Freshpet’s sales and net loss ramping up
The American pet food company sold 38.7% more in the first months of the year and considerably increased its expenses.
Sales accounted for $429.5 million for the first 9 months of the year compared to $309.6 million in 2021. The numbers were driven by “pricing, velocity distribution gains, and innovation.”
The same trend was observed in the third quarter of the year ending September 30, where the company posted sales of $151.3 million. In the same period of 2021, the amount was $107.6 million.
Freshpet’s CEO, Billy Cyr, commented to investors that the company delivered a “strong, on-plan quarter.”
Gross profit in the quarter was $44.5 million, while in the same period of 2021, it reached $41.5 million.
Freshpet’s net loss accounted for $18.4 million in the last quarter, compared to $2.1 million in 2021. The company justified these numbers due to the increased selling, general, and administrative expenses, including $7.2 million in media spent.
Market penetration
According to the figures, Freshpet’s penetration registered a yearly growth of 14% until the end of October, reaching 5 million households.
The average spending of each customer was $149.60, an increase of 19% from last year. The number of buyers who purchased at least $40 in the recent 10 weeks increased by 31% until October.
The company forecasts net sales of more than $575 million in 2022 (+35%). Capital expenditures for 2022 are expected to be approximately $290 million, a reduction of $30 million from the previous forecast.