Freshpet, Inc. Reports Fourth Quarter and Full Year 2024 Financial Results

Core Insights - Freshpet, Inc. reported a breakout year in fiscal 2024, achieving significant net sales growth and profit improvements, including positive net income for the first time [3][8] - The company anticipates being free cash flow positive by 2026 and has raised long-term profit margin targets due to operational efficiencies [3][17] - Freshpet's strong performance is attributed to volume gains and improved gross margins, driven by lower input costs and better plant expense leverage [4][11] Financial Highlights for Q4 2024 - Net sales increased by 22.0% to $262.7 million compared to $215.4 million in the prior year [4][8] - Gross profit reached $111.6 million, representing a gross margin of 42.5%, up from 34.6% in the prior year [5][8] - Adjusted EBITDA for Q4 2024 was $52.6 million, compared to $31.3 million in the prior year [9][8] Financial Highlights for Full Year 2024 - Full year net sales rose by 27.2% to $975.2 million, driven by volume gains of 26.1% [10][8] - Gross profit for the year was $396.0 million, with a gross margin of 40.6%, up from 32.7% in the previous year [11][8] - Net income improved to $46.9 million from a net loss of $33.6 million in the prior year [13][8] SG&A and Adjusted Metrics - Selling, general and administrative expenses (SG&A) for Q4 2024 were $92.2 million, up from $59.7 million in the prior year, with SG&A as a percentage of net sales increasing to 35.1% [6][8] - Adjusted SG&A for Q4 2024 was $73.6 million, or 28.0% of net sales, compared to 26.6% in the prior year [6][8] - Adjusted Gross Profit for the full year was $453.5 million, or 46.5% of net sales, compared to 40.0% in the prior year [11][8] Cash Flow and Balance Sheet - Cash provided by operating activities for the year was $154.3 million, an increase of $78.3 million compared to the prior year [8][15] - As of December 31, 2024, the company had cash and cash equivalents of $268.6 million and $395.2 million in outstanding debt [15][8] 2025 and 2027 Outlook - For full year 2025, Freshpet expects net sales in the range of $1.18 billion to $1.21 billion, representing a growth of 21% to 24% from 2024 [17][18] - The company anticipates Adjusted EBITDA of at least $210 million for 2025 [18][8] - Long-term guidance for 2027 remains unchanged with expected net sales of $1.8 billion [17][8]