Adapted from a press release:
Frozen pet food company Freshpet’s net sales reached US$183.3 million in its second quarter ended June 30, 2023. Freshpet net sales increased 25.6% over the same period in 2022, when net sales stood at US$146.0 million. Net loss relative to the prior year’s period to US$17.0 million compared to US$20.6 million. Freshpet’s net sales for the second quarter of 2023 were driven by both velocity gains, and higher pricing. The decrease in net loss was due to contribution profit from higher sales, partially offset by increased media spending of US$3.2 million, higher depreciation and increased unabsorbed plant cost.
"The Freshpet business has real momentum,” Billy Cyr, Freshpet chief executive officer, said in a press release. “In the second quarter, we delivered strong volume and net sales growth, and significant improvements in our operating performance, particularly in quality and logistics, which is the basis for increasing our 2023 adjusted EBITDA guidance today. With a strengthened organization in place, accelerating household penetration growth, record levels of new fridge placements, and a successful start-up of the Ennis Kitchen, we are well-positioned to fulfill the long-term potential of Freshpet and change the way people nourish their pets forever."
Gross profit was US$59.2 million, or 32.3% as a percentage of net sales, for the second quarter of 2023, compared to US$51.1 million, or 35.0% as a percentage of net sales, in the prior year period. The decrease in reported gross profit as a percentage of net sales was primarily due to increased depreciation expense associated with the Company's capacity expansion, unabsorbed plant cost and increased share-based compensation, partially offset by reduced input and quality cost as a percentage of net sales. For the second quarter of 2023, Adjusted Gross Profit was US$73.0 million, or 39.8% as a percentage of net sales, compared to US$56.5 million, or 38.7% as a percentage of net sales, in the prior year period.
About Freshpet
Freshpet is a U.S.-based manufacturer of fresh, refrigerated dog treats and food for dogs and cats, according to Petfood Industry’s Top Companies Current Data. The company says all of its meat is 100% farm-raised. In 2022, the company's sales grew by 39.9%, and the company is investing in increased manufacturing capacity for further growth. Freshpet’s annual revenue in 2022 reached US$595,300,000.
