Freshpet, Inc. · NASDAQ:FRPT
Freshpet — Q1 2025 Earnings Presentation
30 slides from Freshpet's earnings presentation, May 5, 2025
Slide 1: Q1 2025 Earnings
Q1 2025 Earnings Presentation 1 Q1 2025 Earnings May 5, 2025
Slide 2: Forward Looking Statements & Non-GAAP Measures
Q1 2025 Earnings Presentation 2 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 Securities Litigation Reform Act of 1995 and a
Slide 3: Freshpet mission statement
Q1 2025 Earnings Presentation 3 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
Q1 2025 Earnings Presentation 4 Highlights
Slide 5: Structurally advantaged business with a long runway for growth
Q1 2025 Earnings Presentation 5 “Despite the recent macro- economic headwinds, we believe Freshpet remains a structurally advantaged business with a long runway for growth in a category with long-term tailwinds.”
Slide 6: Growth across nearly all metrics Q1 2025
Q1 2025 Earnings Presentation 6 Source: Internal Data, Numerator for L52W ended 3/30/25 Growth across nearly all metrics Q1 2025: FINANCIAL RETAIL Q1 2025 YoY Change Q1 2025 Net Sales $263.2M +17.6% Total Household Penetration +13% Adjusted Gross Margin* 45.7% +40 bps Total Buy Rate +6% Adjusted EBI
Slide 7: Key fundamentals remain intact
Q1 2025 Earnings Presentation 7 Key fundamentals remain intact Q1 2025: • Net sales growth far exceeding category growth • Volume growth of 15% in Q1 2025 • Household penetration growth of 13% and heaviest users growing even faster • Media spend continuing to drive household penetration • 310 basis
Slide 8: Addressing the current macro environment
Q1 2025 Earnings Presentation 8 Addressing the current macro environment • Entry price point bag (Complete Nutrition) • Multipacks • Increasing our advertising investment as we believe it still delivers a solid return • Tailoring our media strategies to attract more higher income consumers, via digi
Slide 9: Vast runway for growth in a growing category
Q1 2025 Earnings Presentation 9 Vast runway for growth in a growing category 1. NIQ Total US Pet Food $ - OmniChannel by Category 52 Weeks Ended 3/29/25 2. NIQ Brick & Mortar Customers (defined as XAOC + Pet) 52 Weeks Ended 3/29/25, Gently Cooked Fresh/Frozen Branded Dog Food $54B U.S. pet food cate
Slide 10: Continued growth in consumer franchise; added ~1.6m households
Q1 2025 Earnings Presentation 10 7.7 9.7 10.6 12.5 14.1 2021 2022 2023 2024 2025 +18% +13% +9%+27% Continued growth in consumer franchise; added ~1.6m households YoY Source: Numerator Panel data for the 52-week periods ending 4/4/21, 4/3/22, 4/2/23, 3/31/24, 3/30/25 Freshpet Household Penetration Gr
Slide 11: Sales concentrated in heaviest users, MVPs
Q1 2025 Earnings Presentation 11 0.8 1.0 1.4 1.8 2.2 $432 $429 $466 $497 $498 415 435 455 475 495 515 535 0.0 0.5 1.0 1.5 2.0 2.5 2021 2022 2023 2024 2025 Freshpet sales are increasingly concentrated in our heaviest users– now called MVP’s* – and account for 69% of LTM net sales Source: Numerator Pa
Slide 12: MVP growth is leading to an increasing buy rate
Q1 2025 Earnings Presentation 12 $76 $77 $92 $103 $110 2021 2022 2023 2024 2025 MVP growth is leading to an increasing buy rate Freshpet Buy Rate (52 weeks) +6% +12% +21% +1% Source: Numerator Panel data for the 52-week periods ending 4/4/21, 4/3/22, 4/2/23, 3/31/24, 3/30/25
Slide 13: Expanding depth and breadth of stores and fridges
Q1 2025 Earnings Presentation 13 10,826 13,387 15,015 16,609 18,004 19,499 21,570 22,716 23,631 25,281 26,777 28,141 28,521 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q1 2025 Expanding depth and breadth: 23% of all stores have multiple fridges Source: Internal data for the period en
Slide 14: Capacity Update
Q1 2025 Earnings Presentation 14 Capacity Update Source: Internal Data Facility # Lines Today # Lines Projected Bethlehem Kitchen 6 7 Kitchen South 4 7 Ennis Kitchen 5 10+ Total 15 24+ Kitchen South bag line started in 1Q 2025 New production technology for bag product to be commissioned in 4Q 2025 i
Slide 15: Capital Efficiency Framework
Q1 2025 Earnings Presentation 15 Capital Efficiency Framework MORE OUT OF EXISTING LINES MORE OUT OF EXISTING SITES DEVELOP & IMPLEMENT NEW TECHNOLOGIES
Slide 16: Q1 2025 Results
Q1 2025 Earnings Presentation 16 Q1 2025 Results
Slide 17: Q1 net sales primarily driven by volume
Q1 2025 Earnings Presentation 17 Q1 net sales primarily driven by volume $223.8 $263.2 Q1 2024 Q1 2025 17.6% Q1 2025 Net Sales ($m) Q1 2025 Net Sales Bridge Source: Internal Data 14.9% 2.7% 17.6% Volume Price/Mix Net Sales Growth
Slide 18: Broad based consumption growth across channels
Q1 2025 Earnings Presentation 18 Broad based consumption growth across channels Source: NIQ consumption data, latest 13 weeks thru 3/29/25 and internal sales data Q1 2025 Consumption Growth ($) Consumption Growth Trends (volume in pounds) 16% 17% 16% 7% Total US Pet Retail Plus XAOC Food Pet Special
Slide 19: Modest Adjusted Gross Margin and Adjusted EBITDA improvement
Q1 2025 Earnings Presentation 19 Q1 2025 delivered modest Adjusted Gross Margin and Adjusted EBITDA improvement Q1 2025 Adj. Gross Margin % of net sales Q1 2025 Adj. EBITDA ($m) % of net sales 45.3% 45.7% Q1 2024 Q1 2025 $30.6 $35.5 Q1 2024 Q1 2025 13.7% 13.5% Net Income (Loss) $18.6m ($12.7m) Sourc
Slide 20: 310 basis point improvement across key focus areas
Q1 2025 Earnings Presentation 20 31.2% 6.4% 2.8% 29.3% 5.8% 2.2% Input Costs Logistics Quality 310 basis point improvement across key focus areas in Q1 2025 Key Margin Improvement Targets & Progress Q1 2024 Q1 2025 Source: Internal Data -60 bps YoY -60 bps YoY-190 bps YoY
Slide 21: FY 2025 Guidance
Q1 2025 Earnings Presentation 21 FY 2025 Guidance
Slide 22: FY 2025 Guidance
Q1 2025 Earnings Presentation 22 FY 2025 Guidance Additional considerations: • Net Sales: Expect sequential increase in net sales per quarter • Adjusted Gross Margin: Expect modest expansion • Advertising Investment: Expect media as a percent of sales to be greater than 2024 • Cash: Expect to end th
Slide 23: 2027 Targets
Q4 & FY 2024 EARNINGS PRESENTATION23 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 $1.8 billi
Slide 24: Capital Spending, Cash Flow & Liquidity
Q4 & FY 2024 EARNINGS PRESENTATION24 Capital Spending, Cash Flow & Liquidity
Slide 25: Q1 2025 operating cash flow impacted by one-time items
Q1 2025 Earnings Presentation 25 Q1 2025 operating cash flow impacted by one-time items Capital Spending: • Q1 2025 spend of $26.5 million • Estimated 2025 spending of ~$225 million with the majority of spend on the installation of new capacity to support our growth in the outyears Cash flow: • Gene
Slide 26: Appendix
Q1 2025 Earnings Presentation 26 Appendix
Slide 27: Reconciliation between Gross Profit and Adjusted Gross Profit
Q1 2025 Earnings Presentation 27 Freshpet, Inc. and Subsidiaries Reconciliation between Gross Profit and Adjusted Gross Profit Source: Internal Data For the Three Months Ended March 31, 2025 2024 (Dollars in thousands) Gross profit $ 103,788 $ 88,158 Depreciation expense 15,179 10,675 Non-cash share
Slide 28: Reconciliation between Net Income (loss) and Adjusted EBITDA
Q1 2025 Earnings Presentation 28 Freshpet, Inc. and Subsidiaries Reconciliation between Net Income (loss) and Adjusted EBITDA Source: Internal Data For the Three Months Ended March 31, 2025 2024 (Dollars in thousands) Net (loss) income $ (12,697) $ 18,602 Depreciation and amortization 21,116 15,745
Slide 29: Convertible Share Dilution Calculations at Maturity
Q1 2025 Earnings Presentation 29 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 sha
Slide 30: Thank you
Q1 2025 Earnings Presentation 30 Thank you