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Jun 30, 2021
Freshpet Q2 2021 Earnings Report
Freshpet's second quarter growth rate accelerated, demonstrating the potential of the brand and the potency of their Feed the Growth strategy.
Key Takeaways
Freshpet reported a net sales increase of 35.8% to $108.6 million for the second quarter of 2021. However, the company experienced a net loss of $7.5 million compared to a net income of $0.2 million in the prior year period, and an Adjusted EBITDA of $10.9 million compared to $11.2 million in the prior year period. The company raised its full year 2021 net sales guidance to exceed $445.0 million.
Net sales increased by 35.8% to $108.6 million.
Net loss was $7.5 million, compared to a net income of $0.2 million in the prior year.
Adjusted EBITDA was $10.9 million, compared to $11.2 million in the prior year.
The company expects to exceed net sales of $445.0 million for the full year 2021.
Freshpet
Freshpet
Forward Guidance
For the full year 2021, the Company updated its net sales guidance and expects to exceed net sales of $445.0 million, an increase of ~ 40% from 2020, and to exceed Adjusted EBITDA of $61.0 million, an increase greater than 30% from 2020.
Positive Outlook
- Expects to exceed net sales of $445.0 million, an increase of ~ 40% from 2020
- Anticipates strong brand potential and effective Feed the Growth strategy.
- Expects distribution gains and innovation to drive net sales.
- Aims to change the way more people nourish their pets forever.
- Expects to exceed Adjusted EBITDA of $61.0 million, an increase greater than 30% from 2020
Challenges Ahead
- Facing inflation in beef costs.
- Experiencing increased processing costs as production capacity expands.
- SG&A increased to 45.6% for the second quarter of 2021 compared to 42.1% in the prior year period.
- Increased logistics costs as a percentage of net sales.
- Cannot provide a reconciliation between its forecasted adjusted EBITDA and net income metrics without unreasonable effort due to the unavailability of reliable estimates for certain components of net income.