Loading...
01/11 03:36
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary reflects a positive sentiment overall, with strong financial performance, product launches, and a robust shareholder return plan. Despite some uncertainties in Q&A about fiscal '26, management's confidence in long-term growth and strategic market positioning is evident. The share repurchase program and optimistic guidance for fiscal '25, coupled with a strategic focus on innovation and market expansion, are likely to drive a positive stock price reaction over the next two weeks.
Net Sales Net sales were $548 million, up 6% over prior year. The primary driver was a heavier-than-expected e-commerce promotion load-in for Premier Protein and Dymatize, which will deload in Q4.
Adjusted EBITDA Adjusted EBITDA was $120 million, with margins at 22%. Both net sales and adjusted EBITDA were slightly ahead of expectations due to the e-commerce promotion load-in.
Premier Protein Net Sales Premier Protein net sales grew 6%, with volume and pricing both up 3%. Distribution gains and promotions were the main drivers of volume growth.
Shake Consumption Dollar Growth Shake consumption dollar growth was 19%, significantly outpacing shipment dollar growth due to trade inventory changes and e-commerce load-in.
Dymatize Net Sales Dymatize net sales increased 5%, driven by strong growth in international and domestic RTD shake sales.
Adjusted Gross Profit Adjusted gross profit was $192 million, up 3% from prior year. Adjusted gross profit margin was 35.1%, a decrease of 130 basis points due to input cost inflation, incremental trade, packaging redesign costs, and lapping of nonrecurring cost favorability.
SG&A Expenses SG&A expenses were $145 million, including a $68 million provision for legal matters related to the Joint Juice brand. Excluding this provision, SG&A expenses were $76 million, a decrease of 40 basis points as a percentage of net sales due to leverage on G&A.
Cash Flow from Operations Generated $40 million in cash flow from operations in Q3 and $92 million year-to-date.
Net Debt and Leverage Net debt was $971 million, with net leverage at 2x. Anticipated net leverage to end the year below 2x.
Share Repurchases Repurchased 1.3 million shares at an average price of $65.07 per share, totaling $83 million. Year-to-date, acquired 3.8 million shares, approximately 3% of outstanding shares.
Ready-to-drink (RTD) shakes: The RTD shake category grew 16% this quarter, with 70% of the growth driven by volume. Premier Protein contributed approximately 25% of the category's growth and remains the #1 brand with a 25% market share.
New product launches: Two new shake lines were launched: an indulgence line targeting incremental consumption occasions and Almondmilkshakes, a non-dairy protein offering. Both products are performing well, with Almondmilkshakes showing promising early results.
Market penetration: RTD shakes reached 52% household penetration, adding 5 penetration points in the past year. Premier Protein achieved an all-time high household penetration of 21.6%.
Retailer collaboration: Retailers are expanding RTD shelf space and testing new aisle locations, with Premier Protein gaining 34% more TDPs. The brand is also the official category captain for several key retailers.
Brand support and marketing: Premier Protein launched a new media campaign in July featuring updated packaging, which has received positive feedback. In-store investments, including promotions and displays, are being aggressively pursued.
Distribution and manufacturing: The company is expanding distribution and leveraging a scalable co-manufacturing network to meet demand. Premier Protein currently holds 4% of shelf space but generates 11% of category sales.
Innovation pipeline: The company is focusing on both close-in innovations like flavor and format expansions and disruptive innovations targeting new consumers and occasions.
Long-term growth strategy: BellRing is positioning itself for sustained growth through increased brand support, distribution expansion, and innovation, aiming to capitalize on the RTD category's long runway for growth.
Increased Competition: The ready-to-drink (RTD) shake category is attracting new entrants, including large established CPG companies, which could lead to intensified competition and pressure on market share.
Input Cost Inflation: The company is facing moderate year-over-year pressure from input cost inflation, particularly in protein and packaging materials, which is expected to continue into fiscal 2026.
Tariff Impacts: Higher tariffs on dairy protein sourced from New Zealand and the EU are expected to result in a low single-digit impact on fiscal 2026 cost of goods sold.
Legal Liabilities: A $68 million provision for legal matters related to the discontinued Joint Juice brand, with payment expected in fiscal 2026, could impact cash flow and financial flexibility.
Promotional Spending: Increased promotional spending to drive growth may pressure gross margins, particularly in the fourth quarter of fiscal 2025.
E-commerce Timing Shifts: Heavier-than-expected e-commerce promotion load-in for Premier Protein and Dymatize in Q3 will deload in Q4, potentially impacting quarterly financial performance.
Supply Chain and Distribution Challenges: The company is aggressively pursuing distribution expansion, but limited shelf space (4% share of shelf despite 11% of category sales) and reliance on a co-manufacturing network could pose risks to execution.
Revenue Expectations: Net sales guidance for fiscal 2025 is tightened to a range of $2.28 billion to $2.32 billion, implying strong top-line growth of 14% to 16%.
Margin Projections: Adjusted EBITDA guidance for fiscal 2025 is $480 million to $490 million, reflecting growth of 9% to 11% with healthy adjusted EBITDA margins of 21% at the midpoint. Fourth quarter adjusted EBITDA margins are expected to be approximately 19%.
Market Trends: The ready-to-drink (RTD) shake category is experiencing significant growth, with household penetration at 52%, leaving substantial room for expansion compared to mature categories with 80%-90% penetration. Retailers are increasing shelf space and promotional activities for RTDs.
Business Segment Performance: Premier Protein is the #1 brand in the RTD segment with a 25% market share. Consumption dollar growth for Premier RTD shakes is expected to remain strong in the high teens to low 20% range for the fourth quarter.
Capital Expenditures and Operational Changes: The company is investing in distribution expansion, in-store promotions, and innovation, including new product lines such as Almondmilkshakes and indulgence shakes. A scalable, regionally diverse co-manufacturing network has been developed to support growth.
Strategic Plans and Innovation: The company is accelerating efforts around innovation with a rich pipeline, including flavor leadership, pack size and format expansion, and disruptive innovations targeting incremental consumers and occasions. New packaging and media campaigns are aimed at younger consumers.
Cost and Tariff Implications: Higher protein costs and tariffs on dairy protein sourced from New Zealand and the EU are expected to impact fiscal 2026 costs, with no tariff impact on fiscal 2025 results. Input cost inflation and promotional spend are expected to pressure fourth-quarter gross margins.
Share Repurchase Program: During the third quarter, BellRing Brands repurchased 1.3 million shares at an average price of $65.07 per share, totaling $83 million. Year-to-date, the company has acquired 3.8 million shares, representing approximately 3% of its outstanding shares. As of June 30, the remaining share repurchase authorization was $197 million.
The earnings call summary indicates strong revenue expectations and healthy margins despite some anticipated cost pressures. The company is the market leader in a growing category with strategic investments in innovation and distribution. Although there are concerns about tariffs and inflation, the overall sentiment is positive with strong market positioning and growth potential.
The earnings call summary reflects a positive sentiment overall, with strong financial performance, product launches, and a robust shareholder return plan. Despite some uncertainties in Q&A about fiscal '26, management's confidence in long-term growth and strategic market positioning is evident. The share repurchase program and optimistic guidance for fiscal '25, coupled with a strategic focus on innovation and market expansion, are likely to drive a positive stock price reaction over the next two weeks.
The earnings call presents a mixed outlook. Strong financial performance with 19% net sales growth and robust EBITDA is offset by competitive pressures, potential tariff impacts, and increased input costs. While the share repurchase program is positive, concerns about weakening consumer sentiment and supply chain challenges persist. The cautious guidance and lack of clarity on tariffs further contribute to a neutral sentiment. The Q&A indicates management's acknowledgment of uncertainties, but without a significant change in guidance or strategy, the market reaction is likely to remain stable.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
