In This Article:
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Net Sales: $588 million, a 19% increase over the prior year.
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Adjusted EBITDA: $119 million, a 14% increase.
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Adjusted EBITDA Margin: 20.2%.
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Premier Protein Net Sales Growth: 22% driven by RTD shakes and powders.
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Dymatize Net Sales Growth: 3% with 20% higher volume.
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Adjusted Gross Profit: $203 million, a 22% increase.
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Adjusted Gross Profit Margin: 34.5%, up 80 basis points.
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SG&A Expenses: $91 million, an increase of 140 basis points as a percentage of net sales.
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Advertising and Promotion Spend: 4.7% of net sales, up from 3.1% last year.
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Cash Flow from Operations: $48 million in Q2, $51 million in the first half.
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Net Debt: $932 million with net leverage at 1.9 times.
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Share Repurchases: 2.4 million shares at an average price of $71.68 per share, totaling $172 million.
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Fiscal '25 Guidance: Net sales of $2.26 billion to $2.34 billion; Adjusted EBITDA of $470 million to $500 million.
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Expected Adjusted EBITDA Margin: 21.1% at the midpoint of guidance.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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BellRing Brands Inc (NYSE:BRBR) reported a 19% increase in net sales, driven by strong demand for Premier Protein products.
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Premier Protein shakes saw a 25% increase in consumption, reaching new highs in household penetration and market share.
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The company affirmed its fiscal 2025 outlook, projecting net sales growth of 13% to 17% and EBITDA growth of 7% to 14%.
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Dymatize brand posted positive domestic consumption growth and improved its market share in the powders category.
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The company has a strong innovation pipeline, including new product lines like the indulgence line, which is attracting new consumers and expanding market reach.
Negative Points
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Retailer inventory reductions are expected to be a mid-single-digit headwind to third-quarter growth.
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Input cost inflation is anticipated to increase in the second half of fiscal 2025, pressuring margins.
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Higher advertising and promotion expenses increased SG&A costs, impacting overall profitability.
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Potential future tariffs on dairy protein sourced from New Zealand and the EU could impact input costs starting in fiscal 2026.
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The company is cautious about consumer uncertainty and has not tightened its guidance range despite strong performance.
Q & A Highlights
Q: What are the expectations for category growth in the second half of the fiscal year given the weakening consumer environment? A: Darcy Davenport, President & CEO, stated that the category fundamentals remain strong with macro tailwinds and a low household penetration of 50% in the RTD category. They are modeling different scenarios, but do not expect significant impact from the weakening consumer environment.