Blue Buffalo announces its results

Blue Buffalo Pet Products, one of the leading natural pet food companies in the United States, has announced its fourth quarter and full year 2016 results. In the fourth quarter of 2016, net sales increased by $29.9 mio, or 11.3 per cent, to $295.1 mio, driven primarily by volume growth. Net sales of dry foods increased by $23.2 mio, or 10.8 per cent, to $238.2 million, while net sales of wet foods, treats and other products increased by $6.7 mio, or 13.2 per cent, to $56.9 mio.
Gross profit increased by $20.7 mio, or 18.6 per cent, to $131.9 mio and gross margin was 44.7 per cent, compared with 41.9 per cent in the fourth quarter of 2015. The increase in gross margin was primarily driven by higher net price realisation and lower input costs.
 Net sales for 2016 increased by $1 122.3 mio, or 11.9 per cent, to $1 149.8 mio, primarily driven by volume growth. Net sales of dry foods increased by $94.8 mio, or 11.4 per cent, to $928.9 mio, while net sales of wet foods, treats and other products increased by $27.5 mio or 14.2 per cent, to $220.9 mio. Gross profit increased by $96.9 mio, or 23.1 per cent, to $515.7 mio and gross margin was 44.9 per cent, compared with 40.8 per cent in 2015.
For the full year 2017, the company expects to deliver net sales between $1 240 mio and $1 270 mio. The previously announced three-year, $200 million capital investment programme as well as the ongoing capital investments will be funded by existing available cash, according to the company. Buffalo Pet Products expects 2017 capital expenditure to be approximately $150 mio to $170 mio.