Latest news with #BellringBrands
Yahoo
08-05-2025
- Business
- Yahoo
BRBR Q1 Earnings Call: Category Growth, Inventory Shifts, and Promotional Strategy Shape Outlook
Nutrition products company Bellring Brands (NYSE:BRBR) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 18.9% year on year to $588 million. On the other hand, the company's full-year revenue guidance of $2.3 billion at the midpoint came in 0.7% below analysts' estimates. Its non-GAAP profit of $0.53 per share was in line with analysts' consensus estimates. Is now the time to buy BRBR? Find out in our full research report (it's free). BellRing Brands (BRBR) Q1 CY2025 Highlights: Revenue: $588 million vs analyst estimates of $579 million (18.9% year-on-year growth, 1.6% beat) Adjusted EPS: $0.53 vs analyst estimates of $0.53 (in line) Adjusted EBITDA: $118.6 million vs analyst estimates of $118.3 million (20.2% margin, in line) The company reconfirmed its revenue guidance for the full year of $2.3 billion at the midpoint EBITDA guidance for the full year is $485 million at the midpoint, below analyst estimates of $491.5 million Operating Margin: 16.2%, down from 18.4% in the same quarter last year Free Cash Flow Margin: 8.1%, up from 3.2% in the same quarter last year Organic Revenue rose 21.2% year on year (28.3% in the same quarter last year) Sales Volumes rose 17.8% year on year (42.7% in the same quarter last year) Market Capitalization: $8.07 billion StockStory's Take BellRing Brands delivered sales growth above market expectations in Q1, with management crediting demand for ready-to-drink (RTD) protein shakes and successful marketing investments as key drivers. CEO Darcy Davenport highlighted that Premier Protein shakes achieved all-time highs in household penetration and market share, supported by expanded distribution, new product lines like the indulgence RTD, and improved retailer in-stocks. The company also saw robust growth from its powder products, with Premier Protein powder gaining full distribution at a major club retailer. Looking ahead, BellRing Brands reaffirmed its full-year sales and profit outlook but acknowledged a more cautious stance due to consumer uncertainty and inventory adjustments by key retail partners. Management noted that promotional plans and new product launches are designed to sustain momentum, but also flagged potential input cost inflation and evolving tariff risks as factors influencing their guidance. As CFO Paul Rode explained, 'We are being a little more cautious... the consumer is a bit more unstable than we've seen in the past.' Key Insights from Management's Remarks BellRing Brands' management attributed Q1 performance to strong category trends in convenient nutrition and targeted promotional efforts, while highlighting both short-term inventory dynamics and strategic investment in brand growth.
Yahoo
05-05-2025
- Business
- Yahoo
BellRing Brands (NYSE:BRBR) Surprises With Q1 Sales But Stock Drops
Nutrition products company Bellring Brands (NYSE:BRBR) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 18.9% year on year to $588 million. On the other hand, the company's full-year revenue guidance of $2.3 billion at the midpoint came in 0.7% below analysts' estimates. Its non-GAAP profit of $0.53 per share was in line with analysts' consensus estimates. Is now the time to buy BellRing Brands? Find out in our full research report. Revenue: $588 million vs analyst estimates of $579 million (18.9% year-on-year growth, 1.6% beat) Adjusted EPS: $0.53 vs analyst estimates of $0.53 (in line) Adjusted EBITDA: $118.6 million vs analyst estimates of $118.3 million (20.2% margin, in line) The company reconfirmed its revenue guidance for the full year of $2.3 billion at the midpoint EBITDA guidance for the full year is $485 million at the midpoint, below analyst estimates of $491.5 million Operating Margin: 16.2%, down from 18.4% in the same quarter last year Organic Revenue rose 21.2% year on year (28.3% in the same quarter last year) Sales Volumes rose 17.8% year on year (42.7% in the same quarter last year) Market Capitalization: $10.12 billion Spun out of Post Holdings in 2019, Bellring Brands (NYSE:BRBR) offers protein shakes, nutrition bars, and other products under the PowerBar, Premier Protein, and Dymatize brands. A company's long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. With $2.19 billion in revenue over the past 12 months, BellRing Brands is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers. On the bright side, it can grow faster because it has a longer list of untapped store chains to sell into. As you can see below, BellRing Brands's 18.9% annualized revenue growth over the last three years was impressive as consumers bought more of its products. This quarter, BellRing Brands reported year-on-year revenue growth of 18.9%, and its $588 million of revenue exceeded Wall Street's estimates by 1.6%. Looking ahead, sell-side analysts expect revenue to grow 11.1% over the next 12 months, a deceleration versus the last three years. Despite the slowdown, this projection is commendable and implies the market is baking in success for its products. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Revenue growth can be broken down into changes in price and volume (the number of units sold). While both are important, volume is the lifeblood of a successful staples business as there's a ceiling to what consumers will pay for everyday goods; they can always trade down to non-branded products if the branded versions are too expensive. To analyze whether BellRing Brands generated its growth from changes in price or volume, we can compare its volume growth to its organic revenue growth, which excludes non-fundamental impacts on company financials like mergers and currency fluctuations. Over the last two years, BellRing Brands's average quarterly volume growth of 20.8% has outpaced the competition by a long shot. In the context of its 21.3% average organic revenue growth, we can see that most of the company's gains have come from more customers purchasing its products. In BellRing Brands's Q1 2025, sales volumes jumped 17.8% year on year. This result shows the business is staying on track, but the deceleration suggests growth is getting harder to come by. We were impressed by how significantly BellRing Brands blew past analysts' organic revenue expectations this quarter. We were also happy its revenue outperformed Wall Street's estimates. On the other hand, its full-year revenue guidance fell slightly short of Wall Street's estimates. Zooming out, we think this was a decent quarter featuring some areas of strength but also some blemishes. The areas below expectations seem to be driving the move, and the stock traded down 9% to $71.45 immediately following the results. So should you invest in BellRing Brands right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Yahoo
01-03-2025
- Business
- Yahoo
Is Bellring Brands, Inc. (BRBR) the High Growth Food Stock to Buy?
We recently published a list of . In this article, we are going to take a look at where Bellring Brands, Inc. (NYSE:BRBR) stands against other high growth food stocks to buy. The global food industry has always stimulated economic growth, innovation, and a shift in consumer trends. It is projected to reach $2.2 trillion by 2032 from its market size of $1.64 trillion in 2022, at a compound annual growth rate (CAGR) of 2.99%, according to Market Research Future. Despite food being a necessity, the business dynamics within the food industry are very complex and companies must be adaptable as they navigate the complexities of rising production costs, changing consumer preferences, and global supply chain disruptions. Within the industry, inflation remains a key topic. While it was soaring in 2022, food prices have since declined. However, they are on the rise again, causing financial strain on both consumers and businesses. As reported by the U.S. Department of Agriculture (USDA) in December 2024, grocery prices went up by 1.8% compared to the previous year, and food-away-from-home costs increased to 3.6%. Especially staple food items, including eggs and beef, had a sharp rise due to the avian flu wave and the supply limitations. These price fluctuations create a challenge for food companies, which must adjust their pricing strategies without sacrificing demand or alienating customers. On the other hand, consumer behavior is also changing, putting forth factors like health, sustainability, and convenience. Thus, specialty stores have seen an increase in the demand for fresh and raw food. At the same time, budget-conscious shoppers are gravitating toward discount retailers, highlighting the growing importance of affordability. Thus, food companies must meet diverse consumer needs driven by the dual trend of seeking premium and value-oriented products. Furthermore, technological breakthroughs are also contributing to the industry's transformation. Supply chain optimization, waste reduction, and increased production efficiency are being greatly aided by automation and artificial intelligence (AI). Moreover, robotics is deployed in food processing to increase production and efficiency, while AI-driven demand forecasting helps avoid inventory problems. Consumers' growing need for convenience is being met by the usage of digital ordering and delivery platforms, which opens new avenues for revenue growth. By adopting these technologies, companies are keen to improve operations and take advantage of growth opportunities in a market that is constantly evolving. Even with economic instability, the future of the food industry is promising, driven by global population growth, urbanization, and the expanding middle class in emerging markets. In addition, new investment opportunities are being created by the popularity of plant-based meals and alternative proteins. Thus, big industry players are prioritizing the integration of technology, sustainability, and innovation in their business model to capitalize on future growth potential. Many stocks stand out for their capacity to capitalize on this growth potential. To curate our list of the 10 High Growth Food Stocks to Buy, we used Finviz stock screener to gather stocks within the food sector with a strong market capitalization. We then narrowed the list based on each company's five-year compound annual growth rate (CAGR) to identify those demonstrating consistent revenue expansion. Furthermore, we also considered the number of hedge funds holding stakes in each stock, using data from Insider Monkey's hedge fund database, which tracks the activity of 1,009 hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A wide shot of an aisle in a food store lined with different nutrition products. Bellring Brands, Inc. (NYSE:BRBR) is making significant progress in the nutrition industry, especially with its flagship brands, Premier Protein and Dymatize. As protein-based diets become more popular, BellRing has successfully positioned itself to capture a larger share of the market. With strong consumer demand and an effective expansion strategy, the company is recognized as one of the high growth food stocks to buy. Bellring Brands, Inc. (NYSE:BRBR) is off to a strong start in fiscal year 2025. Premier Protein contributed significantly to the 25% increase in net sales and adjusted EBITDA. The brand saw a 23% increase in shake consumption, cementing its position as a leader in the ready-to-drink (RTD) protein market with a 26% market share. Furthermore, the introduction of a new indulgent line of shakes and powders has contributed to increased market penetration, enhancing Premier Protein's appeal. Furthermore, Bellring Brands, Inc. (NYSE:BRBR) has also benefited from the broader expansion of the Convenient Nutrition segment, which has grown to $19 billion, with RTD protein beverages leading the way with an 18% growth rate. The company's efforts to expand distribution channels and launch targeted marketing campaigns have resulted in sustained demand for its products, putting it in a good position to capitalize on this shift in consumer preference. However, investors should be aware of recent insider trading. Director Robert V. Vitale sold more than $6.1 million in shares, primarily to meet tax obligations. While insider sales are not uncommon, they should always be monitored in conjunction with broader market sentiments. Regardless, investor confidence remains high. According to Insider Monkey's database, 42 hedge funds have invested in Bellring Brands, Inc. (NYSE:BRBR), and the company's stock has increased 37.2% in the last six months. This growth reflects a strong belief in the company's future prospects. Thus, the company remains a compelling player in the nutrition space, with expanding product offerings, increasing consumer adoption, and a dominant presence in the fast-growing protein segment. Overall, BRBR ranks 3rd on our list of high growth food stocks to buy. While we acknowledge the potential of BRBR as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BRBR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
