Freshpet, Inc. · NASDAQ:FRPT
Freshpet — Jefferies Pet Industry Summit 2019
20 slides from Freshpet's conference presentation, Mar 20, 2019
Slide 1: Jefferies Pet Industry Summit 3/20/19
Jefferies Pet Industry Summit 3/20/19 1 Exhibit 99.1
Slide 2: Safe Harbor Forward Looking Statements
2 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 i
Slide 3: Freshpet Lives at the Intersection of Two Very Powerful Macro-Trends in CPG
3 Freshpet Lives at the Intersection of Two Very Powerful Macro-Trends in CPG Humanization of Pets Fresh, Wholesome, All-Natural Foods
Slide 4: A totally different approach to nourishing our pets
A totally different approach to nourishing our pets 4
Slide 5: We start with FRESH ingredients & finish with FRESH food
We start with FRESH ingredients & finish with FRESH food. No preservatives, no additives...only the WHOLE NURISHMENT pets need. 5
Slide 6: A Difficult Business to Replicate
High Brand Loyalty Alignment with deep pet parent emotional motivations Differentiated Innovative forms, technologies, and appearance Manufacturing Proprietary technology, processes, and infrastructure Freshpet Fridge Branded, company-owned real estate Supply Chain Only refrigerated pet food network
Slide 7: We Operate Differently
7 We Operate Differently Delighting consumers with fresh food & our company ideology pets. The power of fresh natural & simple foods Less processed Acts of kindness people. Our team Our partners Our families planet. 100% wind energy Carbon footprint offset Conservation – land fill free Sustainable p
Slide 8: 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 8
Slide 9: Accelerated Growth in Mega-Channel (grocery, Mass + pet)
Accelerated Growth in Mega-Channel (grocery, Mass + pet) 9 20.9% 18.8% 12.8% 11.2%11.4%11.4% 12.4%12.0% 13.7% 16.2% 14.4% 15.4%15.3%15.3% 17.4% 19.3% 20.1% 21.8% 23.7% 22.7%22.3%21.8% 20.4% 23.3% 22.0% 23.6%24.1% 28.1% 27.0%26.6% 24.8%25.1% 31.0% 30.3%30.0% 31.9% 30.1% 30.1% 15.3%15.31%5.6% 13.8% 8.
Slide 10: Carrying strong momentum into 2019
CONFIDENTIAL Carrying strong momentum into 2019 10 Nielsen measured $ consumption for 7 weeks ending 2/16/19 and 2/17/18 compared to the same period prior year 7 wks ending 2/16/19 Growth vs YA 7 wks ending 2/17/18 Growth vs YA Mega-Channel +26.8% +24.4% XAOC +28.9% +27.4% Food +35.1% +32.5%
Slide 11: Freshpet revenue growth continuing to accelerate in 2019
Freshpet revenue growth continuing to accelerating in 2019 Freshpet Nielsen Ending 3/9/19 L4W L13W L52W Total US xAOC 32.4% 30.0% 30.7% 11
Slide 12: Increased penetration & buying rate
$70.98 $83.17 $90.29 $96.53 CY 2014 CY 2015 CY 2016 CY 2017 CY 2018 Buy Rate Increased penetration & buying rate Total Freshpet Buying Rate, Penetration and Repeat Rate $105.81 Source: TTL FP RFG, 52 weeks ending 12/29/18, Nielsen HH Panel, Internal Buy Rate Calculation, Repeat NBD-Adj Nielsen HH Pa
Slide 13: Growth Platform 2019+
freshpet Growth Platform 2019+
Slide 14: Freshpet 2019 Growth Priorities
Expand the Freshpet consumer franchise Increase HH penetration Expand buying rate Expand geographic reach outside the US Strengthen Freshpet’s retail presence Increase ACV in US, Canada and UK Upgrade Fridges Install 2nd Fridges Strengthen Gross Margin/Adjusted EBITDA Margin Increase pricing Product
Slide 15: Expand the Freshpet consumer franchise while strengthening retail presence
Expand the Freshpet consumer franchise while strengthening retail presence 15 Marketing $27 million 11+% of sales / +$7MM Retail Presence 1500 new fridges 800 Double fridges Innovation New platform Higher margin
Slide 16: Strengthen gross margin/adjusted EBITDA margin
Strengthen gross margin/adjusted EBITDA margin 16 Pricing Targeted bag items • +2% pricing impact across total line Effective in mid-Q1 Innovation Increase appeal of rolls Higher margin bag items Begins shipping end of Q1 COGS Increase yield/throughput 24/7 on 2 lines in Jan. ‘19 24/7 on final line
Slide 17: Growing into scale: Adj. EBITDA growth > net sales growth
17 Growing into scale:Adj. EBITDA growth > net sales growth 2018 2019 % Change $ in Millions Net Sales $193.2 >$240 +24% Adjusted EBITDA $20.3 >$28 +38% Excluding incremental investments in Canada/UK and technical capability/capacity building, Adjusted EBITDA would be up 50+% in 2019
Slide 18: Bridge to $60 million EBITDA in FY2020
18 Bridge to $60 million EBITDA in FY2020 $28.0 $24.0 $2.0 $6.0 $(1.5) $1.5 $60.0 FY19 Adj. EBITDA Guidance Contribution on $60mm of Additional Net Sales to get to $300MM Reduced int’l investment/ loss Adjusted Gross Margin Increase from 50% to 52% on $300MM net sales Increased Fixed SG&A of 4% Logi
Slide 19: Freshpet Growth Potential
0.00% 0.50% 1.50% 1.00% 2.00% 2.50% 3.00% 4.00% 3.50% 4.50% 5.00% $- $200.0 $400.0 $600.0 $800.0 $1,000.0 $1,200.0 2016 2019 2025 Freshpet Growth Potential 20172018 Media Spending ($ millions) 2020 Buying Rate 20212022 Revenue ($ million) 20232024 Core Dog HH Penetration Driving net sales towards $5
Slide 20: freshpet
freshpet