Total net sales climbed 117% to $131.38 million. This reflects growth in existing and new retail partners, primarily within the company’s distributed products, and the expansion of its product and services offerings. Product sales jumped 79% to $108.5 million and Services segment revenue was $22.9 million.
Gross profit jumped 93% and gross margin was 18.4% for the third quarter. The company continued to capitalize on opportunities to grow with its animal health partners and drove incremental sales of distributed products. This resulted in a shift of product sales mix but had no effect on gross profit earned.
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Looking ahead in the full year 2018, PetIQ lifted its net sales outlook to about $515 million from the prior forecast of about $500 million. Adjusted EBITDA estimates are reiterated in the range of $40 million to $45 million.
The company completed the strategic acquisition of HBH Enterprises LLC on October 17, 2018, a pet health and wellness product manufacturer. The consideration consisted of $3 million in cash, which includes a $2.5 million repayment of debt and the issuance of 400,000 shares of PetIQ Class B common stock. PetIQ does not expect the transaction to have a material impact on the fourth quarter of 2018 net sales and profitability.
Shares of PetIQ ended Tuesday’s regular session down 5.36% at $31.27 on the Nasdaq. The stock has risen over 43% in the year so far and over 73% in the past year.