Barfresh Provides Second Quarter 2024 Results and Business Update
Barfresh Food Group Inc. (BRFH) reported Q2 2024 results with revenue of $1.5 million and gross margins of 35%. The company expects record Q3 2024 revenue, with orders already over $2.2 million, up 40% year-over-year. Barfresh has secured three new co-manufacturing locations, increasing production capacity by 400% to over 120 million units annually. The company launched 100% Juice Freeze Pops in the education channel and expects to achieve record annual revenue in FY 2024 with improved margins. Despite a net loss of $1.0 million in Q2, Barfresh anticipates positive Adjusted EBITDA in the second half of FY 2024.
Barfresh Food Group Inc. (BRFH) ha riportato i risultati del secondo trimestre 2024 con un fatturato di 1,5 milioni di dollari e un margine lordo del 35%. L'azienda prevede un fatturato record nel terzo trimestre 2024, con ordini già superiori a 2,2 milioni di dollari, in aumento del 40% rispetto all'anno precedente. Barfresh ha consolidato tre nuove sedi di co-manifattura, aumentando la capacità produttiva del 400% a oltre 120 milioni di unità all'anno. L'azienda ha lanciato 100% Juice Freeze Pops nel canale educativo e si aspetta di raggiungere un fatturato annuale record nell'anno fiscale 2024 con margini migliorati. Nonostante una perdita netta di 1,0 milioni di dollari nel Q2, Barfresh prevede un EBITDA adjusted positivo nella seconda metà dell'anno fiscale 2024.
Barfresh Food Group Inc. (BRFH) reportó los resultados del segundo trimestre de 2024 con ingresos de 1.5 millones de dólares y un margen bruto del 35%. La compañía espera ingresos récord en el tercer trimestre de 2024, con pedidos que ya superan los 2.2 millones de dólares, un aumento del 40% interanual. Barfresh ha asegurado tres nuevas ubicaciones de co-manufactura, aumentando la capacidad de producción en un 400% a más de 120 millones de unidades anuales. La empresa lanzó pops de hielo 100% jugo en el canal educativo y espera lograr ingresos anuales récord en el año fiscal 2024 con márgenes mejorados. A pesar de una pérdida neta de 1.0 millones de dólares en el Q2, Barfresh anticipa un EBITDA ajustado positivo en la segunda mitad del año fiscal 2024.
Barfresh Food Group Inc. (BRFH)는 2024년 2분기 실적을 발표하며 수익이 150만 달러에 총 마진이 35%에 이른다고 밝혔습니다. 회사는 이미 220만 달러 이상의 주문을 기록하며 2024년 3분기 수익이 사상 최대치를 기록할 것으로 예상하고 있으며, 이는 전년 대비 40% 증가한 수치입니다. Barfresh는 세 곳의 새로운 공동 제조 위치를 확보하여 연간 1억 2천만 개 이상의 생산 용량을 400% 증가시켰습니다. 회사는 교육 채널에서 100% 주스 동결 팝을 출시하였으며, 2024 회계연도에 연간 수익을 기록할 것으로 기대하고 있습니다. 2분기에 100만 달러의 순손실을 기록했음에도 불구하고 Barfresh는 2024 회계연도 하반기에 긍정적인 조정 EBITDA가 발생할 것으로 예상합니다.
Barfresh Food Group Inc. (BRFH) a annoncé les résultats du deuxième trimestre 2024 avec des revenus de 1,5 million de dollars et des marges brutes de 35%. L'entreprise s'attend à un chiffre d'affaires record au troisième trimestre 2024, avec des commandes déjà supérieures à 2,2 millions de dollars, soit une augmentation de 40% par rapport à l'année précédente. Barfresh a sécure trois nouveaux sites de co-manufacture, augmentant la capacité de production de 400% à plus de 120 millions d'unités par an. L'entreprise a lancé des sucettes glacées 100% jus dans le canal éducatif et s'attend à réaliser des revenus annuels record pour l'exercice 2024 avec des marges améliorées. Malgré une perte nette de 1,0 million de dollars au deuxième trimestre, Barfresh prévoit un EBITDA ajusté positif dans la seconde moitié de l'exercice 2024.
Barfresh Food Group Inc. (BRFH) hat die Ergebnisse für das zweite Quartal 2024 bekannt gegeben, mit Umsätzen von 1,5 Millionen Dollar und Bruttomargen von 35%. Das Unternehmen erwartet Rekordeinnahmen im dritten Quartal 2024, mit Bestellungen von bereits über 2,2 Millionen Dollar, was einem Anstieg von 40 % im Vergleich zum Vorjahr entspricht. Barfresh hat drei neue Co-Produktionsstandorte gesichert, wodurch die Produktionskapazität um 400 % auf über 120 Millionen Einheiten jährlich erhöht wird. Das Unternehmen hat 100% Juice Freeze Pops im Bildungskanal eingeführt und erwartet, Rekordumsätze im Geschäftsjahr 2024 mit verbesserten Margen zu erzielen. Trotz eines Nettoverlusts von 1,0 Millionen Dollar im zweiten Quartal erwartet Barfresh eine positive bereinigte EBITDA in der zweiten Hälfte des Geschäftsjahres 2024.
- Q3 2024 revenue and orders already over $2.2 million, up 40% year-over-year
- Secured three new co-manufacturing locations, boosting production capacity by 400%
- Launched 100% Juice Freeze Pops in education channel, expected to significantly increase revenue
- Expects record annual revenue in FY 2024 and year-over-year margin improvement
- Anticipates positive Adjusted EBITDA in second half of FY 2024
- Gross margins improved to 34.8% in Q2 2024 from 31.4% in Q2 2023
- Secured $1.5 million receivables financing facility to fund inventory
- Net loss increased to $1.0 million in Q2 2024 from $742,000 in Q2 2023
- G&A expenses increased to $871,000 in Q2 2024 from $493,000 in Q2 2023
- Cash position decreased to $383,000 as of June 30, 2024
- Ongoing legal dispute with former manufacturer of Twist & Go bottle product
Insights
Barfresh's Q2 2024 results show mixed signals. While revenue slightly declined to
Barfresh's strategic moves in Q2 2024 position it for potential market expansion. The launch of 100% Juice Freeze Pops in the education channel could be a game-changer, potentially doubling their product impact. Expanding sales reach to cover
The ongoing legal dispute with a former manufacturer presents significant risks for Barfresh. The company's decision to re-file the complaint in California State Court after a voluntary dismissal indicates a complex and potentially protracted legal battle. The non-recourse litigation financing obtained is a strategic move, allowing pursuit of the claim without further direct expenses. However, the lack of predictability in the outcome or potential recoveries adds uncertainty to the company's financial outlook. The dispute's impact on Barfresh's ability to maintain consistent product quality and meet market demand could have long-lasting effects on customer relationships and brand reputation. Investors should closely monitor this situation as it could significantly influence the company's operational and financial performance.
Revenue of
Third Quarter 2024 Revenue and Orders Already at Over
Company Has Recently Secured Three New Co-Manufacturing Locations, Boosting Production Capacity to Over 120 Million Units Annually, a
Expanded Product Portfolio with Recent Launch of
Company Expects to Achieve Record Annual Revenue in Fiscal Year 2024 and Year-over-Year Margin Improvement, Propelled by Increased Production Capacity and Accelerated Customer Wins
LOS ANGELES, Aug. 14, 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 second quarter ended June 30, 2024.
Management Comments
Riccardo Delle Coste, the Company’s Chief Executive Officer, stated, “During the first six months of this year we have made tremendous improvements in all areas of our business. Our recent infrastructure investments have us well positioned to achieve record quarterly revenue results in our third quarter and record annual revenue results while also driving margin improvement. The recent investments include expanding our co-manufacturing capacity by
Second Quarter of 2024 Financial Results
Revenue for the second quarter of 2024 was
Selling, marketing and distribution expenses for the second quarter of 2024 decreased
Net loss in the second quarter of 2024 was
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 EBITDA and Adjusted EBITDA, which are reconciled in the table below to comparable GAAP measures. Management believes that Adjusted EBITDA provides useful information to the investor because it is directly reflective of the performance of the Company. The exclusion of certain items including 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 EBITDA is not a recognized measurement under GAAP and should not be considered as an alternative to net income, income from operations or any other performance measure derived in accordance with GAAP.
Adjusted EBITDA was approximately a loss of
| For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net loss | $ | (1,011,000 | ) | $ | (742,000 | ) | $ | (1,460,000 | ) | $ | (1,647,000 | ) | ||||
| Depreciation and amortization | 72,000 | 102,000 | 146,000 | 205,000 | ||||||||||||
| Interest expense | 6,000 | - | 10,000 | - | ||||||||||||
| EBITDA | (933,000 | ) | (640,000 | ) | (1,304,000 | ) | (1,442,000 | ) | ||||||||
| Stock based compensation, employees and board of directors | 214,000 | (17,000 | ) | 517,000 | 190,000 | |||||||||||
| Operating expense related to withdrawn product and related dispute (1) | 32,000 | 40,000 | 108,000 | 92,000 | ||||||||||||
| Manufacturing relocation (2) | 5,000 | - | 50,000 | - | ||||||||||||
| Adjusted EBITDA | $ | (682,000 | ) | $ | (617,000 | ) | $ | (629,000 | ) | $ | (1,160,000 | ) | ||||
(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 June 30, 2024, the Company had approximately
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 profit margins for 2024 expected to be in the high 30’s.
The Company expects positive adjusted EBITDA in the second half 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, Wednesday, August 14, 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 Wednesday, August 28, 2024. Listeners in North America can dial (844) 512-2921, and international listeners can dial (412) 317-6671. Passcode is 13747368. 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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