LOS ANGELES
,
February 27, 2023
(Industry Intelligence Inc.)
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Freshpet’s executive team shared insights into the company’s outlook and plans for the next quarter and the rest of 2023 during a Q4 earnings call on February 27, 2023. Co-founder, president & COO Scott James Morris elaborated on plans to expand Freshpet’s home style product line, Spring & Sprout, which features plant-based proteins, saying there is opportunity for leadership positioning of the line. Morris also touches on expanding the company’s e-commerce presence with a new approach by either the end of this quarter or the beginning of next quarter. Morris revealed that the e-commerce offering is expected to be “incremental and differentiated” compared to what is available now and is “going to be smaller this year, but we think long term, it can have a significant -- be a significant contributor to the growth”. Executive director and CEO William Cyr commented that the company expects to grow its retail footprint to more than 1.7 million cubic feet by the end of the year, including expansion to approximately 1,200 net new stores, the addition of 3,000 second and third of its fridges to existing stores and fridge upgrades in approximately 1,000 stores. CFO Todd Cunfer adds that net sales are projected to be up 26% year-over-year in 2023, although the growth is likely to be less than the Nielsen measured consumption growth since the company has already completed the trade inventory refill in Q4 and will be lapping the trade inventory refill from a year ago. Logistics costs are also expected to improve by at least 100 basis points as fill rates are up and the company’s distribution center in Dallas will be up and running. The company also plans to ramp up utilization of its new facility in Ennis, Texas, with expectations to ship a wide variety of products from the new line in the second quarter. The company will be shipping product from Pennsylvania to the Dallas site in the first and second quarter to support shipments in Texas and the West Coast until the Ennis line becomes fully capable of taking over production for that demand.
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