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Sep 30, 2022
Freshpet Q3 2022 Earnings Report
Freshpet reported strong topline growth and advanced its operational improvement plan to drive margin expansion. The company reduced its 2022/2023 capital spending guidance and reiterated its full-year underlying guidance.
Key Takeaways
Freshpet reported a 40.7% increase in net sales to $151.3 million for the third quarter of 2022. However, the company experienced a net loss of $18.4 million, compared to a net loss of $2.1 million in the prior year. Adjusted EBITDA was $3.5 million, down from $13.5 million in the prior year.
Net sales increased by 40.7% to $151.3 million.
Net loss was $18.4 million, compared to a net loss of $2.1 million in the prior year.
Adjusted EBITDA was $3.5 million, compared to $13.5 million in the prior year.
The company is executing a plan to address cost challenges and improve margins.
Freshpet
Freshpet
Forward Guidance
For full year 2022, the Company reiterates its full year underlying guidance on Net Sales and Adjusted EBITDA.
Positive Outlook
- Net sales of >$575 million, an increase of ~35% from 2021
- Adjusted EBITDA of >$15 million, which is changed from prior guidance only in that it does not add back approximately $29.0 million in plant start-up and $4.0 million of launch expenses for the full year that were added back under the former methodology of calculating Adjusted EBITDA; other than the altered calculation, there is no change in the underlying projected Adjusted EBITDA.
- Capital expenditures for 2022 is now anticipated to be approximately $290 million, reflecting a reduction of $30 million from prior forecast.
- The Company has also refined its 2023 capital expenditure outlook, which is now anticipated to be approximately $230 million, reflecting a reduction of approximately $70 million from prior forecast.