Thank Dick our provide an you, then greater highlights begin, Katie, overview detail will and and To of results. financial business provide everyone. recent performance, on afternoon, and our financial I’ll good
will Finally, your to Dick, Scott and available answer I be questions.
feed We And very has to is plan generated to our pleased are clear biggest serve people our and that with our their XXXX. consumers fulfilling planet. that are our and Feed and pets with parents, enabling ways In for sales increase distribution net way of is the customers, the ACV first start in growth, first momentum very and our momentum in mission strong quarter us change since pet Growth our more we that XXXX. our team. with the significant pets, doing quarter, within to people that the the delivered good for for It pets
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benefits presence. retail the Retailers embracing of Second, increasingly Freshpet. strengthen are Freshpet’s
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two fridges and with three those or Additionally, we have now fridges. some have XXX more of stores
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yields. our of production in by had plan, was QX, which we in On record throughput efficiency strong the improvement in manufacturing part continued and element driven
our The is second pricing. component of margin plan improvement
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the the We of average line benefit get will pricing, of the total X% full in QX.
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improvement we plan can margin hire highly-qualified further likely behind achieve XX% will gross employees margin the position will long-term and in gross XX% be growth Given demonstrated so are trained place, fully to of and that a this in deliver many we employed elements margin our train put and three to us a volume essential believe in to capability all success. team. gross in When adjusted QX XXXX adjusted fully our and rapid our growth,
heavy our a cumulative gain the points where expect basis points of Due the year. We XXX significant by advertising to ended second-half in spending, absorption of also and XXXX. a increasing this investment versus in SG&A see benefit and we year, basis expect to the see to SG&A absorption XXX we of more that lumpiness
XX QX. improving by basis As points the significant a year basis a SG&A, quarter you leverage when result, we in But exclude media versus ago ago, improved in investment in our by year heavier gained versus XXX points. SG&A
in are the Freshpet’s ago, back-half reap as we two development year, confident investment has to our towards goal. We Recall, significant skewed still our the Canada on years it increased the growth. while EBITDA parts all X.X%, was projected our the of due structure, margin significant support past the significant making deliver UK. of began track investments continue as are cost to was plans the measured adjusted benefits and in to our Fourth, the the media year year. improvement EBITDA our for first-half the versus of scale that to in of Adjusted X.X%
foundation their both the Last in year, at consumer velocity Our UK increased and growth Canadian that using elements works each key Canada of in and elements UK. country, establishing validated is model each This of and we still strong in infancy. those build we’re that making the the year, distribution. driving ultimately good the awareness, businesses are to increasing progress long-term for Freshpet
we marketing long-term major is both be the in building growth patient aware these But keenly must everything seeing disciplined fundamentals potential markets, suggest that are the first before that out investments. we significant. making We’re and
driving Those Our our work XX% to velocity national distribution advertising conditions. business system Canada up and in expanded Canada. our our the is drove that completed are distribution Canadian We’ve program significant ultimately strongly velocity the drive that beyond was in in-stock fuel strengthen also gains ACV the quarter. current behind gains will first that in better
lead saw The very customer in are once UK its significant We late progress. progress, this is much gains air. our We velocity encouraged began QX on but and business made also by in earlier it it national good advertising development. in went
but still to Freshpet capacity have potential. place today. are incremental is longer-term in beyond X% accelerated very to days We long-term and expect we capability indicate fundamentals build generate ACV the It that UK, to continue over time early distribution good into expansion. for the falling support the Fifth,
We expect permits are those to the X.X, as final previously indicated, to in stages begin permitting XXXX, that are issued. of are This process start-up approximately in we and and the shortly on Kitchens the spend will $XXX puts us construction, after the of million. we we for deliver second-half construction still projecting schedule
in We the place hope annual for XXXX. of to key guidance, in have have the capability also and second-half the recruiting personnel our begun we outlined incremental in
necessitates and our ways that lives their and our for balance and planet. people relationships pets and so demand that are discuss results site our our with more us QX it. for more good for capacity in for fast doing also of summary, it enrich momentum are and to doing our in are over foods all-natural to to Additionally, mission our in of parents next more turn when we start detail location, geographically a pet will XXXX are In ready towards we we are us the that select with significant I rising diverse year. financials we the commitments. expansion a to prospecting and confidence our necessary These providing so give the on to for outlook now their delivering XXXX have our goals enable fresh off Dick their pets, fulfilling track that deliver the
