Freshpet(FRPT) - 2024 Q4 - Annual Results

Financial Performance - Net sales for Q4 2024 increased by 22.0% to $262.7 million, up from $215.4 million in the prior year period, primarily driven by volume gains of 20.7%[4] - Gross profit for Q4 2024 was $111.6 million, representing a gross margin of 42.5%, compared to $74.6 million and 34.6% in the prior year period[5] - Full year 2024 net sales reached $975.2 million, a 27.2% increase from $766.9 million in the prior year, driven by volume gains of 26.1%[7] - Full year 2024 net income was $46.9 million, a significant improvement from a net loss of $33.6 million in the prior year[8] - Adjusted EBITDA for Q4 2024 was $52.6 million, compared to $31.3 million in the prior year period, reflecting strong operational performance[7] - Net sales for the year ended December 31, 2024, increased to $975.2 million, a 27.2% increase from $766.9 million in 2023[27] - Gross profit for the year ended December 31, 2024, was $396.0 million, representing a 58.0% increase from $250.9 million in 2023[27] - Adjusted gross profit as a percentage of net sales improved to 46.5% for the year ended December 31, 2024, compared to 40.0% in 2023[30] - The company reported a net income of $46.9 million for the year ended December 31, 2024, compared to a net loss of $33.6 million in 2023[29] - Adjusted EBITDA for Q4 2024 was $52,633,000, a 67.8% increase from $31,328,000 in Q4 2023[32] - Adjusted EBITDA as a percentage of net sales increased to 20.0% in Q4 2024 from 14.5% in Q4 2023[32] Future Projections - For full year 2025, the company expects net sales in the range of $1.18 billion to $1.21 billion, representing a 21% to 24% increase from 2024[16] - The company anticipates Adjusted EBITDA of at least $210 million for full year 2025[16] - The company is updating its long-term guidance for 2027, now expecting an Adjusted Gross Margin of 48%, up from 45% previously[16] Expenses and Liabilities - Selling, general and administrative expenses (SG&A) for Q4 2024 were $92.2 million, an increase from $59.7 million in the prior year period, with SG&A as a percentage of net sales rising to 35.1%[6] - The company’s selling, general, and administrative expenses for the year ended December 31, 2024, were $358.0 million, up from $281.3 million in 2023[27] - SG&A expenses for Q4 2024 were $92,223,000, up from $59,680,000 in Q4 2023, representing a 54.7% increase[31] - Adjusted SG&A expenses as a percentage of net sales improved to 28.0% in Q4 2024 from 26.6% in Q4 2023[31] - Total liabilities rose slightly to $519.5 million in 2024, compared to $511.0 million in 2023[25] Cash and Assets - As of December 31, 2024, the company had cash and cash equivalents of $268.6 million and $395.2 million of debt outstanding[9] - Cash and cash equivalents decreased to $268.6 million as of December 31, 2024, from $296.9 million at the end of 2023[29] - Total assets increased to $1.575 billion as of December 31, 2024, up from $1.464 billion in 2023[25] Investments and Other Costs - The company invested $187.1 million in property, plant, and equipment during the year ended December 31, 2024[29] - Depreciation and amortization expense for the year ended December 31, 2024, was $70,803,000, up from $57,058,000 in 2023[32] - Non-cash share-based compensation for the year ended December 31, 2024, was $51,807,000, compared to $24,936,000 in 2023[32] - The company incurred $588,000 in losses on the disposal of equipment for the year ended December 31, 2024[31] - The implementation of an ERP system incurred costs of $465,000 in Q4 2023[33] - Advisory fees related to shareholder activism defense engagement amounted to $8,177,000 in 2023[33]