Freshpet Expects 13-16% Sales Growth for 2025, Cuts CapEx by $100M, and Removes 2027 Targets

Freshpet expects 13-16% sales growth for 2025, while reducing capital expenditures by $100M and removing 2027 targets. CEO William B. Cyr attributes the growth to operational improvements and capital efficiencies. The company's growth outperforms the dog food category despite subdued demand.

Freshpet, Inc. (FRPT) has revised its 2025 sales growth outlook and reduced capital expenditures by $100 million over two years. The company's CEO, William B. Cyr, attributed the changes to operational improvements and capital efficiencies, despite a subdued demand in the dog food category.

During the latest earnings call, Cyr highlighted that Freshpet's growth continues to significantly outperform the category, driven by operational enhancements and capital efficiencies. He announced a revised net sales guidance for 2025, expecting 13% to 16% year-over-year growth, down from the previous guidance of 15% to 18%. Cyr also stated that the company's capital expenditures are now projected to be approximately $175 million this year, a reduction from the previous estimates of $225 million and $250 million.

The company has also removed its long-term net sales and household targets for 2027, citing slower category growth rates and new pet additions. According to CFO Todd E. Cunfer, the second quarter results demonstrated strong operational effectiveness and profitability improvement, but were slightly below expectations on sales.

Freshpet's digital orders were up 40% in the second quarter, now accounting for 13% of sales. Household penetration reached 14.4 million, up 11% year-over-year, and MVP households represented 70% of sales with an average buy rate of $501. The company remains focused on expanding digital sales and targeting high-value customers.

Freshpet's adjusted EBITDA guidance for 2025 remains at $190 million to $210 million. The company emphasized its ability to outperform the category and maintain profitability even amid persistent economic uncertainty and category headwinds.

References:
[1] https://seekingalpha.com/news/4477629-freshpet-signals-13-16-percent-sales-growth-for-2025-while-reducing-capex-by-100m-and