollar im 3. Quartal 2023. Das Unternehmen sicherte sich eine Forderungsfinanzierung über 1,5 Millionen Dollar und hält etwa 2,1 Millionen Dollar in Bargeld und Forderungen.
- Record quarterly revenue of $3.6M, up 40% YoY
- Adjusted gross margin improved to 38% from 35% YoY
- Revenue for first nine months increased 28% to $7.9M
- Secured $1.5M receivables financing facility
- Expects positive Adjusted EBITDA in Q4 2024
- Net loss increased to $513,000 in Q3 2024 from $476,000 in Q3 2023
- Selling, marketing and distribution expenses increased to $990,000 from $697,000
- G&A expenses increased to $705,000 from $577,000
- Adjusted EBITDA loss of $124,000 vs $89,000 loss in Q3 2023
- Ongoing legal dispute with manufacturer over product quality issues
Insights
The Q3 2024 results demonstrate significant progress with
However, challenges persist with a net loss of
The launch of Pop & Go™ in the education channel represents a strategic expansion beyond breakfast into lunch menus, potentially unlocking higher volume opportunities. The company's expanded distribution network now covers
The shift to equity-based compensation for directors and management aligns with cash preservation while maintaining growth initiatives. The expanded co-manufacturing capacity expected in Q4 2024 should address previous production constraints, though execution risks remain. The positive outlook for Q4 2024 adjusted EBITDA suggests improving operational efficiency.
Record Quarterly Revenue of
Company Generating Revenue from New Pop & Go™ Freeze Pops in Fourth Quarter 2024
Company Expects to Achieve Positive Adjusted EBITDA for Fourth Quarter 2024
Capacity and Product Portfolio Expansion Paving Way for Record Annual Revenue and Year-over-Year Adjusted Gross Margin Improvement in Fiscal Year 2024
LOS ANGELES, Oct. 24, 2024 (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 third quarter ended September 30, 2024.
Management Comments
Riccardo Delle Coste, the Company’s Chief Executive Officer, stated, "Our strategic investments and operational enhancements have driven exceptional results, with record quarterly third quarter revenue exceeding
Third Quarter of 2024 Financial Results
Revenue for the third quarter of 2024 increased
Selling, marketing and distribution expenses for the third quarter of 2024 increased to
Net loss in the third quarter of 2024 was
Adjusted EBITDA was approximately a loss of
First Nine Months of 2024 Financial Results
Revenue for the first nine months of 2024 increased
Net loss for the first nine months of 2024 was
Adjusted EBITDA was approximately 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 they are 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 September 30, | For the nine months ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenue | $ | 3,637,000 | $ | 2,603,000 | $ | 7,929,000 | $ | 6,205,000 | ||||||||
| Cost of revenue | 2,377,000 | 1,690,000 | 4,991,000 | 3,963,000 | ||||||||||||
| Gross profit | 1,260,000 | 913,000 | 2,938,000 | 2,242,000 | ||||||||||||
| Manufacturing relocation (1) | 126,000 | - | 176,000 | - | ||||||||||||
| Adjusted Gross Profit | $ | 1,386,000 | $ | 913,000 | $ | 3,114,000 | $ | 2,242,000 | ||||||||
| Gross Margin | 35 | % | 35 | % | 37 | % | 36 | % | ||||||||
| Adjusted Gross Margin | 38 | % | 35 | % | 39 | % | 36 | % | ||||||||
| (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 September 30, | For the nine months ended September 30, | ||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| Net loss | $ | (513,000 | ) | $ | (476,000 | ) | $ | (1,973,000 | ) | $ | (2,123,000 | ) | |||||
| Depreciation and amortization | 71,000 | 120,000 | 217,000 | 325,000 | |||||||||||||
| Interest expense | 13,000 | 1,000 | 24,000 | 3,000 | |||||||||||||
| EBITDA | (429,000 | ) | (355,000 | ) | (1,732,000 | ) | (1,795,000 | ) | |||||||||
| Stock based compensation, employees and board of directors | 179,000 | 240,000 | 696,000 | 430,000 | |||||||||||||
| Operating expense related to withdrawn product and related dispute (1) | - | 26,000 | 108,000 | 118,000 | |||||||||||||
| Manufacturing relocation (2) | 126,000 | - | 176,000 | - | |||||||||||||
| Adjusted EBITDA | $ | (124,000 | ) | $ | (89,000 | ) | $ | (752,000 | ) | $ | (1,247,000 | ) | |||||
| (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 September 30, 2024, the Company had approximately
In August 2024, the Company secured a
Commentary and Outlook for 2024
The Company continues to expect to achieve record fiscal year revenue for fiscal year 2024.
The Company continues to expect to achieve higher gross profit in 2024 compared to 2023 with Gross Margin and Adjusted Gross Margin for 2024 expected to be in the mid to high 30’s.
The Company expects positive adjusted EBITDA in the fourth quarter of fiscal year 2024.
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, October 24, 2024, 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, November 7, 2024. Listeners in North America can dial (844) 512-2921, and international listeners can dial (412) 317-6671. Passcode is 13748982. Interested parties may also listen to a simultaneous webcast of the conference call by clicking here or 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
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