Whole Earth Brands Stock Falls As Q2 EPS Misses Estimate; Reiterates FY21 Outlook

Whole Earth Brands Inc FREE reported second-quarter FY21 consolidated product revenue growth of 89.3% year-on-year, to $126.49 million, beating the analyst consensus of $124.04 million.
On a proforma basis, organic product revenue decreased 1.4% or decreased 3.8% on a constant currency basis.
Product revenues from Branded CPG segment increased 130.0%, and the Flavors & Ingredients segment rose 15.3%.
The gross profit increased 55.6% Y/Y to $41.4 million with a gross profit margin of 32.7% versus 39.8% last year.
The operating margin was 4.7%, and operating income for the quarter of $6 million.
The company held $24.1 million in cash and equivalents as of June 30, 2021.
EPS of $0.09 missed the analyst consensus of $0.20.
"The successful first quarter integration of our Swerve and Wholesome acquisitions has generated notable momentum as we focus on growing our global brand portfolio and further strengthening operations across the Company," said CEO Albert Manzone.
Outlook: Whole Earth Brands reiterated FY21 guidance. Net Product Revenues of $493 million - $505 million, versus the consensus of $492.19 million. The adjusted gross profit margin of 34% - 35%, and Adjusted EBITDA of $82 million - $85 million.
Price action: FREE shares traded lower by 4.27% at $12.56 on the last check Monday.