Latest news with #DarcyDavenport
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
07-05-2025
- Business
- Yahoo
BellRing Brands looks to inflation-related margin pressure but 'minor' tariff impact
BellRing Brands expects margins to be pressured by inflation in the back half of the year, along with a sales 'headwind' from retailer inventory reductions. However, the US-based protein business left sales and EBITDA guidance unchanged for the full year as president and CEO Darcy Davenport presented second-quarter results. Her finance counterpart Paul Rode pointed to a 'minor' impact from tariffs, with that impact likely to be felt in fiscal 2026 rather than the current year, mainly linked to dairy protein ingredients sourced from Europe and New Zealand. 'Our pricing actions have offset input-cost inflation to date. However, the rate of inflation will increase in the second half of 2025, pressuring margins when compared to the prior year,' Rode explained on a follow-up call with analysts. While the sales outlook for the second half remains unchanged, sales will be supported by promotions in the final quarter of 2024 but offset by 'third-quarter reductions in retailer trade inventory levels', he said. Rode added: 'Starting late in Q2 and continuing into the third quarter, several key retailers lowered their weeks of supply on hand, which is expected to be a mid-single-digit headwind to our third-quarter growth. This change is in addition to the previously anticipated mid-single-digit impact to the third quarter from lapping last year's trade inventory replenishments. 'We now expect Q3 net sales growth of low-single-digits with Premier Protein the main driver and all others flat to down. Without the impact of these trade inventory changes, our underlying third-quarter growth for Premier Protein RTD shakes would be more in line with our expected consumption growth of mid-to-high teens.' Sales in the quarter to 31 March rose 18.9% to $588m based on 15.3% volume growth and an increase in price/mix of 3.6%. Adjusted EBITDA climbed 14.4% to $118.6m, with the margin dipping to 20.2% from 21%. Sales over 2025 were reaffirmed at $2.26-2.34bn (13-17% growth) and adjusted EBITDA of $470-500m (7-14%). Rode said the adjusted EBITDA margin will remain 'healthy' at 21.1% at the 'midpoint' but in the fourth quarter will be 'sequentially lower as higher input-costs and promotional spend weigh on margins'. BellRing on tariffs In terms of tariffs, the CFO said a 'portion' of the company's input costs could be hit by the levies related to the dairy ingredients from Europe and New Zealand. But BellRing Brands expects no impact in 2025 and a 'partial' impact the following year due to the sourcing lag on the P&L account. Nevertheless, Rode said the company is 'actively evaluating ways to mitigate tariff impacts'.
