LOS ANGELES
,
November 15, 2023
(press release)
–
In its third quarter earnings call on November 6, 2023, Freshpet expressed confidence in achieving its 2027 goals, outlining a trajectory of 25% annual top-line growth, $1.8 billion in net sales, and an 18% adjusted EBITDA margin. The third quarter's performance surpassed expectations, featuring a robust 33% net sales growth and improved profitability. The company is committed to addressing operational issues, particularly those affecting margins, while sustaining net sales growth. Operational improvements in quality, logistics, and input costs have resulted in a 40.2% adjusted gross margin. Positive sales and growth trends, including strong resilience to higher pricing and consistent volume growth, are noted. Additional highlights include record fridge placements, e-commerce channel growth, and successful product launches. The company is actively expanding capacity, adding staff and enhancing production capabilities. Amid economic uncertainties, the company observes a growing demand for high-quality pet foods and notes a trend of becoming more mainstream and main meal. The outlook remains bullish for both the current year and the company's long-term prospects, emphasizing Freshpet's potential to become a prominent brand in a growing market.
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