Freshpet (FRPT) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 delivered record net sales of $975.2 million, up 27% year over year, driven by volume gains, increased household penetration, and operational effectiveness.

• Achieved first full-year positive net income of $46.9 million, with EPS of $0.94 and operating cash flow of $154.3 million.

• Added 2 million new households, including 800,000 heavy users, and expanded distribution with 1,300 new stores and nearly 2,300 new fridges.

• Long-term industry tailwinds, such as pet humanization and demand for fresh, natural foods, continue to support growth.

• Volume-based growth and disciplined capacity management were key performance drivers.

Financial highlights

• FY 2024 net sales reached $975.2 million, up 27% year over year; Q4 net sales were $262.7 million, up 22%.

• Adjusted EBITDA for FY 2024 was $161.8 million (16.6% margin), up 143% year over year; Q4 adjusted EBITDA was $52.6 million (20% margin).

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

• Operating cash flow for FY 2024 was $154.3 million, with cash on hand of $268.6 million 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

• FY 2025 net sales guidance: $1.18–$1.21 billion (21–24% growth), with adjusted EBITDA expected to exceed $210 million and capital expenditures projected at $250 million.

• Updated 2027 targets: $1.8 billion net sales, 48% adjusted gross margin (up from 45%), 22% adjusted EBITDA margin (up from 18%), and 20 million households.

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

• Modest adjusted gross margin expansion anticipated for 2025.