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Investing.com -- Freshpet (NASDAQ:FRPT) saw its shares slide around 3% lower in premarket trading Monday after the company reported first-quarter results and lowered full-year guidance, falling short of analyst expectations.
The American pet food company posted a first-quarter loss per share of $0.26, far worse than the $0.15 profit that analysts expected. Revenue for the period came in at $263.2 million, also below the $265.01 million consensus forecast.
Adjusted EBITDA rose 16% year-over-year to $35.5 million, topping the $33.6 million estimate. The company also reported an adjusted gross margin of 45.7%, up from 45.3% a year ago and ahead of the expected 44.9%.
Freshpet reported an operating loss of $11.5 million, compared to a profit of $8.46 million in the same period last year. Analysts had projected an operating profit of about $8 million.
“Despite the recent macro-economic headwinds, we believe Freshpet remains a structurally advantaged business with a long runway for growth in a category with long-term tailwinds. However, our growth year-to-date has not been as robust as we had anticipated so we are adapting our growth plans to the current economic challenges that our consumers are facing while continuing to drive the operational improvements that are essential to our long-term success,” said Billy Cyr, CEO of Freshpet.
Freshpet lowered its full-year 2025 outlook, now projecting net sales between $1.12 billion and $1.15 billion, reflecting 15% to 18% growth from 2024. The company previously expected $1.18 billion to $1.21 billion, or 21% to 24% growth.
Adjusted EBITDA is now forecast between $190 million and $210 million, down from a prior target of at least $210 million. Capital expenditures are expected to total approximately $225 million, reduced from the earlier estimate of around $250 million.
“Looking ahead, we believe it is prudent to adjust our 2025 outlook and plan as if the conditions we saw in the first quarter were to continue for the balance of the year," Cyr said.