Freshpet (FRPT) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 delivered record net sales of $975.2 million, up 27% year-over-year, with significant profitability improvement and the first full-year positive net income of $46.9 million.

• Adjusted EBITDA more than doubled to $161.8 million, driven by volume gains, increased household penetration, and operational discipline.

• Growth was supported by expanded distribution, new store and fridge placements, and minimal reliance on trade promotions.

• The business benefited from long-term industry tailwinds, including pet humanization and demand for fresh, natural foods.

• Operational effectiveness and disciplined capacity management enabled high fill rates and improved cost structure.

Financial highlights

• Full year net sales reached $975.2 million, up 27% year-over-year; Q4 net sales were $262.7 million, up 22%.

• Adjusted gross margin improved to 46.5% for FY 2024 (up from 40.0% in FY 2023); Q4 adjusted gross margin was 48.1%.

• Adjusted EBITDA for FY 2024 was $161.8 million (16.6% margin), up from $66.6 million (8.7%) in FY 2023; Q4 adjusted EBITDA was $52.6 million (20% margin).

• Operating cash flow for the year was $154.3 million, with $268.6 million cash on hand at year-end.

• Net income for FY 2024 was $46.9 million, compared to a net loss of $33.6 million in FY 2023.

Outlook and guidance

• Fiscal 2025 net sales expected to be $1.18–$1.21 billion (21–24% growth), with adjusted EBITDA of at least $210 million and capital expenditures of approximately $250 million.

• 2027 targets raised: net sales of $1.8 billion, adjusted gross margin of 48% (was 45%), and adjusted EBITDA margin of 22% (was 18%).

• Free cash flow positive expected by 2026, with growth efforts to be self-funded.

• Guidance reflects a lower growth rate for 2025 due to capacity timing and technology investments.