Freshpet posts a “solid” 34.4% sales increase, net loss rises

In the first six months of the year, net sales ​​reached $278.2 million compared to $202 million for the first six months of 2021 (+37.7%) driven by “velocity, pricing, distribution gains and innovation.”

“We made solid progress on our most important long-term value drivers in the second quarter, despite external challenges such as inflation and some short-term internal challenges with our operations,” commented CEO Billy Cyr.

Freshpet’s net loss reached $20.6 million in Q2 compared to $7.5 million in the same period for 2021. The company said that this increase was due to increase of media expenditure, partially offset by higher net sales and increased gross profit. 

Gross profit was $52.2 million in Q2 2022, compared to $43.1 million last year.

A 92% increase in online sales

The company further claimed that it continues to take the “necessary corrective actions” to cope with the current situation, such as another price increase to offset inflation.

According to figures provided by the company, Freshpet was the leading brand in the grocery channel and fourth place in the dog food category in the second quarter of the year.

85% of sales were conducted through brick-and-mortar, while e-commerce accounted for 7.8% – an increase of 92% against 2021.

Freshpet also noted that it is still on path to achieving its penetration goal of 11 million households and $1.25 billion in annual sales by 2025.

The producer also updated the construction of its new pet food manufacturing facility in Ennis, Texas, where it expects to produce “meaningful quantities” starting in the last three months of 2022.