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Yahoo
3 days ago
- Business
- Yahoo
1 Consumer Stock to Own for Decades and 2 to Keep Off Your Radar
Consumer staples stocks are solid insurance policies in frothy markets ripe for corrections. Surprisingly, the sector hasn't played its shielding role over the past six months as it tumbled 14.1%. This drop was much worse than the S&P 500's 1.8% decline. The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. On that note, here is one consumer stock boasting a durable advantage and two that may face trouble. Market Cap: $16.88 billion Best known for its SPAM brand, Hormel (NYSE:HRL) is a packaged foods company with products that span meat, poultry, shelf-stable foods, and spreads. Why Do We Think Twice About HRL? Shrinking unit sales over the past two years show it's struggled to move its products and had to rely on price increases Easily substituted products (and therefore stiff competition) result in an inferior gross margin of 16.7% that must be offset through higher volumes Sales were less profitable over the last three years as its earnings per share fell by 6.5% annually, worse than its revenue declines Hormel Foods's stock price of $30.70 implies a valuation ratio of 17.7x forward P/E. Check out our free in-depth research report to learn more about why HRL doesn't pass our bar. Market Cap: $1.59 billion Translating to "of the mountain" in Spanish, Fresh Del Monte (NYSE:FDP) is a leader in providing high-quality, sustainably grown fresh fruits and vegetables. Why Do We Steer Clear of FDP? Sales were flat over the last three years, indicating it's failed to expand its business Gross margin of 8.2% is an output of its commoditized products Low returns on capital reflect management's struggle to allocate funds effectively Fresh Del Monte Produce is trading at $33.13 per share, or 8.2x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than FDP. Market Cap: $7.89 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. Why Are We Bullish on BRBR? Stellar 20.8% growth in unit sales over the past two years demonstrates the high demand for its products Earnings growth has trumped its peers over the last three years as its EPS has compounded at 28% annually ROIC punches in at 48.9%, illustrating management's expertise in identifying profitable investments At $62.15 per share, BellRing Brands trades at 26.1x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.
Yahoo
22-05-2025
- Business
- Yahoo
3 Reasons Investors Love BellRing Brands (BRBR)
Shareholders of BellRing Brands would probably like to forget the past six months even happened. The stock dropped 20.9% and now trades at $62.14. This might have investors contemplating their next move. Following the drawdown, is this a buying opportunity for BRBR? Find out in our full research report, it's free. 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. 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. BellRing Brands's average quarterly volume growth of 20.8% over the last two years has beaten the competition by a long shot. This is great because companies with significant volume growth are needles in a haystack in the stable consumer staples sector. Analyzing the change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions. BellRing Brands's EPS grew at an astounding 28% compounded annual growth rate over the last three years, higher than its 18.9% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. Growth gives us insight into a company's long-term potential, but how capital-efficient was that growth? A company's ROIC explains this by showing how much operating profit it makes compared to the money it has raised (debt and equity). BellRing Brands's five-year average ROIC was 48.9%, placing it among the best consumer staples companies. This illustrates its management team's ability to invest in highly profitable ventures and produce tangible results for shareholders. These are just a few reasons why we think BellRing Brands is a high-quality business. After the recent drawdown, the stock trades at 26.1× forward P/E (or $62.14 per share). Is now a good time to initiate a position? See for yourself in our comprehensive research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-05-2025
- Business
- Yahoo
3 Growth Stocks to Stash
Growth boosts valuation multiples, but it doesn't always last forever. Companies that cannot maintain it are often penalized with large declines in market value, a lesson ingrained in investors who lost money in tech stocks during 2022. Luckily for you, our job at StockStory is to help you avoid short-term fads by pointing you toward high-quality businesses that can generate sustainable long-term growth. Keeping that in mind, here are three growth stocks with significant upside potential. One-Year Revenue Growth: +18.6% Used to manage the multi-year expansion of the Panama Canal that began in 2007, Procore (NYSE:PCOR) offers a software-as-service project, finance, and quality management platform for the construction industry. Why Do We Like PCOR? Ability to secure long-term commitments with customers is evident in its 18.8% ARR growth over the last year Prominent and differentiated software results in a top-tier gross margin of 81.2% Free cash flow margin is anticipated to expand by 5.8 percentage points over the next year, providing additional flexibility for investments and share buybacks/dividends Procore is trading at $64.47 per share, or 7.3x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it's free. One-Year Revenue Growth: +31% The passion project of two chicken wing aficionados in Texas, Wingstop (NASDAQ:WING) is a popular fast-food chain known for its flavorful and crispy chicken wings offered in a variety of sauces and seasonings. Why Are We Bullish on WING? Average same-store sales growth of 16.9% over the past two years indicates its restaurants are resonating with diners Excellent operating margin of 25.3% highlights the efficiency of its business model Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends At $271.66 per share, Wingstop trades at 68x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it's free. One-Year Revenue Growth: +18.9% 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. Why Will BRBR Beat the Market? Products are flying off the shelves as its unit sales averaged 20.8% growth over the past two years Earnings per share grew by 28% annually over the last three years, massively outpacing its peers Industry-leading 48.9% return on capital demonstrates management's skill in finding high-return investments BellRing Brands's stock price of $63.78 implies a valuation ratio of 26.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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
Hamilton Spectator
05-05-2025
- Business
- Hamilton Spectator
BellRing Brands Reports Results for the Second Quarter 2025; Affirms Fiscal Year 2025 Outlook
ST. LOUIS, May 05, 2025 (GLOBE NEWSWIRE) — BellRing Brands, Inc. (NYSE:BRBR) ('BellRing'), a holding company operating in the global convenient nutrition category, today reported results for the second fiscal quarter ended March 31, 2025. Highlights: *Adjusted EBITDA is a non-GAAP measure. For additional information regarding non-GAAP measures, see the related explanations presented under 'Use of Non-GAAP Measures' later in this release. BellRing provides Adjusted EBITDA guidance only on a non-GAAP basis and does not provide a reconciliation of its forward-looking Adjusted EBITDA non-GAAP guidance measure to the most directly comparable GAAP measure due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, including the adjustments described under 'Outlook' later in this release. 'Our momentum continued this quarter as Premier Protein consumption accelerated. Increased promotions, our media campaign and new products drove Premier Protein household penetration and market share to new all-time highs. Our powder products benefited from distribution gains and brand building investments,' said Darcy H. Davenport, President and Chief Executive Officer of BellRing. 'The convenient nutrition category and our leading mainstream brands continue to resonate with consumers, demonstrating a long runway of growth for ready-to-drink shakes and powders. I am pleased to affirm our guidance of net sales growth of 13% to 17% with strong Adjusted EBITDA margins even amidst the current uncertain macroeconomic environment.' Dollar consumption of Premier Protein ready-to-drink ('RTD') shakes, Premier Protein powder products and Dymatize powder and RTD products increased 24.9%, 21.7% and 3.0% respectively, in the 13-week period ended March 30, 2025, as compared to the same period in 2024 (inclusive of Circana United States ('U.S.') Multi Outlet Plus with Convenience and management estimates of untracked channels). For additional information regarding consumption metrics, see the supplemental slide presentation on BellRing's website, which can be accessed by visiting the Investor Relations section. Second Quarter Results Net sales were $588.0 million, an increase of 18.9%, or $93.4 million, compared to the prior year period, driven by 15.3% increase in volume and 3.6% increase in price/mix. Premier Protein net sales increased 22.0%, driven by 15.3% volume growth and 6.7% increase in price/mix. Premier Protein RTD shake net sales increased 21.7%, driven by 15.2% increase in volume and 6.5% increase in price/mix. Volume gains were driven by distribution gains and increased promotional activity. Additionally, net sales benefited from higher average net selling prices driven by price increases to offset cost inflation. Dymatize net sales increased 3.0%, driven by 20.4% increase in volume which was partially offset by a 17.3% decrease in price/mix. Volume growth was lifted by higher international volumes and new product introductions, the latter of which negatively impacted price/mix. Gross profit was $189.8 million, or 32.3% of net sales, an increase of 15.5%, or $25.5 million, compared to $164.3 million, or 33.2% of net sales, in the prior year period. Adjusted gross profit* was $202.7 million, or 34.5% of net sales, an increase of $35.9 million, or 21.5%, compared to $166.8 million, or 33.7% of net sales, in the prior year period. In the second quarter of 2025, gross profit and adjusted gross profit benefited from improved pricing which was partly offset by net input cost inflation and increased promotional activity. *Adjusted gross profit and adjusted gross profit margin are non-GAAP measures that exclude mark-to-market adjustments on commodity hedges. For additional information regarding non-GAAP measures, see the related explanations presented under 'Use of Non-GAAP Measures' later in this release. Selling, general and administrative ('SG&A') expenses were $90.5 million, or 15.4% of net sales, an increase of $21.4 million compared to $69.1 million, or 14.0% of net sales, in the prior year period. SG&A expenses in the second quarter of 2025 included higher marketing and consumer advertising expenses of $12.5 million and increased distribution and warehousing expenses on higher volumes. Operating profit was $95.1 million, an increase of 4.5%, or $4.1 million, compared to $91.0 million in the prior year period. Interest expense, net was $16.5 million and $14.5 million in the second quarter of 2025 and 2024, respectively, with the increase primarily driven by higher borrowings outstanding under BellRing's revolving credit facility. Income tax expense was $19.9 million in the second quarter of 2025, an effective income tax rate of 25.3%, compared to $19.3 million in the second quarter of 2024, an effective income tax rate of 25.2%. Net earnings were $58.7 million, an increase of 2.6%, or $1.5 million, compared to $57.2 million in the prior year period. Net earnings per diluted common share were $0.45, an increase of 4.7%, compared to $0.43 in the prior year period. Adjusted net earnings* were $68.7 million, an increase of 16.0%, compared to $59.2 million in the prior year period. Adjusted diluted earnings per common share* were $0.53, an increase of 17.8%, compared to $0.45 in the prior year period. Adjusted EBITDA* was $118.6 million, an increase of 14.4%, or $14.9 million, compared to $103.7 million in the prior year period. *Adjusted net earnings, Adjusted diluted earnings per common share and Adjusted EBITDA are non-GAAP measures. For additional information regarding non-GAAP measures, see the related explanations presented under 'Use of Non-GAAP Measures' later in this release. Six Month Results Net sales were $1,120.9 million, an increase of 21.2%, or $195.9 million, compared to the prior year period, driven by 17.8% increase in volume and 3.4% increase in price/mix. Premier Protein net sales increased 24.0%, driven by 18.0% increase in volume and 6.0% increase in price/mix. Dymatize net sales increased 7.5%, driven by 16.3% increase in volume and 8.8% decrease in price/mix. Gross profit was $389.4 million, or 34.7% of net sales, an increase of 24.7%, or $77.1 million, compared to $312.3 million, or 33.8% of net sales, in the prior year period. Adjusted gross profit* was $400.8 million, or 35.8% of net sales, an increase of $85.8 million, or 27.2%, compared to $315.0 million, or 34.1% of net sales, in the prior year period. In the six months ended March 31, 2025, gross profit and adjusted gross profit benefited from improved pricing which was partly offset by net input cost inflation and incremental promotional activity. *Adjusted gross profit and adjusted gross profit margin are non-GAAP measures that exclude mark-to-market adjustments on commodity hedges. For additional information regarding non-GAAP measures, see the related explanations presented under 'Use of Non-GAAP Measures' later in this release. SG&A expenses were $170.6 million, or 15.2% of net sales, an increase of $48.7 million compared to $121.9 million, or 13.2% of net sales, in the prior year period. SG&A expenses in the six months ended March 31, 2025 included higher marketing and consumer advertising expenses of $21.4 million and increased distribution and warehousing expenses on higher volumes. Operating profit was $210.4 million, an increase of 28.3%, or $46.4 million, compared to $164.0 million in the prior year period. In the six months ended March 31, 2024, operating profit was negatively impacted by $17.4 million of accelerated amortization, which was incurred in connection with the discontinuance of the North American PowerBar business and treated as an adjustment for non-GAAP measures. Interest expense, net was $30.9 million and $29.4 million in the six months ended March 31, 2025 and 2024, respectively, with the increase primarily driven by higher borrowings outstanding under BellRing's revolving credit facility. Income tax expense was $43.9 million in the six months ended March 31, 2025, an effective income tax rate of 24.5%, compared to $33.5 million in the six months ended March 31, 2024, an effective income tax rate of 24.9%. Net earnings were $135.6 million, an increase of 34.1%, or $34.5 million, compared to $101.1 million in the prior year period. Net earnings per diluted common share were $1.04, an increase of 36.8%, compared to $0.76 in the prior year period. Adjusted net earnings* were $144.9 million, an increase of 24.4%, compared to $116.5 million in the prior year period. Adjusted diluted earnings per common share* were $1.11, an increase of 26.1%, compared to $0.88 in the prior year period. Adjusted EBITDA* was $243.9 million, an increase of 19.4%, or $39.7 million, compared to $204.2 million in the prior year period. *Adjusted net earnings, Adjusted diluted earnings per common share and Adjusted EBITDA are non-GAAP measures. For additional information regarding non-GAAP measures, see the related explanations presented under 'Use of Non-GAAP Measures' later in this release. Share Repurchases During the second quarter of 2025, BellRing repurchased 2.4 million shares for $171.7 million at an average price of $71.68 per share. During the six months ended March 31, 2025, BellRing repurchased 2.5 million shares for $182.7 million at an average price of $71.98 per share. As of March 31, 2025, BellRing had $280.0 million remaining under its share repurchase authorization. Outlook BellRing management has affirmed its fiscal year 2025 outlook and continues to expect net sales to range between $2.26-$2.34 billion and Adjusted EBITDA to range between $470-$500 million (resulting in net sales and Adjusted EBITDA growth of 13%-17% and 7%-14%, respectively, over fiscal year 2024). BellRing management expects fiscal year 2025 capital expenditures of approximately $9 million. BellRing provides Adjusted EBITDA guidance only on a non-GAAP basis and does not provide a reconciliation of its forward-looking Adjusted EBITDA non-GAAP guidance measure to the most directly comparable GAAP measure due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, including adjustments that could be made for mark-to-market adjustments on commodity hedges and other charges reflected in BellRing's reconciliations of historical numbers, the amounts of which, based on historical experience, could be significant. For additional information regarding BellRing's non-GAAP measures, see the related explanations presented under 'Use of Non-GAAP Measures.' Use of Non-GAAP Measures BellRing uses certain non-GAAP measures in this release to supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles ('GAAP'). These non-GAAP measures include Adjusted gross profit, Adjusted gross profit margin, Adjusted net earnings, Adjusted diluted earnings per common share, Adjusted EBITDA and Adjusted EBITDA as a percentage of net sales. The reconciliation of each of these non-GAAP measures to the most directly comparable GAAP measure is provided later in this release under 'Explanation and Reconciliation of Non-GAAP Measures.' Management uses certain of these non-GAAP measures, including Adjusted EBITDA and Adjusted EBITDA as a percentage of net sales, as key metrics in the evaluation of underlying company performance, in making financial, operating and planning decisions and, in part, in the determination of bonuses for its executive officers and employees. Additionally, BellRing is required to comply with certain covenants and limitations that are based on variations of EBITDA in its financing documents. Management believes the use of these non-GAAP measures provides increased transparency and assists investors in understanding the underlying operating performance of BellRing and in the analysis of ongoing operating trends. Non-GAAP measures are not prepared in accordance with GAAP, as they exclude certain items as described later in this release. These non-GAAP measures may not be comparable to similarly titled measures of other companies. For additional information regarding BellRing's non-GAAP measures, see the related explanations provided under 'Explanation and Reconciliation of Non-GAAP Measures' later in this release. Conference Call to Discuss Earnings Results and Outlook BellRing will host a conference call on Tuesday, May 6, 2025 at 9:00 a.m. EDT to discuss financial results for the second quarter of fiscal year 2025 and fiscal year 2025 outlook and to respond to questions. Darcy H. Davenport, President and Chief Executive Officer, and Paul A. Rode, Chief Financial Officer, will participate in the call. Interested parties may join the conference call by registering in advance at the following link: BellRing Q2 2025 Earnings Conference Call . Upon registration, participants will receive a dial-in number and a unique passcode to access the conference call. Interested parties are invited to listen to the webcast of the conference call, which can be accessed by visiting the Investor Relations section of BellRing's website at . A slide presentation containing supplemental material will also be available at the same location on BellRing's website. A webcast replay also will be available for a limited period on BellRing's website in the Investor Relations section. Prospective Financial Information Prospective financial information is necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying the prospective financial information described above will not materialize or will vary significantly from actual results. For further discussion of some of the factors that may cause actual results to vary materially from the information provided above, see 'Forward-Looking Statements' below. Accordingly, the prospective financial information provided above is only an estimate of what BellRing's management believes is realizable as of the date of this release. It also should be recognized that the reliability of any forecasted financial data diminishes the farther in the future that the data is forecasted. In light of the foregoing, the information should be viewed in context and undue reliance should not be placed upon it. Forward-Looking Statements Certain matters discussed in this release and on BellRing's conference call are forward-looking statements, including BellRing's net sales, Adjusted EBITDA and capital expenditures outlook for fiscal year 2025. These forward-looking statements are sometimes identified from the use of forward-looking words such as 'believe,' 'should,' 'could,' 'potential,' 'continue,' 'expect,' 'project,' 'estimate,' 'predict,' 'anticipate,' 'aim,' 'intend,' 'plan,' 'forecast,' 'target,' 'is likely,' 'will,' 'can,' 'may' or 'would' or the negative of these terms or similar expressions, and include all statements regarding future performance, earnings projections, events or developments. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements made herein. These risks and uncertainties include, but are not limited to, the following: These forward-looking statements represent BellRing's judgment as of the date of this release. BellRing disclaims, however, any intent or obligation to update these forward-looking statements. About BellRing Brands, Inc. BellRing Brands, Inc. (NYSE: BRBR) is a dynamic and fast-growing consumer brands business with the purpose of Changing Lives with Good Energy. Focused on growing the convenient nutrition category, the company's brands include Premier Protein , the #1 ready-to-drink protein and convenient nutrition brand, and Dymatize , the brand behind the #1 hydrolyzed protein powder. A culture-driven, pure-play company, BellRing Brands believes nutrition is at the core of a healthy world and produces products with best-in-class nutritional profiles and exceptional flavors. Its products are distributed in over 90 countries across club, mass, food, eCommerce, specialty, drug and convenience. To learn more visit . Contact: Investor Relations Jennifer Meyer (415) 814-9388 EXPLANATION AND RECONCILIATION OF NON-GAAP MEASURES BellRing uses certain non-GAAP measures in this release to supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles ('GAAP'). These non-GAAP measures include Adjusted gross profit, Adjusted gross profit margin, Adjusted net earnings, Adjusted diluted earnings per common share, Adjusted EBITDA and Adjusted EBITDA as a percentage of net sales. The reconciliation of each of these non-GAAP measures to the most directly comparable GAAP measure is provided in the tables following this section. Non-GAAP measures are not prepared in accordance with GAAP, as they exclude certain items as described below. These non-GAAP measures may not be comparable to similarly titled measures of other companies. Adjusted gross profit and Adjusted gross profit margin BellRing believes Adjusted gross profit is useful to investors in evaluating BellRing's underlying profitability of its revenue-generating activities as it excludes mark-to-market adjustments on commodity hedges (which are primarily non-cash and not consistent across periods; see the explanation below for more information). BellRing believes Adjusted gross profit margin (Adjusted gross profit as a percentage of net sales) is useful to investors in evaluating BellRing's operating performance because it allows for more meaningful comparison of operating performance across periods. Adjusted net earnings and Adjusted diluted earnings per common share BellRing believes Adjusted net earnings and Adjusted diluted earnings per common share are useful to investors in evaluating BellRing's operating performance because they exclude items that affect the comparability of BellRing's financial results and could potentially distort an understanding of the trends in business performance. Adjusted net earnings and Adjusted diluted earnings per common share are adjusted for the following items: Adjusted EBITDA and Adjusted EBITDA as a percentage of net sales BellRing believes that Adjusted EBITDA is useful to investors in evaluating BellRing's operating performance and liquidity because (i) BellRing believes it is widely used to measure a company's operating performance without regard to items such as depreciation and amortization, which can vary depending upon accounting methods and the book value of assets, (ii) it presents a measure of corporate performance exclusive of BellRing's capital structure and the method by which the assets were acquired and (iii) it is a financial indicator of a company's ability to service its debt, as BellRing is required to comply with certain covenants and limitations that are based on variations of EBITDA in its financing documents. Management uses Adjusted EBITDA to provide forward-looking guidance and to forecast future results. BellRing believes that Adjusted EBITDA as a percentage of net sales is useful to investors in evaluating BellRing's operating performance because it allows for more meaningful comparison of operating performance across periods. Adjusted EBITDA reflects adjustments for income tax expense, interest expense, net and depreciation and amortization including accelerated amortization, and the following adjustments discussed above: mark-to-market adjustments on commodity hedges, provision for legal matters and foreign currency gain/loss on intercompany loans. Additionally, Adjusted EBITDA reflects an adjustment for the following item:
