Freshpet Inc (FRPT)

Gross profit margin

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020
Gross profit (ttm)	US$ in thousands	406,703	389,565	347,995	312,041	282,216	246,326	222,006	200,258	193,248	187,240	182,746	179,726	170,583	162,146	151,464	146,593	137,435	132,910	132,627	126,679
Revenue (ttm)	US$ in thousands	1,014,577	975,177	927,889	875,143	823,221	766,894	717,307	668,019	630,695	595,344	545,380	501,637	464,246	425,489	394,142	370,742	342,106	318,790	300,020	281,096
Gross profit margin		40.09%	39.95%	37.50%	35.66%	34.28%	32.12%	30.95%	29.98%	30.64%	31.45%	33.51%	35.83%	36.74%	38.11%	38.43%	39.54%	40.17%	41.69%	44.21%	45.07%

March 31, 2025 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $406,703K ÷ $1,014,577K
= 40.09%

The gross profit margin of Freshpet Inc. exhibits a downward trend from mid-2020 through early 2023, declining from approximately 45.07% as of June 30, 2020, to a low of around 29.98% as of June 30, 2023. During this period, the margin experienced a gradual and continuous decrease, indicating increased cost of goods sold relative to revenue or pricing pressures affecting the company's profitability on each dollar of sales. Notably, from late 2023 onward, the gross profit margin demonstrates an upward recovery, increasing steadily to 32.12% by December 31, 2023, and further rising to approximately 40.09% as of March 31, 2025. This reversal suggests improvements in cost management, pricing strategies, product mix, or operational efficiencies. Overall, the data reflects a significant period of margin compression followed by a subsequent recovery, signaling potential shifts in the company's profitability dynamics over this timeframe.