After the success of its expansion to its manufacturing plant in Lehigh Valley, Freshpet eyes yet another future expansion. This is in hopes to achieve the profit target of the pet food company.
However, the expansion is rather more of an operational approach than literally erecting a new plant. According to reports, Freshpet aims to expand one of its four lines operation to seven-day lines in the second quarter. The company also started hiring more employees to begin such plan.
“We’re in the process of developing a plan that might include either [building] on our existing facility or also nearby to our facility in Lehigh Valley Industrial Park,” Chief Executive Officer of Freshpet Billy Cyr told reports. “And both of those options are underway. We are also, though, at the same time looking at options in other parts of the country, where they might be able to offer us some different benefits.”
According to Cyr, the literal expansion is very possible as well. He added that if it is to happen, it will not hurt Freshpet Kitchen. It will also provide the company with new materials.
However, this still remains as an option.
“This facility is critical to our operations,” Cyr explained further. “There’s no scenario that we would look at that would have us picking this facility and moving it somewhere else. We have a very strong interest in leveraging the talent base that we have there across a much larger business.”
“We just have to work through all the pros and cons of where you would site the facility.”
Freshpet’s Quarterly Reports
Freshpet has also posted its financial report for the quarter recently. The company announced that it had a net income of $1.5 million during the said period.
The earnings per share of the company was reported to have had a 4% record during the quarter. Unfortunately, this result has missed the analysts expectation of 6 cents per share.
As for the revenue of the pet food company, Freshpet announced a result of $40.7 million which also missed expectations. Analysts foretasted a $41 data for the period.
In a full year perspective, the company lost 12 cents per share to $4.3 million. The recorded data for revenues was $156.4 million as well.
Shares of Freshpet has recently suffered bearishly in its recent trades. The company had its shares go down by at least 3.38% which is a 0.65 decline generally.
The company has been declining since last week as it traded bearishly up to the current trading sessions. No indications of potential recovery was seen as well.
Freshpet’s Coppock Curve also mirrored a similar decline as the ones above. While it is still high on the positive range, a buy would be rather advised.
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