Freshpet reported strong financial performance for Q3 2024, marked by a 26.3% increase in net sales, reaching US$253.4 million. The company reported a net income of $11.9 million, a significant turnaround from the $7.2 million loss in the same quarter last year. Freshpet attributes this growth to higher sales volumes, lower input costs, and reduced quality control expenses, with a gross margin improvement to 40.4% from last year’s 33%.
Adjusted EBITDA reached $43.5 million, up from $23.2 million the prior year, showcasing Freshpet’s improved operational efficiency. Billy Cyr, CEO, expressed confidence in continued strong results, prompting the company to raise its full-year 2024 guidance to $975 million in net sales and at least $155 million in adjusted EBITDA. This upward revision reflects Freshpet's commitment to shareholder value and robust growth despite challenging market conditions.
"Our third quarter results demonstrate the strength and consistency of both net sales and profitability growth we have been striving to deliver," said Cyr. "We delivered our 25th consecutive quarter of greater than 25% year on year net sales growth and matched that with a very strong operating performance. This further strengthens our confidence in our ability to meet or exceed our 2027 goals."
For the first nine months of 2024, Freshpet saw a 29.2% rise in net sales to $712.5 million and generated $103.9 million in operating cash flow, reinforcing its financial stability and long-term capacity plans.
Outlook
For full year 2024, Freshpet is updating its guidance and now expects the following:
- Net sales of ~$975 million, an increase of ~27% from 2023, compared to at least $965 million in the previous guidance.
- Adjusted EBITDA of at least $155 million, compared to at least $140 million in the previous guidance.
- Capital expenditures of ~$180 million, compared to ~$200 million in the previous guidance.
According to Petfood Industry's Top Pet Food Companies, Freshpet is a U.S.-based manufacturer of fresh, refrigerated dog treats and food for dogs and cats. The company says all 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.
