Freshpet Inc (FRPT)

Pretax margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Earnings before tax but after interest (EBT) US$ in thousands 47,523 -31,514 -55,481 -27,532 -3,123
Revenue US$ in thousands 975,177 766,895 595,344 425,489 318,790
Pretax margin 4.87% -4.11% -9.32% -6.47% -0.98%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $47,523K ÷ $975,177K
= 4.87%

The pretax margin of Freshpet Inc. exhibited significant fluctuations over the period analyzed. As of December 31, 2020, the company reported a pretax margin of -0.98%, indicating a marginal loss before taxes. This negative margin worsened notably by December 31, 2021, declining to -6.47%, which suggests an escalation in pre-tax losses relative to revenue. The downward trend persisted into December 31, 2022, with the pretax margin reaching -9.32%, reflecting increased operational challenges or higher expenses impacting profitability before taxes.

However, a notable improvement is observed in the most recent year, ending December 31, 2023, where the pretax margin rose to -4.11%. Although still negative, this marks a substantial reduction in pre-tax losses compared to the previous two years, indicating some progress towards improving profitability. The trend culminates in December 31, 2024, with the pretax margin turning positive at 4.87%, signifying that the company has achieved pre-tax profitability. This positive shift may be attributed to operational efficiencies, revenue growth, cost management, or a combination of these factors.

Overall, the data reflects a trajectory from initial marginal losses to eventual pre-tax profitability within the analyzed period, with the most recent figures suggesting a healthier financial position ahead of taxes.