BellRing Brands (BRBR) investor relations material

Executive summary

• Net sales reached $548M in Q3, up 6% year-over-year, with adjusted EBITDA of $120M and a 22% margin, driven by Premier Protein and Dymatize growth.

• Premier Protein RTD shakes saw 19%–25% consumption growth and a 25%–30% RTD market share, maintaining category leadership.

• Dymatize brand achieved strong velocities, reaching the #4 powder share and returning to growth with 5%–5.4% net sales increase.

• Record household penetration and distribution gains were achieved, with innovation in new shake lines and expanded merchandising.

• Operating profit and net earnings declined due to a $68M legal provision and higher costs.

Financial highlights

• Net sales grew 6% year-over-year to $548M; adjusted EBITDA reached $120M with a 22% margin.

• Adjusted gross profit was $192M–$193.6M, margin 35.1%–35.4%, down year-over-year due to input cost inflation and higher promo spend.

• SG&A included a $68M legal provision for Joint Juice litigation, excluded from non-GAAP results.

• Cash flow from operations was $40M in Q3 and $91.5M year-to-date; cash and equivalents at quarter-end were $43.7M.

• Repurchased 1.3M shares in Q3 for $83M; 3.8M shares year-to-date for $265.6M–$267.6M.

Outlook and guidance

• Fiscal 2025 net sales guidance narrowed to $2.28B–$2.32B and adjusted EBITDA to $480M–$490M, implying 14–16% sales and 9–11% EBITDA growth.

• Q4 net sales expected to grow 14% at midpoint; Premier Protein to lead, Dymatize to grow mid-single digits.

• Q4 adjusted EBITDA margin expected at ~19%, with lower gross margins due to higher promo spend and input cost inflation.

• Tariff headwinds on dairy protein from NZ/EU expected to impact fiscal 2026 COGS by low single digits; no impact in 2025.

• No significant capital expenditures planned; capex for FY25 expected at $9M.