Freshpet ( NASDAQ: FRPT ) recorded revenue growth of 43% in Q4 with sales driven by pricing, velocity, distribution gains and innovation. The pet food company also pointed to a strong start for the Ennis Kitchen business.
Adjusted gross profit was 33.0% of sales sales vs. 40.6% a year ago. The decreases in the gross profit rate of was primarily due to increased plant start-up cost, inflation of ingredient cost and labor, and quality issues, partially offset by increased pricing. Beginning with Q3 of 2022, the company is no longer adding back plant start-up expense in its calculation of adjusted gross profit, which for Q4 represented $8.0M.
Adjusted EBITDA for the quarter was $18.8M vs. $7.6M a year ago and $14.3M consensus.
Looking ahead, Freshpet ( FRPT ) expects sales of ~$750M vs. the consensus mark of $754.2M and adjusted EBITDA of at least $50M vs. $48.4M consensus. Capital expenditures of ~$240M are anticipated for 2023.
Shares of Freshpet ( FRPT ) are up 1.93% premarket to $62.24 following the earnings topper.
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Freshpet gains after strong pet food demand feeds Q4 results