Pet food maker Freshpet's Q2 sales growth slows more than expected, FY forecast lowered

Freshpet

04/08/2025 11:39

Overview

Freshpet Q2 net sales rise 12.5% to $264.7 mln, missing analyst expectations

Net income for Q2 at $16.4 mln, compared to a loss last year

Adjusted EBITDA for Q2 beats estimates, reaching $44.4 mln, per LSEG data

Outlook

Freshpet expects 2025 net sales to rise 13% to 16% from 2024, vs 15% to 18% earlier

Company maintains 2025 Adjusted EBITDA guidance at $190 mln to $210 mln

Freshpet reduces 2025 capital expenditures guidance to ~$175 mln, from  ~$225 mln

Company removes 2027 $1.8 bln net sales target due to slower growth

Result Drivers

VOLUME GAINS - Net sales increase driven by 10.8% volume gains and favorable price/mix of 1.7%

LOWER INPUT COSTS - Gross profit rise attributed to lower input costs and reduced quality costs

SG&A REDUCTION - Decreased SG&A expenses due to lower share-based and variable compensation, offset by increased media spend

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$264.70 mln
$268 mln (17 Analysts)
Q2 Net Income
$16.40 mln
Q2 Adjusted EBITDA
Beat
$44.40 mln
$39.40 mln (17 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the food processing peer group is "buy"

Wall Street's median 12-month price target for Freshpet Inc is $94.50, about 30.3% above its August 1 closing price of $65.85

The stock recently traded at 41 times the next 12-month earnings vs. a P/E of 43 three months ago

Press Release: ID:nGNXb4qL6Y

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)