The following is a summary of the Freshpet, Inc. (FRPT) Q1 2024 Earnings Call Transcript:
Financial Performance:
Freshpet reported Q1 net sales of $223.8 million, up 34% year-over-year, primarily driven by a 31% increase in volume and a 3% increase in price/mix.
Their adjusted gross margin for Q1 was 45.3%, up from 41.1% in the previous quarter, and 38.5% in the prior year.
The company's Q1 adjusted EBITDA saw an increase of approximately $28 million year-over-year, amounting to $30.6 million.
Earnings per share were $0.37, excluding a markup in the value of the company's equity investment, which equates to $0.17 per share.
Adjusted EBITDA as a percent of net sales in the Q1 was 13.7%, a significant increase from 1.8% in the previous year.
Business Progress:
The company placed 617 fridges in Q1, taking their total to 34,812 fridges, thus providing 1.7 million cubic feet of retail space.
Freshpet's product was available in 27,097 stores, with 23% of these stores now housing multiple fridges.
Q1 saw a 24% year-over-year increase in household penetration, reaching 12.367 million households.
The firm has been investing in improving the efficiency and reliability of their fresh pet food manufacturing systems.
With the added line in the Ennis facility being ahead of schedule, it is expected to commence operations by Q3-end.
The company is making efforts to increase their SKUs at each retailer, and plans on achieving this by adding second and third fridges.
Freshpet is focused on improving their customer acquisition costs, and reports stability in this area.
More details: Freshpet IR
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