Freshpet Inc shares climbed by a fifth on Monday morning after the pet food maker topped analysts’ profit estimates in final-quarter results.
At US$0.31 a share, earnings soared past analysts’ anticipations that the figure would sit at US$0.07 for the three months to December.
This was up on a US$0.06 loss recorded a year earlier, with net income reaching US$15.3 million over the quarter, compared to a US$2.9 million loss last time.
Chief executive Billy Cyr said the results showed Freshpet had hit an inflection point.
“The significant investments we have made to create scale and extend our first mover advantage have begun to generate improved profitability and significant operating cash flow,” he said.
For the year, net sales climbed 29% to $766.9 million, with losses slimming from US$59.5 million to US$33.6 million.
On an adjusted basis, pre-tax earnings jumped from US$20.1 million to US$66.6 million.
Stronger results came as higher sales, partially on the back of increased prices, coupled with a fall in logistics costs.
“In 2024, we intend to continue making strong margin improvement and demonstrate continued capital discipline,” Cyr added.
Shares climbed 18.3% to reach US$108.83 in early trading.