Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM) announced its second-quarter financial results Thursday with net sales of $133.8 million, missing Seeking Alpha’s estimates by $2.2 million. The revenue improved 46.7% year-over-year.
The Fairless Hills, Pa-based hydroponics equipment manufacturer reported an increased in net sales of 46.7% to $133.8 million compared to $91.2 million.
Gross profit increased 65.5% to $29.6 million, or 22.1% of net sales, compared to $17.9 million, or 19.6% of net sales.
Net income attributable to common stockholders was $2.3 million or $0.05 per diluted share compared to a $1.9 million or $0.08 (1) per diluted share. Pro forma adjusted net income was $12.5 million or $0.30 per pro forma diluted share compared to $4.0 million or $0.12 per pro forma diluted share.
Adjusted EBITDA increased 127.5% to $16.2 million compared to $7.1 million.. The company completed two acquisitions during the quarter: HEAVY 16 and House & Garden.
What’s more, Hydrofarm completed two acquisitions subsequent to quarter end: Aurora Innovations and Greenstar Plant Products.It also completed Investor Warrant redemption, raising approximately $56.8 million in gross proceeds.
To quote CEO Bill Toler, “These acquisitions not only help expand our proprietary consumable offerings and manufacturing prowess, but also demonstrate our position as the acquirer of choice in this highly fragmented industry. With positive top-line momentum, the execution of our multi-faceted strategy to increase our proprietary and preferred brand penetration via acquisition and in-house growth, while also boosting our robust commercial business, we believe Hydrofarm is uniquely equipped to capitalize on the long-term growth opportunity within the CEA industry.”
Shares increased $2.12, or 4.5%, to $49.23.