LOS ANGELES - Barfresh Food Group Inc. (NASDAQ:OTC:BRFH), a manufacturer and distributor of frozen beverages, has announced the acquisition of 443 new school customer locations across various states. The company, which specializes in ready-to-blend and ready-to-drink products, will now serve over 360,000 students with its beverage offerings starting in the fall of 2024.
The recent customer wins are part of Barfresh's continued expansion in the educational sector, where it has added over 2,600 new school locations in the past two weeks. This growth is indicative of the company's broader strategy to penetrate the education market with its range of products, including the Twist & Go carton and bottled smoothie products, as well as juice and smoothie concentrates.
Riccardo Delle Coste, CEO of Barfresh, expressed optimism about the company's trajectory, citing the appeal of its healthy product portfolio and the ongoing customer acquisition efforts. "Our education business is experiencing continued momentum, highlighted by this latest string of significant new school customer wins across multiple states and districts," said Delle Coste.
The company anticipates further growth before the 2024-2025 school year commences, with numerous bids currently in progress. This expansion is expected to contribute to a projected record revenue and year-over-year margin expansion for fiscal year 2024.
Barfresh's strategy includes the recent appointment of a Vice President of Supply Chain & Co-Manufacturing and plans to introduce new products and onboard a new large bottle co-manufacturer. These initiatives are part of the company's long-term growth plan, which also involves leveraging its expanded sales broker network.
Barfresh Food Group provides its beverages in both individual portions and bulk formats, catering primarily to the education market, foodservice industry, and restaurant chains. The company's patented system allows for quick, cost-efficient, and waste-free preparation of frozen beverages.
The information in this article is based on a press release statement from Barfresh Food Group.
InvestingPro Insights
As Barfresh Food Group Inc. (NASDAQ:BRFH) continues its impressive expansion in the educational sector, the financial metrics provided by InvestingPro paint a detailed picture of the company's current market standing. With a market capitalization of 26.2 million USD, Barfresh is navigating the competitive landscape with a strategic focus on growth. Despite a revenue decline of 11.3% in the last twelve months as of Q4 2023, the company has seen a significant quarterly revenue growth of 34.31% in Q1 2023, which may reflect the impact of its recent customer acquisitions and market penetration efforts.
The company's stock has experienced considerable price volatility, as indicated by a high Price / Book multiple of 10.47, which suggests investors are valuing the company's assets optimistically, possibly due to the potential for future growth in the educational sector. Moreover, Barfresh's stock has delivered strong returns over various timeframes, including an 11.25% return over the last week and a 64.81% return over the last month, signaling positive investor sentiment.
An InvestingPro Tip worth noting is that Barfresh holds more cash than debt on its balance sheet, which provides the company with financial flexibility to support its expansion plans. Additionally, analysts anticipate sales growth in the current year, aligning with the company's expectations of record revenues for fiscal year 2024. On the flip side, analysts do not anticipate the company will be profitable this year, reflecting the challenges Barfresh faces in achieving profitability amidst its growth endeavors.
For readers interested in a deeper analysis, InvestingPro offers additional insights and metrics. There are 10 more InvestingPro Tips available for Barfresh, which can be accessed at https://www.investing.com/pro/BRFH. To further enrich your investment strategy, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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