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freshpet Freshpet , Inc. Reports Second Quarter 2021 Financial Results August 2 , 2021 Raising 2021 Net Sales Guidance to > $ 445 million SECAUCUS , N.J. , Aug. 02 , 2021 ( GLOBE NEWSWIRE ) -- Freshpet , Inc. ( " Freshpet " or the " Company " ) ( Nasdaq : FRPT ) today reported financial results for its second quarter ended June 30 , 2021 . Second Quarter 2021 Financial Highlights Compared to Prior Year Period • Net sales of $ 108.6 million , an increase of 35.8 % • Net loss of $ 7.5 million , compared with prior year net income of $ 0.2 million • Adjusted EBITDA of $ 10.9 million , compared to $ 11.2 million 1 " The acceleration of Freshpet's second quarter growth rate continues to demonstrate the significant potential of the brand and the potency of our Feed the Growth strategy - enabling us to raise our projection for this year's net sales growth rate to 40 % , " commented Billy Cyr , Freshpet's Chief Executive Officer . " But we are not immune to the inflation being felt across the industry and are taking the necessary steps to address it - ensuring that our growth converts to the sustainable profitability we expect and enabling the capacity investments needed to change the way more people nourish their pets ... forever . " Second Quarter 2021 Net sales increased 35.8 % to $ 108.6 million for the second quarter of 2021 compared to $ 80.0 million for the second quarter of 2020. Net sales for the second quarter of 2021 were driven by velocity , distribution gains , and innovation . Gross profit was $ 43.1 million , or 39.7 % as a percentage of net sales , for the second quarter of 2021 , compared to $ 33.9 million , or 42.4 % as a percentage of net sales , in the prior year period . For the second quarter of 2021 , Adjusted Gross Profit was $ 50.1 million , or 46.1 % as a percentage of net sales , compared to $ 39.2 million , or 49.1 % as a percentage of net sales , in the prior year period . The decrease in gross profit as a percentage of net sales and Adjusted Gross Profit as a percentage of net sales was primarily due to inflation in beef costs , and increased processing costs as we expand our production capacity at Kitchens Bethlehem and Kitchens South . Adjusted Gross Profit is a non - GAAP financial measure defined under “ Non - GAAP Measures , ” and is reconciled to gross profit in the financial tables that accompany this release . Selling , general and administrative expenses ( " SG & A ” ) was $ 49.6 million for the second quarter of 2021 compared to $ 33.7 million in the prior year period . As a percentage of net sales , SG & A increased to 45.6 % for the second quarter of 2021 compared to 42.1 % in the prior year period . Adjusted SG & A for the second quarter of 2021 was $ 39.3 million , or 36.1 % as a percentage of net sales , compared to $ 28.1 million , or 35.1 % as a percentage of net sales , in the prior year period . The increase in SG & A as a percentage of net sales and Adjusted SG & A as a percentage of net sales was a result of increased logistics costs as a percentage of net sales , offset by general and administrative expense leverage due to higher net sales . Adjusted SG & A is a non - GAAP financial measure defined under " Non - GAAP Measures , " and is reconciled to SG & A in the financial tables that accompany this release . Net loss was $ 7.5 million for the second quarter of 2021 compared to net income of $ 0.2 million for the prior year period . The increase in net loss was due to increased SG & A , partially offset by higher net sales and increased gross profit . Adjusted EBITDA was $ 10.9 million , or 10.0 % as a percentage of net sales , for the second quarter of 2021 , compared to $ 11.2 million , or 14.0 % as a percentage of net sales , in the prior year period . The decrease in Adjusted EBITDA was a result of increased Adjusted SG & A expense , partially offset by higher net sales and Adjusted Gross Profit . Adjusted EBITDA is a non - GAAP financial measure defined under " Non - GAAP Measures , " and is reconciled to net loss in the financial tables that accompany this release . 1 Adjusted EBITDA , as well as certain other measures in this release , is a non - GAAP financial measure . See " Non - GAAP Measures " for how we define these measures and the financial tables that accompany this release for reconciliations of these measures to the closest comparable GAAP measures . First Six Months of 2021 Net sales increased 34.6 % to $ 202.0 million for the first six months of 2021 compared to $ 150.1 million in the prior year period . Net sales for the first six months of 2021 were driven by velocity , distribution gains , and innovation . Gross profit was $ 79.4 million , or 39.3 % as a percentage of net sales , for the first six months of 2021 , compared to $ 65.7 million , or 43.8 % as a percentage of net sales , in the prior year period . For the first six months of 2021 , Adjusted Gross Profit was $ 93.7 million , or 46.4 % as a percentage of net sales , compared to $ 73.9 million , or 49.3 % as a percentage of net sales , in the prior year period . The decrease in gross profit as a percentage of net sales and Adjusted Gross Profit as a percentage of net sales was primarily due to inflation in beef costs , and increased processing costs and write - offs as we expand our production capacity at Kitchens Bethlehem and Kitchens South . Adjusted Gross Profit is a non - GAAP financial measure defined under " Non - GAAP Measures , " and is reconciled to gross profit in the financial tables that accompany this release . SG & A expenses were $ 95.6 million for the first six months of 2021 compared to $ 68.4 million in the prior year period . As a percentage of net sales , SG & A increased to 47.3 % for the first six months of 2021 compared to 45.6 % in the prior year period . Adjusted SG & A for the first six months of 2021 was $ 75.1 million , or 37.2 % as a percentage of net sales , compared to $ 57.0 million , or 38.0 % as a percentage of net sales , in the prior year period .