Freshpet charts a path toward profitability in 2023

Freshpet hit $766.9 million (€706.8M) in sales in the 2023 financial year, an increase of 28.8% compared to the previous year.

Back in November, the company had bumped up its guidance following a “strong” third quarter and estimated net sales for 2023 to be $755 million (€695.8M). 

According to a company spokesperson, this is the 6th consecutive year of more than 25% growth. In 2022, sales increased by a record 40%.

In 2023, Freshpet reached 11.5 million households, 1.8 million more than in 2022.

Losses and profits

Freshpet also reduced its net losses from $59.5 million (€54.8M) to $33.6 million (€30.9M). In the fourth quarter of 2023, the company reported a net income of $15.3 million (€14.1M), compared to a net loss of $2.9 million (€2.6M) seen in the year prior. 

The company’s gross profit stood at $250.9 million (€231.2M) from January to December 2023, up from $186 million (€171.4M) in 2022. The decrease in net loss is attributed to contribution profit from higher sales, increased gross margins and reduced logistics costs as a percentage of net sales. 

Freshpet CEO Billy Cyr believes the company has reached an “inflection point” following what he describes as “strong 2023 results.” 

“The significant investments we have made to create scale and extend our first mover advantage have begun to generate improved profitability and significant operating cash flow,” Cyr states, adding that this is the Fresh Future plan’s promise they announced last year, “and it is working,” he says.

Outlook

Freshpet hopes to achieve net sales of “at least” $950 million (€875.5M) this year, marking a 24% rise from 2023. 

“In 2024, we intend to continue making strong margin improvement and demonstrate continued capital discipline while sustaining the net sales growth that Freshpet has become known for, further driving profitability and creating significant shareholder value,” Cyr concludes