Freshpet (FRPT) Barclays 17th Annual Global Consumer Staples Conference summary

Business transformation and growth

• Organization has doubled in size since 2021, with significant increases in users and employees.

• Opened a major new production facility in Ennis, Texas, targeting over $1 billion in fresh pet food output.

• Focused on talent acquisition and workforce stability, reducing turnover and improving execution.

• EBITDA margin improved by about 10 points, with $100 million incremental EBITDA expected this year.

• On track for positive net income and free cash flow by 2026.

Key growth drivers and business model

• Sustained over 25% net sales growth for 24 consecutive quarters, primarily volume-driven.

• Category benefits from pet humanization and demand for innovation in pet food.

• Differentiated business model with unique manufacturing technology and strong consumer loyalty.

• Avoids promotions and discounts, focusing on consistent value and advertising-driven household penetration.

Disciplined growth and profitability

• Targeting 25% growth as the optimal balance for execution, margin expansion, and prudent CapEx.

• Achieved scale inflection point, with efficiency gains from the Ennis facility and network of over 30,000 fridges.

• Run rate approaching $1 billion, with expectations to reach that level next year.

• Business compared to category-creating companies, with rapid profitability expected as scale increases.