Freshpet, Inc. Provides Preliminary Fourth Quarter Net Sales

Rhea-AI Summary

Freshpet reported a strong financial performance with full-year 2021 net sales expected to reach $425.5 million, a growth of 33.5% year-over-year. The fourth quarter net sales are projected at $115.9 million, marking a 37.1% increase. The company is optimistic, anticipating an adjusted EBITDA of approximately $42 million for the year. Additionally, Freshpet's addressable market has expanded by 25%, reaching 25 million households, indicating robust demand for its fresh pet food products despite previous production challenges.

Positive

• Projected fourth quarter 2021 net sales of $115.9 million, a 37.1% increase year-over-year.
• Full year 2021 net sales expected to reach $425.5 million, reflecting a growth of 33.5% compared to the prior year.
• Adjusted EBITDA guidance remains strong at approximately $42 million for full year 2021.
• 25% increase in the addressable market to roughly 25 million households, highlighting strong market demand.

Negative

• Limited availability and production issues that constrained growth in 2021.

Full Year 2021 Growth of 33.5% Marks Fifth Consecutive Year of Accelerating Net Sales

Reiterates Adjusted EBITDA Guidance

Announces 25% Increase in the size of the Addressable Market to ~25 Million Households

SECAUCUS, N.J., Jan. 10, 2022 (GLOBE NEWSWIRE) -- Freshpet, Inc. (“Freshpet” or the “Company”) (NASDAQ: FRPT) today announced preliminary fourth quarter and full year 2021 net sales in conjunction with the Company’s presentation at the ICR Conference. The presentation is available on the Company’s investor relations website.

Preliminary fourth quarter 2021 net sales are expected to be $115.9 million, representing growth of 37.1% compared to the prior year period. Preliminary full year 2021 net sales are expected to be $425.5 million, representing growth of 33.5% compared to the prior year period. The Company continues to expect adjusted EBITDA to be approximately $42 million for full year 2021.

“We are pleased to see consumption trends accelerate through December to approximately 29%for the trailing four week period ended January 1, 2022, which was consistent with our expectations and demonstrates the significant demand for our products despite limited availability and production issues that constrained growth in 2021,” commented Billy Cyr, Freshpet’s Chief Executive Officer. “Turning the page to 2022, we are in a significantly improved position from a manufacturing standpoint – consistently producing at levels that can support the strong growth we expect. However, we are especially encouraged by the ongoing growth of our ‘Prime Prospects’ which represent our Total Addressable Market (TAM) – we estimate that in the past two years, our target market has grown by approximately 25%, from 20 million households in 2019 to 25 million households at the end of 2021. This is a powerful datapoint that speaks to the alignment of Freshpet with today’s discerning pet parents and Freshpet’s long term growth opportunity.”

About Freshpet

Freshpet’s mission is to improve the lives of dogs and cats through the power of fresh, real food. Freshpet foods are blends of fresh meats, vegetables and fruits farmed locally and made at our Freshpet Kitchens.  We thoughtfully prepare our foods using natural ingredients, cooking them in small batches at lower temperatures to preserve the natural goodness of the ingredients. Freshpet foods and treats are kept refrigerated from the moment they are made until they arrive at Freshpet Fridges in your local market.

Our foods are available in select mass, grocery (including online), natural food, club, and pet specialty retailers across the United States, Canada and Europe. From the care we take to source our ingredients and make our food, to the moment it reaches your home, our integrity, transparency and social responsibility are the way we like to run our business. To learn more, visit www.freshpet.com.

Connect with Freshpet:

https://www.facebook.com/Freshpet 

https://twitter.com/Freshpet 

http://instagram.com/Freshpet 

http://pinterest.com/Freshpet 

https://en.wikipedia.org/wiki/Freshpet 

https://www.youtube.com/user/freshpet400 

Forward Looking Statements

Certain statements in this release constitute “forward-looking” statements. These statements are based on management’s current opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results. These forward-looking statements are only predictions, not historical fact, and involve certain risks and uncertainties, as well as assumptions. Actual results or events could differ materially from those stated, anticipated or implied by such forward-looking statements. Such forward-looking statements are made only as of the date of this release. Freshpet undertakes no obligation to publicly update or revise any forward-looking statement because of new information, future events or otherwise, except as otherwise required by law. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements.

Contact
ICR
Jeff Sonnek
646-277-1263
jeff.sonnek@icrinc.com

FAQ

What are Freshpet's projected net sales for Q4 2021?

Freshpet projects fourth quarter 2021 net sales to be $115.9 million, representing a 37.1% increase year-over-year.

How much did Freshpet's net sales grow in 2021?

Freshpet's net sales are expected to grow by 33.5% in 2021, reaching approximately $425.5 million.

What is Freshpet's adjusted EBITDA guidance for 2021?

Freshpet anticipates an adjusted EBITDA of about $42 million for the full year 2021.

How much has Freshpet's addressable market increased?

Freshpet's addressable market has grown by 25% to approximately 25 million households.

What consumption trends did Freshpet report for December 2021?

Freshpet noted an acceleration in consumption trends to about 29% for the trailing four-week period ending January 1, 2022.