Freshpet(US:FRPT) ZACKSยท2025-02-24 17:45Core Insights - Freshpet, Inc. reported fourth-quarter fiscal 2024 results with net sales meeting estimates but earnings per share (EPS) missing expectations, both metrics showing year-over-year growth [1][2] Financial Performance - EPS for the quarter was 36 cents, up from 31 cents year-over-year, but below the Zacks Consensus Estimate of 44 cents [2] - Consolidated net sales reached $262.7 million, nearly in line with the Zacks Consensus Estimate of $263 million, reflecting a 22% increase from $215.4 million in the same quarter last year, driven by a 20.7% gain in sales volume [3] - Adjusted gross profit increased by 42.6% year-over-year to $126.3 million, with adjusted gross margin expanding by 700 basis points to 48.1% compared to 41.1% in the fourth quarter of fiscal 2023, attributed to lower input costs and better plant cost leverage [4] - Adjusted SG&A expenses rose 28.7% year-over-year to $73.6 million, representing 28% of net sales, an increase of 140 basis points [4] - Adjusted EBITDA was $52.6 million, up from $31.3 million in the prior year, driven by higher gross margins despite increased SG&A expenses [5] Financial Health - At the end of the quarter, Freshpet had cash and cash equivalents of $268.6 million, total debt of $395.2 million, and total shareholders' equity of $1,055.4 million [6] - For the year ended December 31, 2024, net cash provided by operating activities was $154.3 million, with capital expenditures totaling $187.1 million; management expects 2025 capital expenditures to be around $250 million [6] Future Outlook - For 2025, management anticipates net sales between $1.18 billion and $1.21 billion, indicating a growth of 21% to 24% from 2024, with adjusted EBITDA projected at $210 million compared to $161.8 million in 2024 [7] - Freshpet shares experienced a decline of 5.7% recently, with a 35.2% drop over the past three months, contrasting with a 4.5% decline in the industry [7]