Slide 1: Q4 & FY 2024 Earnings
Q4 & FY 2024 EARNINGS PRESENTATION1 Q4 & FY 2024 Earnings February 20, 2025
Slide 2: Forward Looking Statements & Non-GAAP Measures
Q4 & FY 2024 EARNINGS PRESENTATION2 Q4 & FY 024 EAR INGS PR SEN ATION Forward Looking Statements & Non-GAAP Measures FORWARD-LOOKING STATEMENTS Certain statements in this presentation by Freshpet, Inc. (the “Company”) constitute “forward-looking” statements within the meaning of the Private Securiti
Slide 3: Freshpet mission statement
Q4 & FY 2024 EARNINGS PRESENTATION3 Freshpet strengthens the bond between people and our pets so that we both live longer, healthier and happier lives while being kind to the planet.
Slide 4: Highlights
Q4 & FY 2024 EARNINGS PRESENTATION4 Highlights
Slide 5: Fiscal year 2024 was a breakout year
Q4 & FY 2024 EARNINGS PRESENTATION5 “Fiscal year 2024 was a breakout year for Freshpet. We continued to deliver the exceptional net sales growth investors have come to expect from Freshpet but also delivered very strong profit improvements… This strong performance also enables us to raise our long-t
Slide 6: Q4 & FY 2024: Solid growth with scale advantages
Q4 & FY 2024 EARNINGS PRESENTATION6 Source: Internal Data, Numerator for L52W ended 12/31/24 FINANCIAL RETAIL Q4 2024 FY 2024 FY 2024 Net Sales $262.7M $975.2M Household Penetration +17% Net Sales Growth YoY +22% +27% Buy Rate +6% Adjusted Gross Margin* 48.1% 46.5% Cubic Feet +12% Adjusted EBITDA $5
Slide 7: Strength of the Freshpet growth model
Q4 & FY 2024 EARNINGS PRESENTATION7 Strong performance driven by key fundamentals: • Strong, consistent net sales growth • Volume-based growth of 26% in fiscal year 2024 • Household penetration growth of 17% and heaviest users growing even faster • Media spend continuing to drive household penetrati
Slide 8: Long-term tailwinds supporting our growth
Q4 & FY 2024 EARNINGS PRESENTATION8 Long-term tailwinds supporting our growth: • Growing importance of pets in our lives; long-term trend we have seen for over a decade • Parents waiting longer to have kids, having less kids and getting pet instead • Consumers recognize quality for the price, not ju
Slide 9: Vast runway for growth in a growing category
Q4 & FY 2024 EARNINGS PRESENTATION9 Vast runway for growth in a growing category 1. NIQ Total US Pet Food $ - OmniChannel by Category 52 Weeks Ended 12/28/24 2. NIQ MegaChannel 52 Weeks Ended 12/28/24, Gently Cooked Fresh/Frozen Branded Dog Food $54B U.S. pet food category1 $37B Dog food category1 3
Slide 10: Continued growth in consumer franchise
Q4 & FY 2024 EARNINGS PRESENTATION10 7.3 8.6 9.9 11.6 13.5 2020 2021 2022 2023 2024 +17% +17% +15% +17% Continued growth in consumer franchise; added ~2m households YoY Source: Numerator Panel data for the 52-week periods ending 12/31/20, 12/31/21, 12/31/22, 12/31/23, and 12/31/24 Freshpet Household
Slide 11: Sales concentrated in heaviest users (MVPs)
Q4 & FY 2024 EARNINGS PRESENTATION11 0.7 0.9 1.3 1.6 2.1 $426.00 $428.38 $453.95 $477.33 $473.85 415 435 455 475 495 515 0.0 0.5 1.0 1.5 2.0 2.5 2020 2021 2022 2023 2024 Freshpet sales are increasingly concentrated in our heaviest users– now called MVP’s* – and account for 69% of FY 2024 net sales S
Slide 12: Converting toppers into main meal users increases buy rate
Q4 & FY 2024 EARNINGS PRESENTATION12 $71.72 $76.58 $90.71 $99.30 $104.89 2020 2021 2022 2023 2024 Converting toppers into main meal users will continue to increase buy rate Source: Numerator Panel data for the 52-week periods ending 12/31/20, 12/31/21, 12/31/22, 12/31/23, and 12/31/24 Freshpet Buy R
Slide 13: Expanding depth and breadth of stores and fridges
Q4 & FY 2024 EARNINGS PRESENTATION13 Expanding depth and breadth: 22% of all stores have multiple fridges Source: Internal data for the period ending 12/31/24; *U.S. Fridges Freshpet Store Count Number of Fridges per Store* Second/Third Fridges 22% One Fridge 78% YOY +1,364 10,826 13,387 15,015 16,6
Slide 14: Improved costs by 740 bps in FY 2024
Q4 & FY 2024 EARNINGS PRESENTATION14 -150 bps FY 2024 -150 bps FY 2024 -440 bps FY 2024 Improved costs by 740 bps in FY 2024 across key focus areas Source: Internal Data; All comparisons to prior year period
Slide 15: Capacity Update
Q4 & FY 2024 EARNINGS PRESENTATION15 Capacity Update Source: Internal Data Facility # Lines Today # Lines Projected Bethlehem Kitchen 6 7 Kitchen South 3 7 Ennis Kitchen 5 10+ Total 14 24+ Q4 & FY 2024 EARNINGS PRESENTATION Fifth roll line in Ennis installed and provides necessary roll capacity well
Slide 16: Capital Efficiency Framework
Q4 & FY 2024 EARNINGS PRESENTATION16 Capital Efficiency Framework MORE OUT OF EXISTING LINES MORE OUT OF EXISTING SITES DEVELOP & IMPLEMENT NEW TECHNOLOGIES
Slide 17: Q4 2024 Results
Q4 & FY 2024 EARNINGS PRESENTATION17 Q4 2024 Results
Slide 18: Q4 results demonstrate strong growth in line with guidance
Q4 & FY 2024 EARNINGS PRESENTATION18 Q4 results demonstrate strong growth in-line with our guidance $215.4 $262.7 Q4 2023 Q4 2024 +22% Q4 2024 Net Sales ($m) Q4 2024 Net Sales Bridge Source: Internal Data 21.7% 2.0% -1.7% 22.0% Measured Sales Growth Non-Measured Growth Trade Inventory Reduction Net
Slide 19: Broad based consumption growth across channels
Q4 & FY 2024 EARNINGS PRESENTATION19 Broad based consumption growth across channels Source: NIQ consumption data, latest 13 weeks thru 12/28/24 and internal sales data Q4 2024 Consumption Growth ($) Consumption Growth Trends (volume in pounds) 22% 23% 20% 10% Total US Pet Retail Plus XAOC Food Pet S
Slide 20: Q4 2024 delivered significant margin improvement
Q4 & FY 2024 EARNINGS PRESENTATION20 Q4 2024 delivered significant margin improvement Gross Margin (GAAP) 42.5%34.6% Q4 2024 Adj. Gross Margin % of net sales Q4 2024 Adj. EBITDA ($m) % of net sales 41.1% 48.1% Q4 2023 Q4 2024 $31.3 $52.6 Q4 2023 Q4 2024 14.5% 20.0% Net Income $15.3m $18.1m Source: I
Slide 21: Key margin improvement targets and progress, Q4
Q4 & FY 2024 EARNINGS PRESENTATION21 33.9% 6.3% 3.6% 28.4% 6.2% 2.7% 33.5% 7.5% 2.9% Input Costs Logistics Quality 650 basis point improvement in Q4 2024; demonstrated our ability to deliver our previous FY 2027 margin targets Key Margin Improvement Targets & Progress Q4 2023 Q4 2024 Previous 2027 T
Slide 22: FY 2024 Results
Q4 & FY 2024 EARNINGS PRESENTATION22 FY 2024 Results
Slide 23: Strong FY 2024 results demonstrate volume-driven growth
Q4 & FY 2024 EARNINGS PRESENTATION23 Strong FY 2024 results demonstrate volume-driven growth $766.9 $975.2 FY 2023 FY 2024 +27% FY 2024 Net Sales ($m) FY 2024 Net Sales Bridge Source: Internal Data 26% 1% 27% Volume Price/Mix Net Sales Growth
Slide 24: FY 2024 delivered significant margin improvement
Q4 & FY 2024 EARNINGS PRESENTATION24 FY 2024 delivered significant margin improvement Gross Margin (GAAP) 40.6%32.7% FY 2024 Adj. Gross Margin % of net sales FY 2024 Adj. EBITDA ($m) % of net sales 40.0% 46.5% FY 2023 FY 2024 $66.6 $161.8 FY 2023 FY 2024 8.7% 16.6% Net Income (loss) ($33.6m) $46.9m
Slide 25: Key margin improvement targets and progress, FY
Q4 & FY 2024 EARNINGS PRESENTATION25 34.1% 7.5% 4.1% 29.7% 6.0% 2.6% 33.5% 7.5% 2.9% Input Costs Logistics Quality 740 basis point improvement in FY 2024; demonstrated our ability to deliver FY 2027 margin targets again Key Margin Improvement Targets & Progress FY 2023 FY 2024 Previous 2027 Target S
Slide 26: Significant Adj. Gross Margin improvement YOY
Q4 & FY 2024 EARNINGS PRESENTATION26 Significant Adj. Gross Margin improvement YOY; ahead of our previous long- term target 40.0% 46.5% 45.0% FY 2023 FY 2024 Previous 2027 Target Adj. Gross Margin Progress vs. Previous 2027 Target Source: Internal Data
Slide 27: FY 2025 Guidance
Q4 & FY 2024 EARNINGS PRESENTATION27 FY 2025 Guidance
Slide 28: FY 2025 Guidance
Q4 & FY 2024 EARNINGS PRESENTATION28 FY 2025 Guidance Additional considerations: • Net Sales: Expect the sales growth rate to be slightly higher in the second half of 2025 • Adjusted Gross Margin: Expect modest expansion • Advertising Investment: Expect media as a percent of sales to be in- line wit
Slide 29: Updated 2027 Targets
Q4 & FY 2024 EARNINGS PRESENTATION29 Updated 2027 Targets Expand HH Penetration Increase Velocity Advertising & Innovation Expand Visibility & Availability Drive Efficiencies Build Organization Capability to Increase Effectiveness & Leverage Scale Expand Capacity 22% Adjusted EBITDA Margin Target (1
Slide 30: Capital Spending, Cash Flow & Liquidity
Q4 & FY 2024 EARNINGS PRESENTATION30 Capital Spending, Cash Flow & Liquidity
Slide 31: Significant improvement in operating cash flow YoY
Q4 & FY 2024 EARNINGS PRESENTATION31 Significant improvement in operating cash flow YoY Capital Spending: • Key projects remain on-track and on-budget • 2024 spend of $187 million and estimated 2025 spending of $250 million due to the shift in spend and installation of new capacity across all three
Slide 32: Appendix
Q4 & FY 2024 EARNINGS PRESENTATION32 Appendix
Slide 33: Reconciliation between Gross Profit and Adjusted Gross Profit
Q4 & FY 2024 EARNINGS PRESENTATION33 Freshpet, Inc. and Subsidiaries Reconciliation between Gross Profit and Adjusted Gross Profit Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 (Dollars in thousands) Gross profit $ 111,600 $ 74,575 $ 395,956 $ 250,872 Depreciation expen
Slide 34: Reconciliation between Net Income (loss) and Adjusted EBITDA
Q4 & FY 2024 EARNINGS PRESENTATION34 Freshpet, Inc. and Subsidiaries Reconciliation between Net Income (loss) and Adjusted EBITDA a) Includes true-ups to share-based compensation expense compared to prior periods. We have certain outstanding share-based awards with performance-based vesting conditio
Slide 35: Convertible Share Dilution Calculations at Maturity
Q4 & FY 2024 EARNINGS PRESENTATION35 Convertible Share Dilution Calculations at Maturity ▪ We have run share dilution calculations to compare outcomes for the 2028 convertible notes ▪ Freshpet has structured the convertible with Flexible Settlement, so we have the option to settle the convertible in
Slide 36: PRESENTATION36
Q4 & FY 2024 EARNINGS PRESENTATION36
Slide 37: PRESENTATION37
Q4 & FY 2024 EARNINGS PRESENTATION37