Freshpet Inc ( (FRPT) ) has released its Q4 earnings. Here is a breakdown of the information Freshpet Inc presented to its investors.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Freshpet Inc., a company specializing in fresh, refrigerated pet food, operates in the pet food industry, emphasizing natural ingredients sourced locally and maintaining transparency and social responsibility throughout its processes. The latest earnings report for the fourth quarter and full year 2024 highlights significant financial improvements and strategic growth, showcasing Freshpet’s robust performance and optimistic future outlook.
Freshpet reported a substantial increase in net sales, with a 22% rise in the fourth quarter and a 27.2% increase for the full year 2024 compared to the previous year. The company achieved a net income of $18.1 million in the fourth quarter and $46.9 million for the full year, a significant turnaround from the net loss of $33.6 million in 2023. Notably, Freshpet’s gross margin rose to 40.6% for the year, with an adjusted gross margin reaching 46.5%.
The company also experienced a notable rise in adjusted EBITDA, reaching $52.6 million in the fourth quarter and $161.8 million for the full year. This growth was driven by increased sales volume and improved gross margins, despite higher SG&A expenses. Freshpet’s cash flow from operating activities more than doubled, indicating strong cash generation capabilities.
Looking ahead, Freshpet has provided optimistic guidance for 2025, forecasting net sales between $1.18 billion and $1.21 billion, and adjusted EBITDA of at least $210 million. The company is also updating its 2027 targets, reflecting increased confidence in achieving greater profit margins and sustained growth.
Freshpet’s management remains focused on transforming the pet food category while driving shareholder value through disciplined growth and profitability improvements. The company’s strategic initiatives and financial robustness suggest a promising trajectory, aiming to further solidify its position in the market.
