Strong E-commerce Growth
Freshpet's total e-commerce business was up 43% in the quarter, driven by higher-income consumers, particularly those who buy online and via subscription.
Operational Efficiency Improvements
Plants are running exceptionally well with Ennis making tremendous progress on gaining operating efficiencies, which is contributing to better margins and reduced logistics costs.
New Distribution Channels
Freshpet is now in its first Sam's Club store with encouraging early results. Expansion into more value-oriented stores is planned to reach more consumers.
Adjusted Gross Margin Improvement
Adjusted gross margin in the first quarter was 45.7% compared to 45.3% in the prior-year period, driven by lower input costs and reduced quality costs.
Record Household Penetration
Household penetration as of March 30th was 14.1 million households, up 13% year-over-year, demonstrating strong brand growth.