Q3 2024 Freshpet Inc Earnings Call Transcript
Key Points
- Freshpet Inc (FRPT) achieved its 25th consecutive quarter of 25% year-on-year growth, demonstrating consistent top-line performance.
- The company reported a significant expansion in adjusted gross margin and adjusted EBITDA margin, indicating improved profitability.
- Freshpet Inc (FRPT) generated over $100 million in operating cash flow so far this year, showcasing strong cash management.
- The company successfully managed the balance between capacity and demand, achieving a customer order fill rate of 99% for the quarter.
- Freshpet Inc (FRPT) continues to expand its retail presence, with a 22% increase in total distribution points and more than 1,000 new stores added year-to-date.
- Despite strong performance, Freshpet Inc (FRPT) is cautious about updating long-term targets due to the dynamic market environment and inflation concerns.
- The company experienced a timing benefit in quality costs that will reverse in Q4, potentially impacting future margins.
- Freshpet Inc (FRPT) faces challenges in maintaining consistent performance at its Ennis facility due to ongoing expansion and new line startups.
- The company is still in the testing phase for expanding its European supply chain, indicating potential delays in international growth.
- Freshpet Inc (FRPT) acknowledges the need for careful capacity planning to avoid getting ahead of original growth plans, which may limit immediate expansion opportunities.
Greetings. Welcome to Freshpet's third-quarter 2024 earnings call. (Operator Instructions) As a reminder, this conference is being recorded.
It's now my pleasure to introduce Jeff Sonnek with ICR. Thank you. You may begin.
Thank you. Good morning, and welcome to Freshpet's third-quarter 2024 earnings call and webcast. On today's call are Billy Cyr, Chief Executive Officer; and Todd Cunfer, Chief Financial Officer. Scott Morris, President and Co-Founder, will also be available for Q&A.
Before we begin, please remember that during the course of this call, management may make forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These include statements related to our long-term strategy, 2027 goals and pace in achieving these goals, prospects for growth, timing of capacity expansion, new products and new technology, and 2024 guidance.
Words such as anticipate, believe, could, estimate, expect, guidance, intend, may, project, will, or similar
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