Freshpet, Inc. (NASDAQ: FRPT) witnessed a notable uptrend in its stock price during the regular trading session on Monday, marking a significant ascent. The shares of Freshpet exhibited a remarkable surge of 16.91%, ultimately settling at a closing price of $68.10. This impressive market performance saw a substantial trading volume of 3.5 million shares exchanged. Notably, this surge was ignited by the publication of the company’s quarterly financial results, which were unveiled just before the commencement of the trading session.
In its third-quarter financial report for the period ending on September 30, 2023, Freshpet (FRPT) revealed compelling figures and achievements. FRPT saw a remarkable growth in net sales, which escalated by a substantial 32.6%, reaching an impressive total of $200.6 million. This represents a significant increase from the last-year’s corresponding quarter when net sales amounted to $151.3 million. The rise in net sales can be attributed to robust volume gains and an upward adjustment in pricing.
Furthermore, the substantial enhancement in gross profit margin is evident, standing at $66.3 million, accounting for 33.0% of the total sales value. This signifies a remarkable uptick from the preceding year’s gross earnings of $44.5 million, constituting 29.4% of net sales. The upswing in gross profit was chiefly driven by reduced unabsorbed plant costs, which were incurred as Freshpet expanded into the Ennis facility, as well as lowered expenses related to quality and inputs.
Freshpet significantly reduced its net loss, which dwindled to $7.2 million, a substantial drop from the previous year’s $18.4 million. This remarkable reduction in net loss was primarily attributable to the contribution profit derived from the heightened sales volume.
In a forward-looking gesture, members of Freshpet’s executive management team are set to participate in the forthcoming Stephens Annual Investment Conference in Nashville, Tennessee. They are scheduled to present their insights and updates on Wednesday, November 15, 2023, at 10:00 a.m. Eastern Time. This event presents an exciting opportunity for investors and stakeholders to gain further insights into Freshpet’s strategic vision and future prospects.
