Freshpet (FRPT) came out with quarterly earnings of $0.31 per share, beating the Zacks Consensus Estimate of $0.09 per share. This compares to loss of $0.06 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 244.44%. A quarter ago, it was expected that this seller of refrigerated fresh pet food would post a loss of $0.20 per share when it actually produced a loss of $0.15, delivering a surprise of 25%.Over the last four quarters, ...

Full Year 2023 Net Sales and Adjusted EBITDA Exceed Company GuidanceSixth Consecutive Year of >25% Net Sales GrowthProvides Full Year 2024 Outlook SECAUCUS, N.J., Feb. 26, 2024 (GLOBE NEWSWIRE) -- Freshpet, Inc. ("Freshpet" or the "Company") (NASDAQ:FRPT) today reported financial results for its fourth quarter and full year ended December 31, 2023. Fourth Quarter 2023 Financial Highlights Compared to Prior Year Period Net sales of $215.4 million, an increase of 29.9%Net income of $15.3 million, compared to ...

Market Presence and Sales - As of December 31, 2023, Freshpet's household penetration in the U.S. was approximately 11.5 million, with a target of reaching 20 million households by 2027[14]. - Freshpet operates in approximately 26,777 stores, with about 22% of these stores featuring second and third Freshpet Fridge placements[53]. - In 2023, Walmart accounted for 23.4% of Freshpet's net sales, while the largest distributor, Animal Supply Co., represented 9.0% of net sales[54]. - Freshpet's network includes approximately 26,777 retail locations, enhancing brand visibility and consumer engagement[63]. - The company has expanded into the UK market, selling products in approximately 544 stores, indicating growth in international operations[127]. Financial Performance - Net sales increased by $171.6 million, or 28.8%, to $766.9 million for the twelve months ended December 31, 2023, compared to the prior year, primarily driven by volume gains of 20%[188]. - Gross profit was $250.9 million, or 32.7% of net sales, for the twelve months ended December 31, 2023, an increase from $186.0 million, or 31.2% of net sales, in the prior year[189]. - Adjusted EBITDA was $66.6 million, or 8.7% of net sales, for the twelve months ended December 31, 2023, compared to $20.1 million, or 3.4% of net sales, in the prior year[198]. - The net loss decreased by $25.9 million to $33.6 million for the twelve months ended December 31, 2023, compared to a net loss of $59.5 million in the prior year[197]. - The company reported a net loss of $33.6 million for 2023, an improvement from a net loss of $59.5 million in 2022[206]. Manufacturing and Operations - Freshpet's manufacturing network includes three facilities, with the Ennis, Texas facility expected to complete its second phase by the end of Q3 2024[44]. - Approximately 99.1% of Freshpet's product volume was manufactured using Freshpet-owned equipment in 2023[45]. - Manufacturing capacity expansion is crucial; failure to align manufacturing capabilities with demand could materially affect business operations[104]. - The company's Freshpet Fridges are critical to success; any harm to their operating capacity could negatively impact brand reputation and sales[108]. Marketing and Brand Strategy - Freshpet's marketing strategy focuses on educating consumers about the benefits of fresh refrigerated pet food and increasing brand awareness through various channels[61]. - Freshpet aims to increase brand loyalty and consumer trial through effective marketing strategies and community engagement[64]. - The company emphasizes the importance of its trademarks and intellectual property in building brand recognition and competitive advantage[77]. Challenges and Risks - The pet food industry is highly competitive, with major competitors including Nestlé Purina, Mars Pet Care, and others, impacting market share[66]. - The company faces risks related to competition, including pricing pressures and the need for effective marketing to maintain market share[90]. - Input costs for ingredients are subject to volatility and shortages, which could adversely impact production schedules and profitability[105]. - Adverse weather conditions and natural disasters can disrupt operations, affecting ingredient supply and production schedules[107]. - The company may face product recalls or adverse publicity if products are alleged to cause injury or illness, which could lead to significant unexpected expenditures[99]. Employee and Corporate Governance - Freshpet employs 1,083 employees as of December 31, 2023, with a focus on diversity, equity, and inclusion in the workplace[71]. - The company faces challenges in attracting and retaining qualified employees, which could increase operational costs[115]. - Compliance with extensive government regulations may increase production costs and legal expenses[118]. Financial Instruments and Capital Structure - The company issued approximately $402.5 million in convertible notes in March 2023 to meet capital needs[212]. - The company has 48,263,097 shares of common stock outstanding as of December 31, 2023, with authorization to issue up to 200 million shares[146]. - The company has not declared or paid any cash dividends since becoming publicly traded in 2014 and does not anticipate doing so in the foreseeable future[165]. Cybersecurity and IT Risks - The company is subject to cybersecurity risks, with a dedicated information security organization in place to manage these threats[151]. - Cybersecurity risks are increasing, and breaches could lead to significant legal and financial exposure[135]. - Information technology systems are essential for operations, and failures could disrupt business processes and result in transaction errors[134].

Exhibit 99.1 Freshpet, Inc. Reports Fourth Quarter and Full Year 2023 Financial Results Full Year 2023 Net Sales and Adjusted EBITDA Exceed Company Guidance Sixth Consecutive Year of >25% Net Sales Growth Provides Full Year 2024 Outlook SECAUCUS, N.J. – February 26, 2024 – Freshpet, Inc. ("Freshpet" or the "Company") (Nasdaq: FRPT) today reported financial results for its fourth quarter and full year ended December 31, 2023. Fourth Quarter 2023 Net sales increased 29.9% to $215.4 million for the fourth quar ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-36729 FRESHPET, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 20-1884894 (State or other jurisdiction of incorporation or organization) (I.R.S. Emp ...

Financial Data and Key Metrics Changes - In Q2, net sales reached $183.3 million, representing a 26% increase year-over-year, with a net price mix up slightly more than 7% and volume growth around 18% [15][16] - Adjusted gross margin improved to 39.8%, up 110 basis points from the previous year, driven by better pricing and operational improvements [16][17] - Adjusted EBITDA for Q2 was $9 million, significantly exceeding initial expectations, with a total of $12 million in adjusted EBITDA year-to-date [20][21] Business Line Data and Key Metrics Changes - The Ennis Kitchen start-up is operational with one bag line and one roll line running 24/7, contributing to production efficiency and supply chain stability [3][4] - The company placed 1,385 new fridges in Q2, with expectations to install over 5,000 new fridges for the year, enhancing retail refrigerated space [5] Market Data and Key Metrics Changes - Nielsen measured dollar growth was up 23% year-over-year, with non-measured channels showing even stronger growth, contributing significantly to overall performance [16][50] - Household penetration increased by 10% year-over-year, with the buying rate for high-profit pet-owning households (HIPPOs) up 17% [79][105] Company Strategy and Development Direction - The company aims to make Freshpet accessible to a broader consumer base while focusing on operational improvements to restore margins and enhance returns on invested capital [2][14] - The strategic focus includes ramping up production in Ennis and expanding capacity to meet consumer demand without further dilution [33][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future gains as operational efficiencies improve, with expectations for continued strong growth driven by volume rather than pricing [4][23] - The company anticipates a positive trajectory for the remainder of the year, with adjusted EBITDA guidance raised to at least $55 million [30][31] Other Important Information - Recent board appointments include industry veterans with relevant expertise, enhancing governance and strategic direction [6][7][10] - The company has made significant investments in human capital, including the Freshpet Academy, to reduce turnover and build critical skills [11][12] Q&A Session Summary Question: Media spend efficiency and targeting - Management noted that media spending is more balanced this year, with a focus on both new and existing consumers, and highlighted strong performance from high-profit pet-owning households [45][47] Question: Unmeasured channel growth - Management confirmed that non-measured channel growth is strong, driven by club and e-commerce, and is expected to continue accelerating [53][56] Question: Pricing strategy and consumer behavior - Management indicated that consumers have adapted to previous price increases, and the company is focused on maintaining value while monitoring competitive pricing dynamics [94][133] Question: Volume acceleration drivers - Management attributed volume growth to improved in-stock conditions and effective media strategies, with expectations for continued acceleration in the second half of the year [123][129]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-36729 FRESHPET, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 20-1884894 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer ...

Financial Data and Key Metrics Changes - The company reported a net sales growth of 27% in Q1 2023, reaching $167.5 million, which aligns with the guidance provided for the quarter [21][26] - Adjusted EBITDA for Q1 was $3 million, significantly better than initial expectations, primarily due to strong operational performance in cost of goods sold (COGS) and logistics [22][29] - Adjusted gross margin was 38.5% in Q1, slightly above the previous year, driven by increased pricing and improvements in quality costs [27][29] Business Line Data and Key Metrics Changes - The pet specialty business saw a consumption growth rebound of 19% in Q1 compared to the prior year, indicating strong performance across channels [26][106] - The company added 369 net new stores and upgraded 241 stores to larger fridges in Q1, with plans for more fridge placements throughout the year [25][40] Market Data and Key Metrics Changes - Household penetration growth was reported at 7% over the past 52 weeks, with a buying rate growth of 28%, indicating solid loyalty among heavy users despite a 20% price increase [9][104] - Nielsen measured volume growth rate increased from 12% at the beginning of Q1 to around 16% by the end of the quarter, with expectations for continued growth into the high teens and low 20s by year-end [14][34] Company Strategy and Development Direction - The company is focused on improving operational efficiencies, particularly in logistics and quality, as part of its Fresh Future plan, which aims to enhance margins and support long-term growth [10][31] - Marketing strategies are being fully deployed for the first time in several years, with new advertising campaigns and updated packaging expected to resonate well with consumers [11][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing improvements in operations and the positive impact of investments made in training and facilities, particularly in Ennis [10][17] - The company anticipates that net sales growth will increasingly be driven by volume rather than pricing as the year progresses, with Q2 and Q3 expected to show mid-20s growth rates [13][14] Other Important Information - The company has a strong cash position, with $387 million in cash and short-term investments at the end of the quarter, which will support growth through 2024 [30] - The Ennis Kitchen startup is progressing well, with production ramping up and expected to unlock significant logistics savings [24][31] Q&A Session Summary Question: Can you unpack the guidance a little bit? - Management indicated that while pricing benefits will moderate, they expect volume growth to drive sales acceleration, particularly from heavy users [39][40] Question: What is the plan for attracting new users? - The strategy includes focusing on heavy users and expanding product offerings to appeal to a broader consumer base, while also enhancing advertising efforts [54][59] Question: How is the advertising spend expected to change? - Q2 advertising spending is projected to be slightly higher than Q1, with a significant portion allocated to the first half of the year [45][46] Question: What is the current status of household penetration? - Management noted that while household penetration has decreased, heavy users are increasing their buying rates, and efforts are being made to attract new users [110][120] Question: How are commodity input costs affecting margins? - Commodity costs are locked in at around 80%, with mid to upper single-digit inflation expected, allowing for potential margin expansion [125][126]

PERFORMANCE AND STRONG GROWTH $132.2 2022 2023 +27% +41% FRESHPET Q1 2023 ADJ. EBITDA ($ millions) 7 Q1 2023 EARNINGS PRESENTATION PARTIALLY OFFSET BY TRADE INVENTORY RE-FILL IN THE YA MegaChannel (xAOC+Pet Superstore) Certain statements in this presentation by Freshpet, Inc. (the "Company") constitute "forward-looking" statements, which include any statements related to the the Freshpet Kitchens Expansion, our long-term capacity planning, our net sales and Adjusted EBITDA guidance and the Company's general ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-36729 FRESHPET, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 20-1884894 (State or other jurisdiction of incorporation or organization) (I.R.S. Employe ...