Freshpet(FRPT) ZACKS·2025-05-06 17:30Core 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].