Freshpet (FRPT) Reports Strong Growth in Net Sales and Earnings

By Bobby Samwell • Monday, February 26 16:26 • Permanent Link

Freshpet, Inc. has reported its financial results for the fourth quarter and full year 2023. The company's net sales for the fourth quarter of 2023 were $215.4 million, showing a significant increase of 29.9% compared to the same period in the previous year. Net income for the fourth quarter of 2023 was $15.3 million, a notable improvement compared to the net loss of $2.9 million in the prior year period. The adjusted EBITDA for the fourth quarter of 2023 stood at $31.3 million, showing a substantial increase from $18.8 million in the previous year.

For the full year 2023, Freshpet reported net sales of $766.9 million, marking a strong growth of 28.8% compared to the prior year. The company also saw a marked improvement in its financial performance, with a net loss of $33.6 million for the full year 2023, compared to a net loss of $59.5 million in the prior year. The adjusted EBITDA for the full year 2023 was $66.6 million, representing a significant increase from $20.1 million in the previous year.

Freshpet's financial position also strengthened, with cash and cash equivalents of $296.9 million and a significant increase in cash from operations to $75.9 million for the full year ended December 31, 2023.

Looking ahead, Freshpet provided its guidance for the full year 2024, projecting net sales of at least $950 million, representing an increase of at least 24% from 2023. The company also expects adjusted EBITDA in the range of $100 to $110 million and capital expenditures of approximately $210 million for 2024.

The company's CEO, Billy Cyr, expressed confidence in Freshpet's future, emphasizing the company's focus on driving profitability and creating shareholder value. He highlighted the company's leadership position and its ability to sustain net sales growth while making margin improvements.

Freshpet's financial performance and outlook reflect its commitment to growth and financial discipline, positioning the company for continued success in the evolving pet food industry.

Following these announcements, the company's shares moved 19.7%, and are now trading at a price of $110.12. For more information, read the company's full 8-K submission here.

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