Freshpet Inc (FRPT) Reports 32.6% Increase in Q3 Net Sales and Raises 2023 Guidance
Freshpet Inc (NASDAQ:FRPT) reported a 32.6% increase in Q3 net sales to $200.6 million.
The company's net loss narrowed to $7.2 million, compared to a net loss of $18.4 million in the same period last year.
Adjusted EBITDA for Q3 2023 was $23.2 million, a significant improvement from $3.5 million in Q3 2022.
Freshpet Inc (NASDAQ:FRPT) raises its 2023 Adjusted EBITDA and net sales guidance following strong Q3 performance.
On November 6, 2023, Freshpet Inc (NASDAQ:FRPT) released its third-quarter financial results, reporting a significant increase in net sales and a narrowed net loss. The company's strong performance has led to an upward revision of its 2023 guidance.
Financial Highlights
For the third quarter of 2023, Freshpet Inc (NASDAQ:FRPT) reported net sales of $200.6 million, a 32.6% increase compared to $151.3 million in Q3 2022. The company's net loss for the quarter was $7.2 million, a significant improvement from a net loss of $18.4 million in the same period last year. Adjusted EBITDA for the quarter was $23.2 million, compared to $3.5 million in Q3 2022.
For the first nine months of 2023, the company reported net sales of $551.5 million, a 28.4% increase compared to the same period in 2022. The net loss for the period was $48.9 million, compared to a net loss of $56.6 million in the same period last year. Adjusted EBITDA for the first nine months of 2023 was $35.2 million, compared to $1.3 million in the same period in 2022.
Company's Commentary
Freshpets Chief Executive Officer, Billy Cyr, commented on the results, stating,
Fiscal year 2023 is shaping up to be the kind of year we had hoped it would delivering strong top-line and bottom-line growth that puts us ahead of the pace needed to deliver our 2027 goals. As a result of our strong third quarter performance, we are raising our 2023 guidance today."
Balance Sheet and Outlook
As of September 30, 2023, Freshpet Inc (NASDAQ:FRPT) reported cash and cash equivalents of $338.1 million and $392.6 million of debt outstanding net of $9.9 million of fees. The company's cash from operations for the first nine months of 2023 was $39.0 million, an increase of $92.6 million compared to the same period in 2022.
Following the strong Q3 performance, the company has raised its full-year 2023 Adjusted EBITDA and Net Sales guidance and reiterated its capital expenditure guidance.
Financial Tables
The company's detailed financial tables, including the Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Operations and Comprehensive Loss, and Condensed Consolidated Statement of Cash Flows, provide a more comprehensive view of Freshpet Inc (NASDAQ:FRPT)'s financial performance.
Investors and potential GuruFocus.com members interested in Freshpet Inc (NASDAQ:FRPT) can find more detailed information in the full earnings report.
Explore the complete 8-K earnings release (here) from Freshpet Inc for further details.
This article first appeared on GuruFocus.
