Company Performance - Freshpet's stock closed at $78.89, reflecting a +1.87% change from the previous day, outperforming the S&P 500's gain of 0.55% [1] - Over the past month, Freshpet's shares have decreased by 2.74%, underperforming the Consumer Staples sector's gain of 1.91% and the S&P 500's gain of 6.29% [1] Earnings Forecast - Freshpet is expected to report an EPS of $0.11, indicating a significant growth of 466.67% compared to the same quarter last year [2] - The revenue forecast for the upcoming quarter is $268.8 million, representing a 14.26% increase year-over-year [2] - For the full year, the Zacks Consensus Estimates predict earnings of $1.39 per share and revenue of $1.13 billion, reflecting year-over-year changes of +80.52% and +15.88%, respectively [3] Analyst Estimates and Rankings - Recent adjustments to analyst estimates for Freshpet indicate positive sentiment regarding the company's business operations [4] - The Zacks Rank system, which incorporates estimate changes, currently ranks Freshpet at 3 (Hold) [6] - The Zacks Consensus EPS estimate has increased by 0.29% over the past month [6] Valuation Metrics - Freshpet has a Forward P/E ratio of 55.81, significantly higher than the industry average of 16.57, indicating a premium valuation [7] - The current PEG ratio for Freshpet is 1.17, compared to the industry average of 1.67, suggesting a more favorable growth outlook relative to its price [8] Industry Context - The Food - Miscellaneous industry, part of the Consumer Staples sector, holds a Zacks Industry Rank of 165, placing it in the bottom 33% of over 250 industries [9] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9]

Pet food is displayed in a refrigerated cases at the Freshpet Inc. production facility in Bethlehem, ... More Pennsylvania, U.S., on Monday, Nov. 9, 2015. Freshpet produces the only industrial refrigerated pet food on the market, which is made with only fresh ingredients and eschews preservatives. Sales of premium dog food have surged 45 percent to $10.5 billion in the U.S. since 2009 and now account for more than half of the market. Photographer: Chris Goodney/Bloomberg2015 Bloomberg Finance LP I originall ...

Freshpet (FRPT) 2025 Conference Summary Company Overview - Freshpet is a leader in fresh pet food in the United States, consistently growing at double digits and tracking to over $1 billion in fiscal 2025 revenue [1] Industry Insights - The pet food industry is experiencing challenges, with economic uncertainty affecting consumer behavior, particularly in decisions related to pet ownership [2][5] - Long-term tailwinds for the industry remain strong, as consumers continue to prioritize better nutrition for themselves and their pets [3][4] Key Financial Metrics - Freshpet's growth rate for the second quarter is approximately 13%, with steady performance observed [7] - The company adjusted its net sales target to a growth range of 15% to 18% and EBITDA guidance from $190 million to $210 million [29] Strategic Initiatives - Freshpet is focusing on deepening consumer insights to target "Most Valuable Pet Parents" (MVPs), a demographic that shows high interest in purchasing Freshpet products [11][15] - The company has identified 2 million MVPs currently, with a potential market of over 7 million [15] - Initiatives include enhancing media targeting, adjusting creative strategies, and improving distribution points to better serve MVPs [15][36] Competitive Advantages - Freshpet differentiates itself through its unique product offerings, manufacturing expertise, and a robust refrigerated supply chain [22][23] - The company is investing in new manufacturing technology to improve efficiency and product variety, with a new production line expected to start in Q4 [26][27] Marketing and Advertising Strategy - Freshpet is shifting its marketing focus towards digital platforms and streaming services to better engage with consumers [69][70] - The company is experiencing a breakdown in the correlation between advertising spend and sales, attributed to economic stress among consumers [60][61] Distribution Strategy - Freshpet is expanding its distribution network, focusing on both retail and e-commerce channels, with a significant increase in e-commerce sales observed [49] - The company aims to leverage its existing distribution points to enhance online shopping experiences [49] Future Outlook - Freshpet remains committed to its long-term financial targets, including a gross margin of 48% and EBITDA of 22% [80] - The company is optimistic about its ability to adapt to market conditions and maintain growth, despite current challenges [81] Conclusion - Freshpet is positioned for significant growth in the pet food industry, with a strong focus on innovation, consumer engagement, and strategic marketing initiatives [18][19][107]

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Core Insights - Freshpet, Inc. reported mixed first-quarter 2025 results, with net sales exceeding estimates but earnings per share falling short and decreasing year over year. The company has also revised its 2025 guidance downward [1][2][8]. Financial Performance - Earnings per share for the quarter were 9 cents, down from 21 cents in the same quarter last year, missing the Zacks Consensus Estimate of 13 cents [2]. - Consolidated net sales reached $263.2 million, surpassing the Zacks Consensus Estimate of $259 million, and increased by 17.6% from $223.8 million in the prior year, driven by a 14.9% increase in volume and a 2.7% improvement in price/mix [2]. - Adjusted gross profit rose 18.5% year over year to $120.2 million, with an adjusted gross margin expanding by 40 basis points to 45.7% [3]. - Adjusted SG&A expenses increased 19.5% year over year to $84.7 million, representing 32.2% of net sales, primarily due to higher media spending [4]. - Adjusted EBITDA was $35.5 million, up 16.2% from $30.6 million in the previous year, attributed to higher adjusted gross profit despite increased SG&A expenses [5]. Financial Health - At the end of the quarter, Freshpet had cash and cash equivalents of $243.7 million and total debt of $395.7 million [7]. - Cash provided by operations was $4.8 million, a decrease of $0.6 million from the same period last year, with capital spending for the quarter at $26.5 million [7]. 2025 Guidance - The company revised its 2025 guidance, now expecting net sales of $1.12-$1.15 billion, indicating a 15-18% increase from 2024, down from the previous estimate of $1.18-$1.21 billion [8]. - Adjusted EBITDA is now projected to be $190-$210 million, reduced from the earlier estimate of $210 million, compared to adjusted EBITDA of $161.8 million in 2024 [8]. Stock Performance - Over the past three months, Freshpet's stock has declined by 46.2%, contrasting with a 1% growth in the industry [10].

Financial Performance - Net sales for the three months ended March 31, 2025, increased to $263,249,000, up from $223,849,000 in the same period of 2024, representing an increase of approximately 17.7%[14] - Gross profit for the same period was $103,788,000, compared to $88,158,000 in 2024, reflecting a gross margin improvement[14] - The company reported a net loss attributable to common stockholders of $12,697,000 for Q1 2025, compared to a net income of $18,602,000 in Q1 2024[14] - For the three months ended March 31, 2025, net sales reached $263,249,000, an increase of 17.7% compared to $223,849,000 for the same period in 2024[55] - Consolidated net loss for the quarter was $12,697 million, a significant decline from a net income of $18,602 million in the prior year[107] Expenses - The company incurred selling, general, and administrative expenses of $115,285,000 in Q1 2025, compared to $79,695,000 in Q1 2024, indicating a significant increase of approximately 44.7%[14] - The company reported a depreciation and amortization expense of $21,827,000 for Q1 2025, compared to $15,902,000 in Q1 2024, an increase of approximately 37.2%[19] - Input costs increased to $77,087 million from $69,824 million, reflecting a rise of 10.2% year-over-year[107] - Media costs rose to $39,791 million, up 24.0% from $32,090 million in the previous year[107] - Interest expense for the quarter was $3,459 million, up from $3,060 million, indicating a 13.1% increase[107] Assets and Liabilities - Total current assets decreased to $405,392,000 as of March 31, 2025, from $436,998,000 at the end of 2024, a decline of approximately 7.2%[11] - Total liabilities decreased slightly to $509,535,000 as of March 31, 2025, from $519,518,000 at the end of 2024[11] - Cash and cash equivalents at the end of Q1 2025 were $243,732,000, down from $268,633,000 at the end of 2024, a decrease of about 9.3%[19] - As of March 31, 2025, net inventories increased to $82,017 thousand from $80,794 thousand as of December 31, 2024, reflecting a growth of 1.5%[58] - Property, plant, and equipment, net, rose to $1,082,203 thousand as of March 31, 2025, compared to $1,065,869 thousand as of December 31, 2024, indicating an increase of 1.5%[60] Investments and Financing - The company issued $402.5 million of 3.00% Convertible Senior Notes in March 2023, which are accounted for as a single liability measured at amortized cost[33][34] - The carrying value of the convertible notes as of March 31, 2025, is $395,698 thousand, with a fair value of $589,019 thousand[70] - The effective interest rate for the convertible notes is 3.59%, with total interest expense for the three months ended March 31, 2025, amounting to $3,554 thousand[69][71] - The company entered into capped call transactions using $66,211 thousand of the net proceeds from the convertible notes to mitigate potential dilution[72] Market and Product Development - Freshpet continues to focus on expanding its market presence in the U.S., Canada, and other international markets, targeting major retail classes including Grocery and Pet Specialty[21] - The company is actively investing in new product development and technology to enhance its offerings in the natural fresh meals and treats segment for pets[21] - Sales from the grocery, mass, international, and digital channels amounted to $215,156,000, up from $184,429,000, reflecting a growth of 16.6%[55] - The pet specialty and club retailers generated sales of $48,093,000, which is a 22% increase from $39,420,000 in the prior year[55] Legal and Regulatory Matters - The company is involved in legal claims, including a breach of contract claim with Phillips Feed Service, with potential damages exceeding $8,300 thousand[97] Other Financial Information - The company maintains a full valuation allowance against its deferred tax assets as of December 31, 2024, due to the likelihood of non-realization[42][43] - The company has one operating and reportable segment, with financial information reviewed on a consolidated basis for resource allocation and performance evaluation[25] - The company did not identify any recognized or unrecognized subsequent events that require adjustment or disclosure in the financial statements[110] - The percentage of consolidated revenue recognized in Europe for the quarter was less than 1%[182] - The company is exposed to fluctuations in foreign exchange rates, particularly in the British pound sterling, Euro, and Canadian Dollar[182] - The company has not entered into any forward exchange contracts as of March 31, 2025[183]

Freshpet (FRPT) Q1 2025 Earnings Call May 05, 2025 08:00 AM ET Company Participants Rachel Ulsh - VP - IR & Corporate CommunicationsBilly Cyr - CEO & Board of DirectorTodd Cunfer - Chief Financial OfficerKen Goldman - Managing DirectorScott Morris - Co-Founder & PresidentBill Chappell - Managing DirectorRobert Moskow - Managing Director Jon Andersen - Partner - Equity ResearchKaumil Gajrawala - Managing Director Conference Call Participants Peter Benedict - Senior Research AnalystBrian Holland - MD - Resear ...

Freshpet (FRPT) came out with quarterly earnings of $0.09 per share, missing the Zacks Consensus Estimate of $0.13 per share. This compares to earnings of $0.21 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -30.77%. A quarter ago, it was expected that this seller of refrigerated fresh pet food would post earnings of $0.44 per share when it actually produced earnings of $0.36, delivering a surprise of -18.18%.Over the last fo ...

Financial Data and Key Metrics Changes - First quarter net sales were $263.2 million, up approximately 18% year over year, primarily driven by volume growth [19][25] - Adjusted gross margin in the first quarter was 45.7%, compared to 45.3% in the prior year period [19][26] - Adjusted EBITDA in the first quarter was $35.5 million, up approximately $5 million or 16% year over year [19][28] - Capital expenditures for the first quarter were $26.5 million, with cash on hand of $243.7 million at the end of the quarter [28] Business Line Data and Key Metrics Changes - The company signed a new distribution agreement with Pet Food Experts, which is expected to improve growth moving forward [19] - The total e-commerce business was up 43% in the quarter, indicating strong performance in online sales [12] - The company has a 96% market share within the gently cooked fresh frozen branded dog food segment [21] Market Data and Key Metrics Changes - Freshpet competes in the $54 billion U.S. pet food category, holding a 3.5% market share within the $37 billion U.S. dog food and treats segment [20] - Household penetration as of March 30 was 14.1 million households, up 13% year over year [22] - The average buy rate was $110, up 6% year over year [22] Company Strategy and Development Direction - The company plans to adapt its strategies to target higher-income consumers through increased advertising investment and tailored media strategies [9] - Freshpet will launch a new entry price point bag product under the Freshpet Complete Nutrition label to attract cost-conscious consumers [10] - The company aims to balance capacity and organizational capability investments with anticipated demand to meet long-term margin and cash generation targets [11] Management's Comments on Operating Environment and Future Outlook - Management noted a significant shift in the macro environment impacting growth, but Freshpet continues to outperform the category across all demographics [5] - The company expects net sales for 2025 to be between $1.12 billion and $1.15 billion, representing approximately 15% to 18% growth year over year [13][29] - Management remains optimistic about long-term growth potential despite current economic uncertainties, believing there will be pent-up demand for pets when conditions improve [15][34] Other Important Information - The company is monitoring tariffs closely, with only 5% of U.S. COGS coming from imported raw materials, minimizing the impact on the P&L [32] - Capital expenditures are projected to be approximately $225 million for the year, down from previous estimates [33] Q&A Session Summary Question: Updated guidance range in light of economic conditions - Management considered various scenarios and believes the current consumer environment will continue for the balance of the year, but is prepared to take actions if conditions worsen [36][39] Question: Incremental changes in value products and marketing strategies - The company is accelerating plans to improve affordability and mainstream the brand, focusing on media targeting and creative adjustments [45][46] Question: Market progression and growth challenges - Freshpet is outperforming the category across income groups, but consumer uncertainty is causing hesitance in trading up to premium pet food [56][58] Question: Inventory health and destocking risks - Inventory across most channels is in good shape, with no significant destocking issues expected [84][86] Question: Contingency plans if growth slows - The company has flexibility to adjust capital expenditures and staffing of production lines based on growth performance [94][96]

Q1 2025 Earnings May 5, 2025 Q1 2025 Earnings Presentation 1 Forward Looking Statements & Non-GAAP Measures FORWARD-LOOKING STATEMENTS Certain statements in this presentation by Freshpet, Inc. (the "Company") constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on our current expectations and assumptions. These include statements related to the expected impact to our growth plans of current macroeconomic dynamics and our plans to de ...