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Mar 31, 2024
Freshpet Q1 2024 Earnings Report
Freshpet's Q1 2024 results showcased strong volume-based growth and profitability improvements driven by lower costs.
Key Takeaways
Freshpet reported a strong first quarter with a 33.6% increase in net sales, driven by volume gains. The company's profitability improved significantly, with net income reaching $18.6 million compared to a net loss in the prior year. Adjusted EBITDA also saw substantial growth due to increased gross profit and operational efficiencies.
Net sales increased by 33.6% to $223.8 million, driven by a 30.6% volume gain.
Net income was $18.6 million, a significant improvement from the prior year's net loss of $24.8 million.
Adjusted EBITDA increased to $30.6 million, compared to $3.0 million in the prior year period.
Gross profit margin improved due to better leverage on plant expenses, reduced quality costs, and lower input costs.
Freshpet
Freshpet
Forward Guidance
For the full year 2024, Freshpet expects net sales of at least $950 million and adjusted EBITDA of at least $120 million, with capital expenditures around $210 million.
Positive Outlook
- Net sales of at least $950 million, an increase of at least 24% from 2023.
- Adjusted EBITDA of at least $120 million, compared to a previous range of $100 to $110 million.
- Capital expenditures of ~$210 million, unchanged from the previous guidance.
- Strong first quarter results provide solid evidence that Freshpet can deliver its long-term financial goals.
- The company's focus is now on delivering consistently strong performance.
Challenges Ahead
- The company does not provide guidance for net income.
- Unavailability of reliable estimates for certain components of net income.
- The timing and amount of costs of goods sold and selling, general and administrative expenses are not within the company's control.
- These items may vary greatly between periods and could significantly impact future results.
- Forward-looking statements involve certain risks and uncertainties.