Reiterates full-year guidance and clarifies H2 Adjusted EBITDA cadence
SECAUCUS, NJ, Sept. 07, 2022 (GLOBE NEWSWIRE) — Freshpet, Inc. (“Freshpet” or the “Company”) (Nasdaq: FRPT) today announced several changes to its organizational structure intended to improve its capabilities and support its long-term growth objectives. More specifically, these changes aim to strengthen the Company’s capabilities in the areas of production, quality, engineering, logistics and finance. These leadership changes include:
CFO Heather Pomerantz has announced her intention to step down to pursue other opportunities effective September 7, 2022. While the company searches for her replacement, current Vice President (and former Freshpet CFO) Dick Kassar will occupy the position of interim Chief Financial Officer. Ms. Pomerantz’s resignation did not result from a disagreement with the Company regarding any matter relating to financial reporting, policies or practices of the Company.
Executive Vice President of Manufacturing Steve Weise, whose intention to retire was previously announced, will remain with the company in a consulting role through 2023 to support improvements to quality assurance systems company and other components of the company’s manufacturing and supply chain.
Jay Dahlgren, previously vice president of operations at JM Smucker Company, is now a consultant to the company and focuses on mitigating manufacturing and supply chain risk. Mr. Dahlgren has a long track record of operational success with Nestlé Purina and Big Heart prior to his time at JM Smucker.
Vice President of Manufacturing Ricardo Moreno will be named Senior Vice President of Manufacturing and Engineering. The company plans to fill the role of vice president of manufacturing as it expands this important area of its operations.
Senior Vice President of Engineering, Michael Hieger, will expand his responsibilities to include all capital expansion projects and engineering resources and will report to Mr. Moreno. Michael successfully led the creation and construction of Kitchens 1.0 and 2.0 in Bethlehem and the start-up of Kitchens South.
Board and Management Commentary
Charles Norris, Chairman of Freshpet’s Board of Directors, said, “We remain convinced that the growth opportunity for Freshpet is enormous and that it comes with necessary investments in organizational capabilities to realize our potential. Each of these changes is designed to focus more resources on the specific areas where we believe the company has the greatest opportunity to improve efficiency, increase reliability and performance consistency, and deliver the Freshpet experience and service that consumers and retail partners expect. ”
Billy Cyr, President and CEO of Freshpet, added, “The rapid growth of our business, coupled with a fluid operating environment, has created a unique set of opportunities and challenges over the past two years. We remain committed to our goals and are making targeted investments to reduce volatility and establish an even larger set of capabilities to ensure the profitable growth we believe is inherent in this business.
“Promoting Ricardo, as well as gaining additional technical expertise in our manufacturing and supply chain, are critical elements for the successful launch of our new Ennis, Texas facility and future growth. long-term forecast that it will support. Since Ricardo joined Freshpet nearly two years ago, he has demonstrated the leadership and technical skills necessary to bring tangible improvements to our rapidly expanding operations, resulting in steady progress in throughput and productivity. – both of which have supported our successful supply chain fill over the past several quarters.
“We are so grateful to Heather for her efforts to guide Freshpet through the pandemic. During his tenure, we have strengthened the company’s balance sheet by providing us with the capital needed to achieve our long-term goals, including funding a capacity expansion plan that we believe will form the basis from which we can stimulate future growth. We believe we are well positioned to seize the substantial opportunity before us and wish Heather the best of luck in her next venture.
Reiterates guidance for full year 2022 and provides update on H2 Adjusted EBITDA cadence
For the full year 2022, the Company reiterated its Adj. EBITDA guidance, which is detailed as follows:
Net sales of over $575 million, an increase of approximately 35% over 2021
Adjusted EBITDA of >$48 million, an increase of approximately 12% over 2021. Adjusted EBITDA in the second half of 2022 is expected to be heavily biased in the fourth quarter (approximately 75/25 split between the fourth and third quarters, respectively) due to the combination of an increase in revenues, supported by the impact of rising prices and steady growth in consumption, as well as lower marketing investments.
Capital expenditures of approximately $320 million
The Company does not provide guidance for the most directly comparable GAAP measure, net earnings, and similarly cannot provide a reconciliation between its expected Adjusted EBITDA and net earnings measures without unreasonable effort due to the unavailability of reliable estimates for certain components of net income and respective reconciliations, including the timing and amount of cost of goods sold and selling, general and administrative expenses. These items are not within the Company’s control and may vary significantly from period to period and could have a material impact on future results.
Freshpet’s mission is to improve the lives of dogs and cats through the power of real, fresh food. Freshpet foods are blends of locally grown fresh meats, vegetables and fruits made in our Freshpet kitchens. We carefully prepare our food using natural ingredients, cooking it in small batches at lower temperatures to preserve the natural quality of the ingredients. Freshpet foods and treats are kept refrigerated from the time they are made until they arrive in Freshpet refrigerators at your local market.
Our foods are available at select mass merchandisers, grocery stores (including online), health foods, clubs, and specialty pet retailers in the United States, Canada, and Europe. From the care we take in sourcing our ingredients and making our food, to the moment it arrives at your doorstep, our integrity, transparency and social responsibility is how we like to run our business. To learn more, visit www.freshpet.com.
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Certain statements in this release constitute “forward-looking” statements, including statements relating to our growth, long-term capacity planning, net sales forecasts and adjusted EBITDA forecasts. These statements are based on management’s current opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or results. These forward-looking statements, including our updated forecasts, are only predictions, not historical facts, and involve certain risks and uncertainties, as well as assumptions. Actual results, levels of activity, performance, achievements and events could differ materially from those stated, anticipated or implied by such forward-looking statements. Although Freshpet believes its assumptions to be reasonable, it is very difficult to predict the impact of known factors and, of course, it is impossible to anticipate all factors that could affect actual results. There are several risks and uncertainties that could cause actual results to differ materially from the forward-looking statements made herein, including, most importantly, the risks discussed under “Risk Factors” in the company’s most recent annual report. on Form 10-K and its quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this release. Freshpet undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to such or other forward-looking statements.