Freshpet Inc ( FRPT ) shares are shooting higher after the company reported better-than-expected first-quarter FY24 earnings.

The company reported first-quarter FY24 sales growth of 33.6% year-on-year to $223.85 million, beating the analyst consensus of $216.418 million.

Net sales for the first quarter of 2024 were driven by volume gains of 30.6%.

Gross profit increased 73.6% Y/Y to $88.2 million, with the margin expanding from 30.3% to 39.4%. The increase in gross margin was primarily due to improved leverage on plant expenses, reduced quality costs, and lower input cost as a percentage of sales.

Selling, general and administrative expenses rose 10.2% to $79.7 million. The operating income for the quarter was $8.5 million, with an operating margin of 3.8%.

Adjusted EBITDA was $30.6 million, compared to $3 million last year. EPS of $0.37 beat the analyst consensus estimate of $(0.24).

The company held $257.8 million in cash and equivalents as of March-end.

“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,” commented CEO Billy Cyr.

Outlook: Freshpet ( FRPT ) continues to see FY24 revenue of at least $950 million versus an estimate of $954.98 million.

The company raised FY24 adjusted EBITDA guidance from $100 million – $110 million prior guidance to at least $120 million. FRPT sees capital expenditures of ~$210 million, unchanged from previous guidance.

Price Action: FRPT shares are trading higher by 14.5% at $125.50 in premarket at the last check Monday.