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Jun 30, 2020
Freshpet Q2 2020 Earnings Report
Reported financial results with sales growth driven by velocity, innovation, and distribution gains and a sharp improvement in bottom line.
Key Takeaways
Freshpet reported a strong second quarter with net sales increasing by 33.2% to $80.0 million and net income of $0.2 million, compared to a net loss of $5.7 million in the prior year period. Adjusted EBITDA increased significantly to $11.2 million. The company raised its full year 2020 outlook, expecting to exceed net sales of $320.0 million and Adjusted EBITDA of $46.0 million.
Net sales increased by 33.2% to $80.0 million compared to the prior year period.
Net income was $0.2 million, a significant improvement from the prior year net loss of $5.7 million.
Adjusted EBITDA increased by 833.3% to $11.2 million.
The company raised its full year 2020 outlook for net sales and Adjusted EBITDA.
Freshpet
Freshpet
Forward Guidance
The Company increased its net sales and Adjusted EBITDA outlook compared to the prior year. The Company now expects to exceed net sales of $320.0 million, an increase greater than 30% from 2019, and to exceed Adjusted EBITDA of $46.0 million, an increase greater than 57% from 2019.
Positive Outlook
- Net sales to exceed $320.0 million, an increase greater than 30% from 2019.
- Reflects an increase from prior guidance of net sales to exceed $310.0 million.
- Adjusted EBITDA to exceed $46.0 million, an increase greater than 57% from 2019.
- Reflects an increase from prior guidance of Adjusted EBITDA to exceed $44.0 million.
- Guidance assumes that the macroeconomic environment progresses as it has for the last month or two.
Challenges Ahead
- Guidance assumes that there are no additional, significant disruptions to the supply chain.
- Guidance assumes that there are no significant disruptions to its customers.
- Guidance assumes that there are no significant disruptions to consumers.
- Guidance assumes no issues from an adverse macroeconomic environment.
- Guidance assumes no issues from increased social unrest.