Freshpet, Inc. FRPT reported fourth-quarter fiscal 2024 results, wherein the top line met the Zacks Consensus Estimate, while the bottom line missed the same. Both the metrics increased year over year.

FRPT’s Quarterly Performance: Key Metrics and Insights

Freshpet reported earnings per share (EPS) of 36 cents, which increased from 31 cents in the same quarter last year. The metric missed the Zacks Consensus Estimate of 44 cents.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Freshpet reported consolidated net sales of $262.7 million that came almost in line with the Zacks Consensus Estimate of $263 million. Net sales increased 22% from $215.4 million posted in the year-ago period. This year-over-year growth was driven by a 20.7% gain in sales volume.

Freshpet’s adjusted gross profit increased 42.6% year over year to $126.3 million. The adjusted gross margin expanded 700 basis points (bps) to 48.1% compared with 41.1% in the fourth quarter of fiscal 2023. This improvement was driven by lower input costs, reduced quality-related expenses and better leverage on plant costs.

Adjusted SG&A expenses rose 28.7% year over year to $73.6 million in the quarter. As a percentage of net sales, adjusted SG&A expenses increased 140 bps year over year to 28%.

The adjusted EBITDA was $52.6 million compared with $31.3 million in the year-ago period. This growth was driven by a higher gross margin, partially offset by increased SG&A expenses.

FRPT’s Financial Health Snapshot

Freshpet exited the quarter with cash and cash equivalents of $268.6 million, total debt outstanding of $395.2 million, net of $7.3 million in unamortized debt issuance costs and total shareholders’ equity of $1,055.4 million.

For the year ended Dec. 31, 2024, net cash provided by operating activities was $154.3 million, while capital expenditures totaled $187.1 million. Management expects 2025 capital expenditures to be approximately $250 million.

What to Expect From FRPT in 2025

For 2025, management anticipates net sales in the range of $1.18 billion to $1.21 billion, indicating an increase of 21% to 24% from 2024. This Zacks Rank #1 (Strong Buy) company foresees adjusted EBITDA to be $210 million compared with $161.8 million recorded in 2024.

FRPT shares lost 5.7% last Friday. In the past three months, the stock has lost 35.2% compared with the industry’s decline of 4.5%.

Image Source: Zacks Investment Research

Other Top-Ranked Stocks

Post Holdings, Inc. POST operates as a consumer-packaged goods holding company in the United States and internationally. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Post Holdings’ current fiscal-year sales and earnings indicates growth of 0.3% and 2.2%, respectively, from the prior-year reported levels. POST delivered a trailing four-quarter earnings surprise of 22.3%, on average.

Lancaster Colony Corporation LANC engages in the manufacturing and marketing of specialty food products for the retail and foodservice channels in the United States. It currently holds a Zacks Rank #2. LANC delivered a trailing four-quarter earnings surprise of 1.7%, on average.

The consensus estimate for Lancaster Colony’s current financial-year sales and earnings implies growth of 3.1% and 6.1%, respectively, from the year-ago period’s reported figure.

Tyson Foods, Inc. TSN operates as a food company worldwide. It currently has a Zacks Rank #2. TSN delivered a trailing four-quarter earnings surprise of 52%, on average.

The Zacks Consensus Estimate for Tyson Foods’ current financial-year sales and earnings indicates growth of 0.9% and 22.6%, respectively, from the prior-year reported levels.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Tyson Foods, Inc. (TSN) : Free Stock Analysis Report

Freshpet, Inc. (FRPT) : Free Stock Analysis Report

Post Holdings, Inc. (POST) : Free Stock Analysis Report

Lancaster Colony Corporation (LANC) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research