Freshpet Cuts Its Losses and Raises Guidance on Strong Pet Food Demand

Freshpet (FRPT) narrowed its second-quarter loss and raised its guidance as more pet owners are buying its specialty dog and cat food.

The company reported a quarterly loss of $0.03 per share, down from $0.35 a year ago and in line with consensus estimates of analysts polled by Visible Alpha. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at $35.1 million, better than expected. Sales rose 28.3% year-over-year to $235.3 million, also beating forecasts, entirely driven by volume gains of 28.3%.

Freshpet Raises FY Adjusted EBITDA, Sales Outlook

The company raised its full-year outlook for adjusted EBITDA to at least $140 million from the previous guidance of at least $120 million. It sees sales of at least $965 million, compared with the earlier prediction of at least $950 million.

“We are raising our net sales and Adjusted EBITDA guidance for the year to reflect our outperformance in the first half, as well as our conviction in our ability to execute in the second half of the year,” Chief Executive Officer (CEO) Billy Cyr said.

The positive news wasn’t enough for Freshpet shares to overcome Monday’s market rout, as shares slipped 1.3% to $120.50 as of 10:50 a.m. ET. Still, they are up nearly 40% for the year.