Overview

* Freshpet ( FRPT ) Q2 net sales rise 12.5% to $264.7 mln, missing analyst expectations

* Net income for Q2 at $16.4 mln, compared to a loss last year

* Adjusted EBITDA for Q2 beats estimates, reaching $44.4 mln, per LSEG data

Outlook

* Freshpet ( FRPT ) expects 2025 net sales to rise 13% to 16% from 2024, vs 15% to 18% earlier

* Company maintains 2025 Adjusted EBITDA guidance at $190 mln to $210 mln

* Freshpet ( FRPT ) reduces 2025 capital expenditures guidance to ~$175 mln, from ~$225 mln

* Company removes 2027 $1.8 bln net sales target due to slower growth

Result Drivers

* VOLUME GAINS - Net sales increase driven by 10.8% volume gains and favorable price/mix of 1.7%

* LOWER INPUT COSTS - Gross profit rise attributed to lower input costs and reduced quality costs

* SG&A REDUCTION - Decreased SG&A expenses due to lower share-based and variable compensation, offset by increased media spend

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Miss $264.70 $268 mln

mln (17

Analysts

)

Q2 Net $16.40

Income mln

Q2 Beat $44.40 $39.40

Adjusted mln mln (17

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 4 "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 ( FRPT ) is $94.50, about 30.3% above its August 1 closing price of $65.85

* The stock recently traded at 41 times the next 12-month earnings vs. a P/E of 43 three months ago

Press Release:

(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.)