The decrease in gross profit was primarily due to inflation of ingredient cost and labor, and quality issues, partially offset by increased pricing.

Freshpet Performance in first six months of 2022

Net sales increased 37.7% to US$278.2 million for the first six months of 2022 compared to US$202.0 million for the first six months of 2021. Net sales for the first six months of 2022 were driven by velocity, pricing, distribution gains and innovation.

Gross profit was US$97.0 million, or 34.9% as a percentage of net sales, for the first six months of 2022, compared to US$79.4 million, or 39.3% as a percentage of net sales, in the prior year period. For the first six months of 2022, Adjusted Gross Profit was US$117.2 million, or 42.1% as a percentage of net sales, compared to US$93.7 million, or 46.4% as a percentage of net sales, in the prior year period. The decrease in gross profit as a percentage of net sales and Adjusted Gross Profit as a percentage of net sales was primarily due to inflation of ingredient cost and labor, and quality issues, partially offset by increased pricing.

Net loss was US$38.1 million for the first six months of 2022 compared to net loss of US$18.4 million for the prior year period. The increase in net loss was due to increased SG&A, partially offset by higher net sales and increased gross profit.

Freshpet revenue up in 2021, but S&P beats stock

Continuing five consecutive years of accelerating growth, refrigerated pet food company Freshpet’s revenue grew 33.5% in 2021, according to analysts with Investment bank Cascadia Capital. Despite this growth, Freshpet’s stock performed below the S&P500 between April 2021 and 2022. Freshpet is a U.S.-based manufacturer of fresh, refrigerated dog treats and food for dogs and cats. Brands include Freshpet Select, Fresh Treats, Nature’s Fresh, Vital, Dog Joy, Deli Fresh, Homestyle Creations and Dog Nation.

A 6% increase in household penetration drove much of Freshpet’s growth in 2021, as the company expanded to reach 4.2 million households in 2021, according to Cascadia’s analysts. Likewise, an 18% increase in buying rate helped the company. Out-of-stock problems dragged on this growth though. Online sales now represent 7.4% of total company revenue. Nevertheless, Freshpet’s gross margin declined due to wage increases at plants, network capacity investments and ingredient cost inflation.

（from www.petfoodindustry.com）