Freshpet Inc (FRPT)
Operating 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 18,175 | 38,264 | 33,867 | 14,880 | -258 | -30,361 | -46,189 | -55,015 | -56,398 | -50,765 | -57,555 | -42,491 | -30,822 | -24,662 | -20,127 | -15,527 | -8,830 | -1,998 | 5,981 | 5,756 |
| 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 |
| Operating profit margin | 1.79% | 3.92% | 3.65% | 1.70% | -0.03% | -3.96% | -6.44% | -8.24% | -8.94% | -8.53% | -10.55% | -8.47% | -6.64% | -5.80% | -5.11% | -4.19% | -2.58% | -0.63% | 1.99% | 2.05% |
March 31, 2025 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $18,175K ÷ $1,014,577K
= 1.79%
The operating profit margin of Freshpet Inc has exhibited significant fluctuations over the observed period, transitioning from positive values in mid-2020 to persistent negative margins throughout much of 2021 and 2022, before demonstrating a gradual improvement in 2023 and into 2024.
From June 2020 to September 2020, the operating profit margin was relatively stable, at approximately 2.05% and 1.99%, respectively, indicating modest profitability on a limited basis. However, beginning in December 2020, the margin turned negative, reaching -0.63%, and continued to decline sharply into March 2021 with a margin of -2.58%. The downward trend persisted through 2021 and 2022, with the margin deepening to -8.47% by June 2022 and peaking at -10.55% in September 2022, reflecting a period of sustained operating losses and increasing operational challenges.
Despite ongoing negative margins during this period, a gradual recovery is apparent starting in late 2022 and into 2023. The margin improved from -8.53% at the end of 2022 to -8.94% in March 2023, and further to -8.24% by June 2023. This positive trend continued through the third quarter of 2023, where the operating profit margin narrowed to -6.44%, indicating a decrease in operating losses.
A notable shift is observed in late 2023 and 2024, with the margin turning positive: reaching -3.96% at end of December 2023, then moving into positive territory at -0.03% in March 2024, and further increasing to 1.70% in June 2024 and 3.65% in September 2024. This progression suggests an ongoing turnaround in operating performance. By December 2024, the margin slightly rose to 3.92%, and in the first quarter of 2025, it remained positive at 1.79%.
Overall, the operating profit margin trajectory indicates a period of operational losses over multiple years, with a recent and encouraging recovery phase that points toward improving profitability prospects for Freshpet Inc. The transition from negative to positive margins signifies potential stabilization and enhanced operational efficiency, contingent upon continued execution of growth and cost management strategies.
Peer comparison
Mar 31, 2025