Business
Freshpet, Inc. Reports First Quarter 2023 Financial Results
Continued Strong Topline GrowthStrong operating performance drove Adjusted EBITDA improvementRe-affirms net sales & Adjusted EBITDA guidance SECAUCUS, N.J.,
About this update from Freshpet, Inc.
[{"type":"text","content":"Continued Strong Topline GrowthStrong operating performance drove Adjusted EBITDA improvementRe-affirms net sales & Adjusted EBITDA guidance SECAUCUS, N.J., May 08, 2023 (GLOBE NEWSWIRE) -- Freshpet, Inc. (“Freshpet” or the “Company”) (Nasdaq: FRPT) today reported financial results for its first quarter ended March 31, 2023. First Quarter 2023 Financial Highlights Compared to Prior Year Period Net sales of $167.5 million, an increase of 26.7%Net loss of $24.8 million, compared with prior year net loss of $17.5 millionAdjusted EBITDA of $3.0 million, compared to prior year of $(0.3) million.1 \"We are off to a very strong start to 2023 behind our recently launched Fresh Future plan. That plan promised renewed focus on improving profitability while continuing to drive strong growth. And our first quarter results demonstrate meaningful progress against those goals – particularly in our focus areas of quality and logistics,” commented Billy Cyr, Freshpet’s Chief Executive Officer. “With our strengthened organization and the Ennis Kitchen on-line, we believe we can continue to improve on that performance and deliver the significant value creation that one would expect from a high-growth brand like Freshpet.\" First Quarter 2023 Net sales increased 26.7% to $167.5 million for the first quarter of 2023 compared to $132.2 million for the first quarter of 2022. Net sales for the first quarter of 2023 were driven by both velocity gains, and pricing. Gross profit was $50.8 million, or 30.3% as a percentage of net sales, for the first quarter of 2023, compared to $44.8 million, or 33.9% as a percentage of net sales, in the prior year period. The decrease in reported gross profit as a percentage of net sales was primarily due to increased depreciation expense from the expansion in capacity, increased share-based compensation, and unabsorbed plant cost from the Ennis Kitchen, partially offset by reduced input and quality cost as a percentage of net sales. For the first quarter of 2023, Adjusted Gross Profit was $64.4 million, or 38.5% as a percentage of net sales, compared to $50.6 million, or 38.3% as a percentage of net sales, in the prior year period. Adjusted Gross Profit is a non-GAAP financial measure defined under “Non-GAAP Measures” and is reconciled to gross profit in the financial tables that accompany this release. Selling, general...