Blue Buffalo Pet Products Inc. reported fourth-quarter net sales and net income increases of 11.3 percent and 261.1 percent, respectively, while full-year net sales were up 11.9 percent and net income rose by 45.7 percent.
The Wilton company’s CEO, Billy Bishop, said on a conference call that Blue Buffalo has become the “leader in wholesome natural pet food, the fastest growing segment of the $28 billion U.S. pet food market.” He added, however, that “We still have only a 6 percent share in the U.S. and feed less than 3 percent of pets, so Blue Buffalo has a tremendous opportunity to continue to grow in the U.S. as well as a fantastic opportunity internationally.”
For the quarter ended Dec. 31, Blue Buffalo posted net sales of $295 million and net income of $35 million, increases that the company attributed largely to higher net price realization and lower input costs. For the full-year, net sales were $1.15 billion and net income was $130 million.
The company noted that during the fourth quarter, it recorded a charge of $32 million to settle a class action lawsuit with its customers over advertising claims about natural ingredients in its products.
For the full year 2017, Blue Buffalo expects to deliver net sales between $1.24-1.27 billion.