Financial Data Statements

Net Sales

Net sales for the three months ended September 25, 2021, were $419.7 million, an increase of $54.3 million or 15%, compared to net sales of $365.4 million for the three months ended September 26, 2020. North American product sales were $349.2 million, an increase of $46.3 million or 15% as compared to the same period in the prior year, primarily driven by increases in Flip, Core, Oat Milk, Complete, and Zero. Additionally, North American cream sales were $33.0 million, an increase of $4.0 million or 14% as compared to the same period in the prior year, primarily attributable to increased demand in the food service industry related to the loosening of COVID-19 lockdowns. International product net sales contributed $35.6 million, an increase of $4.6 million or 15% as compared to the same period in the prior year, primarily attributable to our yogurt products and the Gippsland Dairy Mix-In products. International cream sales were $1.9 million, a decrease of $0.5 million or 21% as compared to the same period in the prior year.

Net sales for the nine months ended September 25, 2021, were $1,213.0 million, an increase of $147.2 million or 14%, compared to net sales of $1,065.9 million for the nine months ended September 26, 2020. North American product sales were $1,008.0 million, an increase of $124.3 million or 14% as compared to the same period in the prior year, primarily driven by increases in Flip, Core, Oat Milk, Complete, and dairy Coffee Creamers. Additionally, North American cream sales were $96.6 million, an increase of $9.6 million or 11% as compared to the same period in the prior year, primarily attributable to increased demand in the food service industry related to the loosening of COVID-19 lock downs. International product net sales contributed $101.6 million, an increase of $14.6 million or 17% as compared to the same period in the prior year, primarily attributable to our yogurt products and the Gippsland Dairy Mix In products. International cream sales were $6.8 million, a decrease of $1.4 million as compared to the same period in the prior year.

The

Gross Profit

Gross profit for the three months ended September 25, 2021 was $82.4 million, a decrease of $2.3 million or 3%, from $84.7 million for the three months ended September 26, 2020. The decrease in gross profit was driven by increased inflation in logistics, milk and packaging costs, partially offset by higher net sales and lower ingredient costs.

Gross profit margin was 20% for the three months ended September 25, 2021, as compared to 23% for the three months ended September 26, 2020.

Gross profit for the nine months ended September 25, 2021 was $255.8 million, an increase of $17.7 million or 7%, from $238.1 million for the nine months ended September 26, 2020. The increase in gross profit was driven by higher net sales and lower ingredient costs, partially offset by inflation in logistics, packaging and milk costs.

Gross profit margin was 21%, and 22% for the nine months ended September 25, 2021 and September 26, 2020.

Selling, General, and Administrative Expenses

SG&A expenses for the three months ended September 25, 2021 were $70.4 million, an increase of $9.1 million or 15% from $61.3 million for the three months ended September 26, 2020. SG&A expenses represented 17% of sales for each of the three months ended September 25, 2021 and September 26, 2020. The increase in SG&A expenses is primarily driven by increased marketing spend back to pre-COVID-19 pandemic levels of marketing spend, as well as higher compensation expense.

SG&A expenses for the nine months ended September 25, 2021 were $207.6 million, an increase of $18.7 million or 10% from $188.9 million for the nine months ended September 26, 2020. SG&A expenses represented 17% and 18% of sales for the nine months ended September 25, 2021 and September 26, 2020, respectively. The increase in SG&A expenses is primarily driven by increased marketing spend back to pre-COVID-19 pandemic levels of marketing spend, as well as higher compensation expense.

Interest Expense

Interest expense for the three months ended September 25, 2021 was $22.7 million, a decrease of $0.7 million from $23.5 million for the three months ended September 26, 2020.

Interest expense for the nine months ended September 25, 2021 was $68.4 million, a decrease of $0.5 million from $68.8 million for the nine months ended September 26, 2020.