08:42 AM EDT, 05/06/2024 (MT Newswires) -- Freshpet ( FRPT ) swung to a surprise first-quarter profit with sales increasing annually and topping market estimates, as the pet food company benefited from volume gains and lower logistics costs.

The company posted net income of $0.37 a share for the March quarter, compared with a loss of $0.52 the year before. The consensus on Capital IQ was for a per-share loss of $0.19. Sales surged 34% to $223.8 million driven by volume growth of 31%, surpassing the Street's view for $216.1 million.

Shares of Freshpet ( FRPT ) have risen about 25% so far this year and climbed 14% in premarket activity on Monday.

"The strength of the Freshpet ( FRPT ) business model and consumer proposition continue to drive the robust net sales growth investors have come to expect from us, and our intense focus on operational improvements is delivering the margin expansion we knew we could achieve with additional scale," Chief Executive Billy Cyr said in a statement. "While we are very bullish on our prospects for continued profit improvement, our focus now is on delivering consistently strong performance."

Gross profit as a percentage of net sales increased to 39.4% from 30.3% amid improved leverage on plant expenses and reduced quality costs. Selling, general and administrative costs also declined as a percentage of sales, reflecting lower relative logistics costs.

"Our strong first-quarter results provide solid evidence that we can deliver our long-term financial goals -- and we are now determined to prove that we can achieve this level of performance consistently over time," Cyr said. "If we continue to do well, we will create significant shareholder value."

For full-year 2024, the company continues to project sales of at least $950 million, representing a year-on-year gain of at least 24%. The Street is looking for revenue of $955.4 million.

Freshpet ( FRPT ) now anticipates adjusted earnings before interest, taxes, depreciation and amortization of at least $120 million for the current year, up from its prior guidance range of $100 million to $110 million. In the first quarter, the metric came in at $30.6 million. The company held its capital expenditures outlook of roughly $210 million.

Price: 125.20, Change: +15.62, Percent Change: +14.25