Slide 1: Freshpet 2019 Q3 Results
Exhibit 99.2 freshpet 2019 Q3 Results : bringing the POWwer \ a of {VUSK food to pets Freshpet sit. ar
Slide 2: Safe Harbor Forward Looking Statements
Safe Harbor Forward Looking Statements This presentation contains “forward-looking” statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the Company’s results may differ materially from those expressed or imp
Slide 3: We fundamentally believe Freshpet can change the way people feed their pets
WE FUNDAMENTALLY BELIEVE THAT FRESHPET HAS THE POTENTIAL TO CHANGE THE WAY PEOPLE FEED THEIR PETS . . . FOREVER
Slide 4: 2019 Results: Continued strong top line results driving bottom line gains
2019 Results: Continued strong top line results driving bottom line gains Freshpet Q3 Financial Results Q3 2018 Q3 2019 Net Sales ($ millions) $50.8 $65.3 vs YA +27% +28% Adj. EBITDA ($ millions) $6.7 $12.0 vs YA +20% +78% Freshpet YTD Financial Results (Sept 30) 2018 2019 Net Sales ($ millions) $14
Slide 5: 2019 Guidance: Reiterating guidance provided in August
2019 Guidance: Reiterating guidance provided in August Freshpet Financial Performance 2017 2018 2019 Guidance* Net Sales ($ millions) $152.4 $193.2 >$244 vs YA +17% +27% >+26% Adj. EBITDA ($ millions) $17.6 $20.3 >$29 vs YA -1% +15% >+43% *Excluding incremental investments in Canada/UK and technical
Slide 6: Strong growth across all classes of trade
Nielsen measured $ consumption for 13 weeks ending 9/28/19 and 9/29/18 compared to the same period prior year Strong growth across all classes of trade Freshpet Consumption Growth vs YA Q3 2018 Q3 2019 Mega-Channel +31% +25% XAOC +33% +29% Food +38% +34% Big Box Pet +23% +11%
Slide 7: Continued strong consumption growth
Continued strong consumption growth Nielsen measured $ consumption for 4 week periods ending 7/13/19
Slide 8: Strong velocity gains driving accelerating distribution gains
Strong velocity gains driving accelerating distribution gains Nielsen Mega-Channel for 4 week periods 4/23/16 through 10/5/19
Slide 9: Strategy: Grow with winning players in fresh e-commerce
Strategy: Grow with winning players in fresh e-commerce e-commerce sales grew +93% vs. YA to 2.5% of sales in Q3 2019 >85% of e-commerce sales utilize Freshpet Fridge Continued strong growth in fresh e-commerce Curbside Online Fresh Retail Home Delivery
Slide 10: Dig a Deeper
fréshpet DIG-A\ DEEPER
Slide 11: Freshpet 2019 growth priorities
Freshpet 2019 growth priorities 1. Expand the Freshpet consumer franchise Increase HH penetration Expand buying rate 2. Strengthen Freshpet’s retail presence Increase ACV and TDP’s Upgrade Fridges Install 2nd Fridges 3. Strengthen Gross Margin/Adjusted EBITDA Margin Pricing Product Innovation Effici
Slide 12: 21% growth in total Freshpet HH penetration vs. YA; 4% increase in buying rate
21% growth in total Freshpet HH penetration vs. YA; 4% increase in buying rate Total Freshpet Buying Rate, Penetration and Repeat Rate Nielsen HH Panel Data for 52 Week Periods ending September 2019; Buying Rate is internal calculation based on company sales data
Slide 13: 32% growth in Core Dog HH penetration vs YA; flat buying rate
32% growth in Core Dog HH penetration vs YA; flat buying rate Nielsen HH Panel Data for 52 Week Periods ending September 2019; Buying Rate is internal calculation based on company sales data
Slide 14: "Fresh First" is driving strong distribution gains
“Fresh First” is driving strong distribution gains Freshpet Distribution Gains Q3 2018 Q3 2019 Store Count 19,107 20,779 vs YA +8% +9% Upgraded Fridges (Cum.) 761 1,342 YTD Increase - 537 2nd Fridges (Cum.) NA 778 % ACV 45.1% 49.4% vs YA +7% +9% Total Distribution Points (Change vs YA) +12% +9%
Slide 15: Adjusted gross margin bounce back from Q2 dip and on track for 50% goal
Adjusted gross margin bounce backed from Q2 dip and on-track for 50% goal in 2019 Freshpet Q3 Adjusted Gross Margin Progress Q3 2018 Q3 2019 Adj. Gross Margin 49.7% 49.8% Freshpet Q3 Adjusted Gross Margin Progress Q1 2019 Q2 2019 Q3 2019 YTD 2019 Adj. Gross Margin 50.4% 48.5% 49.8% 49.5%
Slide 16: Adjusted gross margin improvement plan
Price increases implemented Benefit of price increases realized Innovations launched Start-up 4th line on 24/3.5 Benefit of innovations realized Benefit of 24/3.5 staffing realized 51+% Adj. Gross Margin target Fully implemented adjusted gross margin improvement plan Q1 Q2 Q3 Q4
Slide 17: Delivering significant leverage from scale in SG&A
Delivering significant leverage from scale in SG&A Freshpet Q3 SG&A Leverage Q3 2018 Q3 2019 Y-o-Y Change Adj. SG&A % Excluding Media 27.8% 24.6% +320 bps Media % 8.7% 6.8% +190 bps Total Adj. SG&A % 36.5% 31.4% +510 bps Freshpet YTD SG&A Leverage (Sept 30) YTD 2018 Q3 YTD 2019 Q3 Y-o-Y Change Adj.
Slide 18: Kitchens 2.0 construction underway; on track for Q3 2020 start-up
Kitchens 2.0 construction underway; on track for Q3 2020 start-up
Slide 19: Delighting pet parents, pets, shareholders and employees
Delighting pet parents, pets, shareholders and employees . . .
Slide 20: Why haven't you bought any Freshpet yet????
Why haven’t you bought any Freshpet yet????