Pet food maker Freshpet tops Q3 sales estimates on volume gains

Freshpet

03/11/2025 11:38

Overview

Freshpet Q3 net sales rise 14% to $288.8 mln, beating analyst expectations

Adjusted EBITDA for Q3 beats estimates, reflecting strong operational performance

Company achieves positive free cash flow in Q3, expects full-year 2025 positivity

Outlook

Freshpet revises 2025 net sales growth to ~13% from 13%-16% previously

Adjusted EBITDA for 2025 expected between $190 mln and $195 mln

Capital expenditures for 2025 reduced to ~$140 mln from ~$175 mln

Result Drivers

VOLUME GAINS - Net sales increase driven by 12.9% volume gains and 1.1% favorable price/mix

STRATEGY ADJUSTMENTS - Co adapted marketing, distribution, and innovation strategies to changing consumer behavior, per CEO Billy Cyr

COST MANAGEMENT - Achieved positive free cash flow by lowering capital spending plans, expects full-year 2025 positivity

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Beat
$288.80 mln
$285.80 mln (17 Analysts)
Q3 Net Income
$101.70 mln
Q3 Adjusted EBITDA
Beat
$54.60 mln
$54.30 mln (16 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 6 "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 $70.00, about 29.7% above its October 31 closing price of $49.21

The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 43 three months ago

Press Release: ID:nGNX5TS8VL

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(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.)