Freshpet Inc (FRPT)
Operating profit margin
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Operating income | US$ in thousands | 37,999 | -30,446 | -51,983 | -24,650 | -1,911 |
Revenue | US$ in thousands | 975,177 | 766,895 | 595,344 | 425,489 | 318,790 |
Operating profit margin | 3.90% | -3.97% | -8.73% | -5.79% | -0.60% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $37,999K ÷ $975,177K
= 3.90%
The operating profit margin of Freshpet Inc. has exhibited notable fluctuations over the specified period from December 31, 2020, to December 31, 2024. Initially, the company reported a marginally negative operating profit margin of -0.60% in 2020, indicating a near-breakeven operating performance. The margin declined significantly in 2021 to -5.79%, reflecting increased operating expenses or decreased revenues relative to operating income, thereby exacerbating operating losses. This negative trend continued into 2022, with the margin worsening further to -8.73%, suggesting ongoing operational challenges or increased costs impacting profitability.
In 2023, the operating profit margin improved somewhat to -3.97%, signaling a reduction in operating losses, which could be attributed to cost management efforts or revenue enhancements. Most notably, in 2024, Freshpet Inc. achieved a positive operating profit margin of 3.90%, indicating a transition into profitability on its core operating activities. This shift represents a significant turnaround and suggests that the company has successfully addressed previous operational inefficiencies, improved cost control, or realized strong revenue growth, resulting in operational earnings.
Overall, the trend from negative margins toward positive territory underscores a strategic and operational progression, culminating in a profitable operating margin in 2024. This improvement highlights the company's movement toward sustainable operational profitability after a period of consistent losses.
Peer comparison
Dec 31, 2024