Business
Freshpet, Inc. Reports Second Quarter 2023 Financial Results
Raises Adjusted EBITDA guidance; re-affirms net sales guidanceVolume growth is strong and acceleratingStrong operating performance on input costs, logistics
About this update from Freshpet, Inc.
[{"type":"text","content":"Raises Adjusted EBITDA guidance; re-affirms net sales guidanceVolume growth is strong and acceleratingStrong operating performance on input costs, logistics and quality SECAUCUS, N.J., Aug. 07, 2023 (GLOBE NEWSWIRE) -- Freshpet, Inc. (“Freshpet” or the “Company”) (Nasdaq: FRPT) today reported financial results for its second quarter ended June 30, 2023. Second Quarter 2023 Financial Highlights Compared to Prior Year Period Net sales of $183.3 million, an increase of 25.6%Net loss of $17.0 million, compared with prior year net loss of $20.6 millionAdjusted EBITDA of $9.0 million, compared to prior year of $(1.9) million.1 \"The Freshpet business has real momentum. In the second quarter, we delivered strong volume and net sales growth, and significant improvements in our operating performance – particularly in quality and logistics – which is the basis for increasing our 2023 adjusted EBITDA guidance today,\" commented Billy Cyr, Freshpet’s Chief Executive Officer. “With a strengthened organization in place, accelerating household (\"HH\") penetration growth, record levels of new fridge placements, and a successful start-up of the Ennis Kitchen, we are well-positioned to fulfill the long-term potential of Freshpet and change the way people nourish their pets forever.\" Second Quarter 2023 Net sales increased 25.6% to $183.3 million for the second quarter of 2023 compared to $146.0 million for the second quarter of 2022. Net sales for the second quarter of 2023 were driven by both velocity gains, and higher pricing. Gross profit was $59.2 million, or 32.3% as a percentage of net sales, for the second quarter of 2023, compared to $51.1 million, or 35.0% 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 associated with the Company's capacity expansion, unabsorbed plant cost and increased share-based compensation, partially offset by reduced input and quality cost as a percentage of net sales. For the second quarter of 2023, Adjusted Gross Profit was $73.0 million, or 39.8% as a percentage of net sales, compared to $56.5 million, or 38.7% 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 profi...