The Freshpet earnings call for the fourth quarter and full year ending December 31, 2024, took place on February 20, 2025, at 6:30 a.m. ET. The call was led by CEO Billy Cyr and CFO Todd Cunfer, who discussed the company’s performance and outlook.
During the call, it was highlighted that Freshpet’s results for 2024 showcased substantial growth and increased profitability. The company achieved significant sales growth driven largely by volume gains, driven by increased household penetration and retail expansion. Freshpet’s 2024 achievements included adding approximately two million households to its customer base and distributing their products to 1,300 new stores. Notably, Freshpet maintained over 99% fill rates, sold 27% more volume than the previous year, and reduced input, quality, and logistics costs, leading to a gross margin improvement.
For the first time, Freshpet reported positive net income, with earnings per share reaching $0.94 and operating cash flow amounting to $154 million. Looking forward, the company sees significant growth potential, particularly as consumer preferences shift towards fresher and more natural pet foods.
Freshpet’s market presence within the U.S. pet food category stands at 3.4% market share in the dog food and treats segment, indicating substantial room for growth. The company holds a commanding 96% market share in the gently cooked fresh/frozen branded dog food segment. Freshpet’s strategy involves concentrating on heavy users and increasing the frequency of fridge placements in high-velocity stores to capitalize on growth opportunities.
For fiscal year 2025, Freshpet projects net sales between $1.18 billion to $1.21 billion, reflecting growth between 21% and 24%, along with adjusted EBITDA of at least $210 million. The company plans capital expenditures of approximately $250 million, aimed at supporting capacity expansion.
The call concluded with CEO Billy Cyr expressing confidence in Freshpet’s future prospects. He emphasized the company’s commitment to leveraging its brand strength, operational improvements, and long-term growth strategy while aiming for continued profitability enhancements. CFO Todd Cunfer reiterated the stability of the company’s operations and shared optimism regarding the raised 2027 margin targets.
No Q&A session followed the call, as Freshpet was scheduled to present later that morning at the CAGNY conference.
