Freshpet, the pet-food producer, saw a significant increase in sales during the second quarter, leading to a 13% rise in its stock price. Despite higher prices, customers continued to purchase Freshpet's products, indicating a positive response to the price hike.
In afternoon trading, Freshpet's stock climbed 12.9% to $83.24 per share. Year-to-date, shares have gained an impressive 58%, outperforming the S&P 500, which has only seen a 17% increase.
Chief Executive Billy Cyr shared that over the past 18 months, Freshpet has implemented price increases amounting to 27%. Although there were initial challenges, customers have adapted to the higher prices, and the company is confident about its current position.
Freshpet reported second-quarter sales of $183.3 million, a growth of approximately 25.6% compared to the previous year. While this fell slightly short of analysts' expectations of $184.7 million, the company saw an 18% increase in sales volume and a 7% growth in both prices and product mix.
Additionally, Freshpet reduced its losses from $20.6 million to $17 million year-over-year, with a loss per share of 35 cents, beating analysts' predicted loss of 40 cents per share.
Overall, Freshpet's strong second-quarter performance reflects the resilience of the company and its ability to navigate market challenges. With positive sales growth and a narrowed loss, Freshpet is well-positioned for continued success.
