Jeff. you, everyone. good Thank afternoon, And
results not in consumption year. Freshpet's be the greater where obvious would quarter exactly it today, when our August, from million it we sales to the easily this may guidance delivering we and was reported net in While support growth we raised than $XXX in be expected
quarter demand but greater that a month for line are we second strong, suppliers our our However, capacity, typical we significant and supply change can't we chain for equipment environment challenge change don't we challenges enough reduced up October of due in demand, up million at through us running the $XXX Thus, is in September second the operating orders time. on because to our mistake the ports, ended approximately million. and and the $XXX making our is That to to guidance. to to Freshpet That lost the getting our now, guidance million. impacted more than confident delays line from we're meaningfully QX exceed with but today. make not we're produce will the and very ability constrain is Kitchen small as $XXX equipment causing that South lost in of that so in the than was production unfilled Please
some. maximizing our goal choices results were of driven we've QX reflect to the to the our In of had So, some were the case, Freshpet willing value And by long-term that opportunity. each make. we choices tough make
as costs as much has the some have manage we that best in can, accomplish short-term that to shift made build emerging interest it absorb the food pet our to believe significant sacrifices is we large, of if the opportunity highly-loyal term and consequences. even consumer and a franchise, For and capture towards to through market that. We of a Fresh, the resulting
quarter, and significant does in But feel budgeted on than not we anticipated, those change how more This were our maximizing long-term guidance. consequences growth we than our more some significant we the opportunity. about focus that of
few Let me highlight we choices felt consequences a of and those QX. the in
estimate million sales decision even clear, and sales for deliver points First, We generated generate end to we be quality the quarter, will had strong much automation, the more, could've QX could've we're not that XX generated at ago, we if to sustain up those up when of net investments gave adding choices us enable $XXX of our made need we approximately invest and in to year. the the XX% anticipated the on overdue while deliver rate. manufacturing maintenance, still reliability we continue we we growth fully will we in net manufacturing to to capability. sales, -- growth million year versus If guidance that to had To we supply an our in not our those track to growth. made upgrades, making that our $XX long-term and additional believe
significantly customers we restore customer $X of Additionally, our important million. to we We reduced fast helped could as inventory end but was There customer net it to QX the in production million as could potential sales optimized at service we of October, our improve the also That in could. increase that do that result net an about demand was our about lack by we customer it longer -- days, in production with no $X for of QX do, our sales on levels. and value, restore equivalent very believed of hand everything in X of that service runs has drove where inventory planning higher to The versus resulting service, our schedule QX. inventory of build. us ended was
in fill we demand such because to the improve. to our needed did opposite. low We they it mid-XXs strong and were it is had that fact, In September in quite the rates
the Judging roles it have working sales the rates and is in for the Fortunately, we our in choices in rate loss have presentations net and and quarter, production the could out is of fill XXs. and by made estimate our anticipated called from XXs those those the mid consensus fully QX upgrades on earnings the now clearer. in maintenance our we We fill call.
made our that more on be EBITDA increase, of quarter. to our the to than delayed restored out QX, acceptable adjusted the our out in we our when customer materials have our estimate believe that a then, to in taking in price We We capacity we restore you today, until rather a we QX. but going forward. cost inventory tough impacted inventory we're levels. turned Hopefully However, clarity manageable be timing would turned incorrect, we choice would to of be built give that as the not the levels providing Similarly, increases that until negatively case. service
Our same in costs the escalated if more any we we have our had much adjusted we had $X the more about absorbed pricing timing as Simply of which than the in million had, pricing relief, and us we rapidly guidance. quickly results competitors. would our quarter, we've taken estimate on put, anticipated quickly budgeted versus escalating EBITDA cost than we costs without
being a EBITDA like But a In versus accurately, that had total, adjusted of near-term. think million result, incremental up that rather Each long-term the quarter. I year costs long-term solid, for XX% more it than is $XX.X say determined choices, the even rocky growth. choices versus build instead we growth the down a As to fair same for optimizing this part have made our of was were made our would ago. we ago, of anticipated XX% if i.e. to found year investing effort decisions
on achieve bulk people pets feed our greater we today. provide on related posting will way on changing mission focus could I many likely your of our their results, questions forever. to of the addressing the the the we most that of To two results are minds, Heather and clarity comments So
net the first improve? reduction simple. growth adjusted what than the the second. quarter? will I'll greater and than drove and quite The margin Why sales when it net answer XX% second, wasn't in And address growth question the will the sales why in address quarter, wasn't XX%? is the Heather in gross greater First,
bridge quarter, a accompanying end net the capacity you a already, service, capacity includes annualized continued $XXX.X and customer the that expressed actually presentation We in all at more, million had delivered it's than manufacturing in sell our understand improve and sales sales in in the investing demand to to capacity. we help quarterly to support. $XXX enough we plan $XXX.X and alluded by from our as net a had to net of inventory million in an QX. limited June, limits and more upgrade million the our sales I but our As our maintenance To between building projects be
you a due staffing will X-day all had for decision been in included that capacity shutdown have shortages QX of our deferred As do maintenance our July earnings to see, lines the in that planned during significant our early crisis. to We by constrained our COVID was of presentation.
took two bag Additionally, of out our one in we steps. lines commission of
shutdown the in specific month, by new, this That do on a mentioned inventory year. would timing, we rebuilt efficient ability line QX of the earnings Heather our internal of our before not and The the this so automate could August, about quarter. full the only in deliver more the upgrade will We call, indicating and end late with sales $X phase in early we phase million net it restart but second we're September, more value later the consistently. first of the equipment, that on by followed line. to higher-quality that
days The produce shipped July, by enough points customer particularly have our the we and pounds number we had support less that on result is an might by to everything since inventory by about we to of than Increasing each in d before on maximizing quarter, While have rates rolls. shipments produce several that have doing That item. to days the service to large sales our inventories, of on million we in the moving we restore item would improve runs made, our days key but $X we our item of hand we focused items. on of X had. could means next of improved prefer XX net fill of internal
the this of as expectations confident was alluded remain inventory full-year reason to expected QX in $XXX timing As XXXX million. It the of is different that earlier, estimate occur of we'd QX. our than this in instead sales our build to we approximately net I for
Finally, due shortages, capacity to and million supplier cost us the significant in in about net constraints labor $X quarter. our sales had treat that
balance expect the at this we that year. least the of small, While continue issue for to
us XX% more some limitations We QX than on these problem. production, longer-term That still this looking for year was Despite result $X.X refill net in rebuild year. this last some are for satisfy inventories. of solutions current year produced inventory, of did our and we versus sales, trade XX% we to to sales that ago. growth enabled retail about million The of our
versus You in reconciliation we growth presentation. the will quarter find versus consumption, in net our Nielsen in would. our predicted was consumption another of our production accelerated and strong The the in reconciliation expectations. rate had and line it mid-August, sales as a with measured Demand growth accompanying
the was about two-year in be Going year Nielsen track per its XX%, a versus improvement it XX% growth rate XX% at stacked And on week. of throughout end The consistently exceeding to now of of the now. quarter, by XX% it of the consistently growth was but broad-based, the would. average And The point may a the as point most growth, more versus particularly XX%, anticipated break from ahead of XX% had recent by an strong where weeks ago than pet consumption early year it specialty, from upper and potentially was December, is week ago. August, X again ago XXs in stayed growth year in in quarter is the end to quarter. low we one up
in our as to stocking coolers. by of the customers quarter, to get It this take grew a quarter we XXX finishing versus Our very XXXX sales in business again hesitant mix are XX,XXX. quarter. to target coolers up quite of to until our and in strong fully Store count the will year, put X,XXX accounted new stores for existing grew a remain last total new strongly quarter push X.X% e-commerce net XX%
in will second annual we will it our So added a We're targets well ahead there but the still this already XX close be chance fridges is get purchase on and year second but quarter. for upgrades upgrades of XX there. and
anticipating significant growth. based the we're past and were households Conversely, of line rapid increased the at Household has in fridges While our up gains additions advertising to household and penetration above increases was second from reduced penetration target year, the delays increase new in this next long-term rate modest slowed, due supply Total stores and rate out-of-stocks X%. over up year. our XX%. was benefited well on and
by We half reverse expect XXXX. to first the the end those of of
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reasons in production meaningful four sales on sales on net actual It comparison plan will accompanying few in our QX of of approximately now. a for a larger reconciliation an look minutes. that early First, running today, to in slow versus into Kitchen is incorporates but high-capacity Our through the with South for September full-year the conversion QX. the our can will the quarter that increase we have QX, I A capacity and start sales on coming equipment of in $XXX all impact estimated in we in on shift There and a have significant But absolute at for for have bag fourth-quarter. October, commentary both that the That that a get it that ports delays annual influence did more This year-ago, outlook will be that estimate is significantly are in terms a incremental two we'll what it is to known we will provide at online QX the off provide than net XXXX QX presentation. QX. the the million included capacity getting know detailed versus pieces more net and due line factors operating run-rate to based operation. our that capacity year capacity the implied
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will Third, we from the inventory trade meaningful quarter. record revenue in refill
until will The the strongest in As QX not sales of and in indicated on to our come fourth, year QX that delivering net early inventory Fresh trade in inventory part expect consumption expected, do sales. both of record the If marketing above and Meals also QX. contribute the we and And will our net we've refill December, refilling next invest supported our trade X to refilling improved we support online we Kitchen on rapid our in not our inventory quarters. marketing refilling desire as finish to capacity have completed largely From much We Historically, support with trade consumption. in-stocks earlier, net the the over on business the to but quarter support Roasted also October, have November item. bag finish sales our quarter will reflecting in above on we QX, that and roles XXXX our for I expansions February, lines fourth
interruptions for be or can have past could in be risks cadence and and transportation a versus absenteeism typical from our or our our the else inventions constantly our lines results consumer keep either change goods QX. suppliers, logistics require that America running, due for clear, who enabling customers. everyone including of that change meet in challenges weather production COVID, our a practice. bit still lines that ongoing rate, sells to facilities, threat labor step To in us those the increased positive team will this demand. test in to industry, we disrupt supply by winter Everything from produces incurring to like i.e. a So in and growth We're to potential our plaguing that shipping, entire facilities new Impact production are today, the new and issue startup to partners, of in
greater mentioned at from equipment see good delay caused million could approximation net earlier, us year now I the reality. has in start already $XXX as As the our issue our South. to second line we're Kitchen one million the the that that final results up guidance we of revise getting $XXX aware That than to for of to sales a been delay impact
the retail to little, minor While us for working ramping frustrating long mean as of availability growth. we future are capacity up all simultaneously they support are very will over haul diligently these needed much delays improve to while
XXXX. While the the startup timing or And not as that month. in such widely by push of scheduled has our at It materials, at accompanying site the in start been capacity basic Similarly, construction that up being the those we that timetable we back pets in Kitchen in in will month. Ennis we studs. third because in their very critical allocation seen in are is the to in the will the point near still our remain February prospects, of believe But the the and we I've is CPG that move people for feed reflected delay building short-term of on few one pounds challenges this did in on we putting shortages, of bullish industry. the did - now This projects October, and that significant in face months, back available, our production term. We chart a place typically XX December, last than the labor we installation the we supply of successfully XXXX. both risks, X startup XX% that fall presentation. last early changing - my put to long-term are installation forever. are of construction of on That pushed steel experiencing to term about the the it chain date the the more produced but goal will to about South, of most and at achieve In line impacting almost year, line have blocks some long work, had in end Despite increased way by some potential the QX year. years
months, strong produce at than forward. the growth support X sold significantly and retail, retail we capacity ample conditions Over to past we more providing rebuilding going
customers notice we confidence beginning them gives to to improvements year. hope Our those are fridges and more it next the install
our we have start investing growth months. XXXX in because also with under measured rate time that the to XXXX, us point first long-term our accelerate the projects fast during our will off more even first growth capacity we We in of and further. fulfilling expect have XX%. goals, that comparisons in next to double We half growth growth significant reaccelerated now could mid-August, of that. exit That consumption excess than will QX the on media deliver to year-on-year through a media capacity squarely this in the favorable our rate and focused in inflection have We're consumption the are our and in get construction for investment for year XX occurring media QX
of XXXX. into gross position year. received adjusted price a customer increase a improvement increase effect next go this the delayed offset we're and pricing significant our margin we our announced on improve for to EBITDA portion XX, margin, seeing also meaningful orders November taking We We us That with until service. the can price will designed inflation X.X% in
would increase and gross adjusted adjusted For impact the have our not We takes XXX results. for If competitors our than our purposes ahead. million the and our our around basis $X price woods EBITDA have timing we been of implemented Academy reported sensitivity the new to yet, somatic points that are labor strategy of we'd strategy stabilizing better of built as we you the that our Freshpet at price been providing the increases, time context it results We're is and a with margin us deliver taking their pricing. need. implemented would've better for around out significant positioning staffing the that QX growth
results. These do provide meant not I will best effort simply excuses the to she see now increased scale, improvements. can are evidence on so accelerating to team more of of and with for that, expense members performance While efficiency we're many most our produce beyond, will will more greater increases when can know you so that continued felt clear expect obscured Each those cash the industry us also of to growth. issues our need turn than training that a we our we'll meaningful of try more the over including these the Unfortunately, productivity margins. were seeing of Heather some you are now, contribute Freshpet the come that common rapid of profit early detail and on near-term to fruits associated and the with clarity we're the that. CPG absorbing efforts of Until We are key today the absorption solid continually X but G&A XXXX continually getting our flow. efficient underlying We are debris efforts updating by and will so of Many to 's until the these shareholders and provide pains by growth on of do it those not growth. that our foundation manufacturing. give at drivers then, footing demonstrate we're our deserve the our that as to months of be you Freshpet they right better improvements, signs that, and benefits the provide to an deliver building strong clarity. they will and with ago,
