Slide 1: 2019 Q2 Results
2019 Q2 Results Exhibit 99.2 Exhibit 99.22019 Q2 Results bringing the power of fresh food to pets freshpet sweet corn cut Lowers peppers broccoli 1
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 has the potential to change the way people feed their pets
WE FUNDAMENTALLY BELIEVE THAT FRESHPET HAS THE POTENTIAL TO CHANGE THE WAY PEOPLE FEED THEIR PETS . . . FOREVER WE FUNDAMENTALLY BELIEVE THAT FRESHPET HAS THE POTENTIAL TO CHANGE THE WAY PEOPLE FEED THEIR PETSFOREVER 3
Slide 4: 2019 Results: Strong topline growth will drive bottom line growth in 2nd half
2019 Results: Strong topline growth will drive bottom line growth in 2nd half Freshpet Q2 Financial Results Q2 2018 Q2 2019 Net Sales ($ millions) $47.6 $60.1 IYA (123) (126) Adj. EBITDA ($ millions) $2.5 $1.2 IYA (80) (53) Freshpet YTD Financial Results (June 30) 2018 2019 Net Sales ($ millions) $9
Slide 5: 2019 Guidance: Raising guidance to reflect strong start
2019 Guidance: Raising guidance to reflect strong start Freshpet Guidance Initial Guidance Revised Guidance Change Net Sales ($ millions) >$240 >$244 +4.0 IYA (>124) (>126) +2 pts. Adj. EBITDA ($ millions) >$28 >$29 +1.0 IYA (>138) (>143) +5 pts. 2019 Guidance: Raising guidance to reflect strong sta
Slide 6: 2019: Beginning to capture scale benefits of rapid growth
2019: Beginning to capture scale benefits of rapid growth Freshpet Financial Performance 2017 2018 2019 Guidance* Net Sales ($ millions) $152.4 $193.2 >$244 IYA (117) (127) (>126) Adj. EBITDA ($ millions) $17.6 $20.3 >$29 IYA (99) (115) (>143) *Excluding incremental investments in Canada/UK and tech
Slide 7: Strong growth across all classes of trade
Nielsen measured $ consumption for 13 weeks ending 6/29/19 and 6/30/18 compared to the same period prior year Strong growth across all classes of trade Freshpet Consumption Growth vs YA Q2 2018 Q2 2019 Mega-Channel +28% +27% XAOC +28% +31% Food +32% +35% Big Box Pet +25% +13% Strong growth across al
Slide 8: Continued strong consumption growth
Continued strong consumption growth Nielsen measured $ consumption for 4 week periods ending 7/13/19 Continued strong consumption growth Nielsen Mega-Channel Consumption Growth 15.3% 17.4% 19.3% 20.1% 21.8% 23.7% 22.7% 22.3% 21.8% 20.4% 23.3% 21.8% 20.4% 23.3% 22.0% 23.6% 24.1% 24.8% 25.1% 27.0% 26.
Slide 9: 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 7/13/19 Strong velocity gains driving accelerating distribution gains Freshpet Distribution and Velocity Progress (Growth vs. YA) 25% 20% 15% 10% 5% 0% 3% 3% 3% 3% 4% 6% 5% 6% 6% 5%
Slide 10: Strategy: Grow with winning players in fresh e-commerce
Strategy: Grow with winning players in fresh e-commerce Doubled e-commerce sales vs. YA to 2.2% of brand in Q2 2019 >80% of e-commerce sales utilize Freshpet Fridge Accelerating growth in fresh e-commerce Accelerating growth in fresh e-commerce Strategy: Grow with winning players in fresh e-commerce
Slide 11: Dig a Deeper
fréshpet DIG-A\ DEEPER
Slide 12: 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 13: 18% growth in total Freshpet HH penetration vs. YA; 9% increase in buying rate
18% growth in total Freshpet HH penetration vs. YA; 9% increase in buying rate Total Freshpet Buying Rate, Penetration and Repeat Rate Penetration 1.47 1.56 1.61 1.93 2.27 Repeat 65 66 68 69 70 Nielsen HH Panel Data for 52 Week Periods ending mid-June; Buying Rate is internal calculation based on co
Slide 14: 27% growth in Core Dog HH penetration vs YA; 4% increase in buying rate
27% growth in Core Dog HH penetration vs YA; 4% increase in buying rate Penetration 0.94 1.03 1.09 1.35 1.71 Repeat 67 68 70 70 71 Nielsen HH Panel Data for 52 Week Periods ending mid-June; Buying Rate is internal calculation based on company sales data 27% growth in Core Dog HH penetration vs YA;4%
Slide 15: "Fresh First" is driving strong distribution gains
“Fresh First” is driving strong distribution gains Freshpet Distribution Gains Q2 2018 Q2 2019 Store Count 18,662 20,414 IYA (108) (109) Upgraded Fridges (Cum.) 710 1,168 Increase - 458 2nd Fridges (Cum.) NA 747 % ACV 44.5% 48.2% IYA (107) (108) Total Dist. Points (IYA) (111) (108) “Fresh First” is
Slide 16: Operational challenges constrained gross margin progress
Operational challenges constrained gross margin progress Freshpet Q2 Adjusted Gross Margin Progress Q2 2018 Q2 2019 Adj. Gross Margin 51.4% 48.5% Freshpet YTD Adjusted Gross Margin (June 30) Q2 2018 Q2 2019 Adj. Gross Margin 50.8% 49.4% Operational challenges constrained gross margin progress Freshp
Slide 17: Operational challenges constrained gross margin progress
Operational challenges constrained gross margin progress Adjusted gross margin bridge from Q1 to Q2 Operational challenges largely resolved in July 2019 and should not impact ability to achieve 50% AGM for FY 2019 and 51% AGM for Q4 Operational challenges constrained gross margin progress Adjusted g
Slide 18: Fully implemented 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 Fully implemented adjusted gross
Slide 19: Delivering significant leverage from scale in SG&A
Delivering significant leverage from scale in SG&A Freshpet Q2 SG&A Leverage Q2 2018 Q2 2019 Y-o-Y Change Adj. SG&A % Excluding Media 28.8% 24.6% 4.2% Media % 17.4% 21.8% -4.4% Total Adj. SG&A % 46.2% 46.4% -0.2% Freshpet YTD SG&A Leverage (June 30) YTD 2018 Q2 YTD 2019 Q2 Y-o-Y Change Adj. SG&A % E
Slide 20: Broke ground on ~$100M Kitchens 2.0 in June 2019
Broke ground on ~$100M Kitchens 2.0 in June 2019 Broke ground on ~$100M Kitchens 2.0 in June 2019 20
Slide 21: Delighting pet parents, pets, shareholders and employees
Delighting pet parents, pets, shareholders and employees . . . Delighting pet parents, pets, shareholders and employees melissa $Zooka Canton MI 21
Slide 22: Why haven't you bought any Freshpet yet????
Why haven’t you bought any Freshpet yet???? Why haven’t you bought any Freshpet yet???? 22