NASDAQ$FRPT

Freshpet Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Freshpet's second quarter growth rate accelerated, demonstrating the potential of the brand and the potency of their Feed the Growth strategy.

Freshpet reported a net sales increase of 35.8% to $108.6 million for the second quarter of 2021. However, the company experienced a net loss of $7.5 million compared to a net income of $0.2 million in the prior year period, and an Adjusted EBITDA of $10.9 million compared to $11.2 million in the prior year period. The company raised its full year 2021 net sales guidance to exceed $445.0 million.

  • Net sales increased by 35.8% to $108.6 million.
  • Net loss was $7.5 million, compared to a net income of $0.2 million in the prior year.
  • Adjusted EBITDA was $10.9 million, compared to $11.2 million in the prior year.
  • The company expects to exceed net sales of $445.0 million for the full year 2021.

Headline financials

Total Revenue

$109M

Previous: $80M+35.8%
EPS (adj)

-$0.17

Previous: $0.00-4707.0%
Gross Margin

39.7%

Previous: 42.4%-6.4%
Adjusted EBITDA

$10.9M

Previous: $11.2M-2.7%
Free Cash Flow

-$7.48M

Previous: $153K-4982.6%
Net Income

-$7.48M

Previous: $153K-4982.6%
Operating Income

-$6.47M

Previous: $231K-2899.4%
Gross Profit

$43.1M

Previous: $33.9M+27.0%
Cash & Equivalents

$280M

Previous: $108M+160.2%
Total Assets

$783M

Previous: $412M+90.2%
Stock-Based Comp

$6.69M

Previous: $2.29M+192.6%

Revenue & EPS history

Freshpet · Revenue · Quarterly

$109M

Q2 2021+35.8%vs Q2 2020
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Forward guidance

For the full year 2021, the Company updated its net sales guidance and expects to exceed net sales of $445.0 million, an increase of ~ 40% from 2020, and to exceed Adjusted EBITDA of $61.0 million, an increase greater than 30% from 2020.

Tailwinds

  • Expects to exceed net sales of $445.0 million, an increase of ~ 40% from 2020
  • Anticipates strong brand potential and effective Feed the Growth strategy.
  • Expects distribution gains and innovation to drive net sales.
  • Aims to change the way more people nourish their pets forever.
  • Expects to exceed Adjusted EBITDA of $61.0 million, an increase greater than 30% from 2020

Headwinds

  • Facing inflation in beef costs.
  • Experiencing increased processing costs as production capacity expands.
  • SG&A increased to 45.6% for the second quarter of 2021 compared to 42.1% in the prior year period.
  • Increased logistics costs as a percentage of net sales.
  • Cannot provide a reconciliation between its forecasted adjusted EBITDA and net income metrics without unreasonable effort due to the unavailability of reliable estimates for certain components of net income.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+1.4%

Avg return

Earnings day

+2.8%

Avg return

5 days after

+3.6%

Avg return

30 days after

67%

37 / 55 earnings

Positive

+22.0%

Q2 2016

Best reaction

-28.7%

Q3 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-8.7%-17.6%-17.4%
Q4 2025+5.5%+13.3%-19.3%
Q3 2025+11.3%+12.3%+26.4%
Q1 2025+3.7%+5.4%+7.0%
Q4 2024-18.5%-18.0%-33.6%
Q3 2024+13.4%+17.0%+17.0%
Q2 2024+4.1%+4.9%+13.8%
Q1 2024+10.1%+9.6%+20.0%
Q4 2023+17.7%+20.4%+25.8%
Q3 2023+16.5%+15.1%+24.4%
Q2 2023+8.5%+7.9%+1.3%
Q1 2023-1.5%-0.6%-5.8%
Q4 2022+1.8%+2.7%+6.1%
Q3 2022+7.1%+14.1%+10.2%
Q2 2022-12.2%-12.4%-28.4%
Q1 2022-11.2%-30.7%-27.7%
Q4 2021+17.4%+5.1%+12.2%
Q3 2021-16.8%-17.6%-28.3%
Q2 2021-3.9%-6.8%-11.2%
Q1 2021-5.1%-4.5%-6.1%
Q4 2020-9.8%-3.3%-10.4%
Q3 2020+9.5%+18.1%+17.0%
Q2 2020+9.1%+6.4%+18.8%
Q1 2020+5.8%+1.1%+5.8%
Q4 2019-9.0%-9.8%-13.9%
Q3 2019-0.5%+7.0%+6.0%
Q2 2019-17.8%-11.1%+8.9%
Q1 2019-0.4%+2.5%+2.1%
Q4 2018+4.1%+6.2%+12.1%
Q3 2018-4.7%+0.4%-11.7%
Q2 2018+6.8%+14.5%+28.2%
Q1 2018-3.5%+5.3%+19.4%
Q4 2017-8.6%-10.6%-20.0%
Q3 2017+7.6%+10.5%+20.3%
Q2 2017+1.8%-5.8%-0.9%
Q1 2017+12.2%+19.0%+33.8%
Q4 2016+15.8%+18.4%+16.3%
Q3 2016+2.9%-4.7%+5.3%
Q2 2016+22.0%+26.1%+17.7%
Q1 2016+4.7%
Q4 2015+9.9%
Q3 2015-28.7%
Q2 2015-13.5%
Q1 2014+0.7%
Q4 2012+1.2%
Q4 2014+1.2%
Q3 2012+1.2%
Q2 2014+1.2%
Q2 2013+1.2%
Q2 2012+1.2%
Q1 2013+1.2%
Q1 2012+1.2%
Q3 2013+3.1%
Q3 2014+3.1%
Q4 2013+3.1%

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