Freshpet Inc ( (FRPT) ) has released its Q3 earnings. Here is a breakdown of the information Freshpet Inc presented to its investors.
Freshpet Inc., a company specializing in producing fresh, refrigerated pet food using natural ingredients, continues to strengthen its position in the pet food industry with its unique approach to pet nutrition. The company operates in the pet food sector and is known for its commitment to providing fresh, real food for pets in the United States, Canada, and Europe.
In its third-quarter 2024 earnings report, Freshpet Inc. announced impressive financial results, marking the 25th consecutive quarter of significant year-over-year net sales growth exceeding 25%. The company highlighted strong operating performance, which contributed to substantial margin expansion and cash generation, prompting an upward revision of its 2024 net sales and adjusted EBITDA guidance.
Freshpet reported a 26.3% increase in net sales to $253.4 million for the third quarter of 2024, primarily driven by volume gains. The company achieved a net income of $11.9 million, a significant improvement from a net loss of $7.2 million in the previous year. Additionally, Freshpet’s gross margin rose to 40.4% from 33.0%, and its adjusted EBITDA saw a substantial increase to $43.5 million from $23.2 million in the prior year period. The first nine months of 2024 also reflected strong financial performance with a notable rise in net sales and net income.
The company’s strategic focus on reducing input and logistics costs contributed to improved profitability, despite an increase in SG&A expenses. Freshpet is leveraging its robust balance sheet to support its long-term capacity expansion plans, ensuring continued growth and shareholder value.
Looking ahead, Freshpet remains optimistic about its growth prospects, as evidenced by the upward revision of its full-year 2024 guidance. The company now expects net sales to reach approximately $975 million, reflecting a 27% increase from 2023, and adjusted EBITDA to be at least $155 million. The positive outlook demonstrates Freshpet’s confidence in its business model and ongoing commitment to serving the pet community with nutritious, fresh food options.
