A year on: how is Freshpet’s Ennis facility contributing to the business

A year after Freshpet launched the opening of its giant manufacturing facility in Ennis, Texas, GlobalPETS dives into the business’ financials and how the new-build is contributing to the business.

The large-scale facility currently spans over half a million square feet, with reports stating it will expand to 1 million.

The opening was a catalyst for business growth: since the launch, Freshpet has added more than 1,000 new stores to its retail distribution network, with more than 10 million households feeding their cats and dogs Freshpet products.

Positive trend

Frespet’s net sales show a positive incline in 2023, both in Q1 (+26.7%) and Q2 (+25.6%), compared to the year before.

According to the quarterly data, the pet food company noted sales were partially driven by “velocity gains,” a factor that can be attributed to developments such as the new Texas facility.

CEO Billy Cyr commented on the Q2 2023 results and said that Ennis Kitchen had experienced a successful start. “We are well-positioned to fulfill the long-term potential of Freshpet,” he explained.

The company forecasts that it is on track to surpass $1.8 billion (€1.6B) in net sales by 2027.

The cost

But the cost of the plant has somehow impacted the finances of the New Jersey firm.

In Q2 2022, the company’s net loss was $20.6 million (€19.2M), whereas this year, the figure was lower at $17 million (€15.8M). Freshpet estates that it was due to contribution profit from higher sales, partially offset by higher depreciation.

In the first quarter of 2023, net loss was higher after the initial start-up of the new plant, hitting $24.8 million (€23.1M), whereas the year before, it was $17.5 million (€16.3M). “The increase was due to higher depreciation and increased unabsorbed plant cost, partially offset by contribution profit from higher sales,” explains the company.