Freshpet Inc (FRPT)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	395,956	250,872	186,033	162,146	132,910
Revenue	US$ in thousands	975,177	766,895	595,344	425,489	318,790
Gross profit margin		40.60%	32.71%	31.25%	38.11%	41.69%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $395,956K ÷ $975,177K
= 40.60%

The gross profit margin of Freshpet Inc has exhibited notable fluctuations over the specified periods. As of December 31, 2020, the gross profit margin was 41.69%, reflecting the company's ability to generate a substantial proportion of gross profit relative to net sales. By December 31, 2021, this margin declined to 38.11%, indicating a slight compression possibly attributable to increased cost of goods sold or competitive pressures impacting pricing strategies. The downward trend continued into December 31, 2022, with the gross profit margin decreasing significantly to 31.25%, which may suggest further challenges in cost management or shifts in sales mix. However, this margin experienced a modest recovery by December 31, 2023, reaching 32.71%, signaling potential improvements in operational efficiency or pricing power. Most notably, by December 31, 2024, the gross profit margin increased substantially to 40.60%, surpassing all previous years and pointing towards a strengthening of gross profitability. Overall, the trend indicates a period of decline followed by a renewed and significant improvement in gross profit margins, reflecting possible strategic adjustments, cost control measures, or favorable changes in sales dynamics.