BellRing Brands (BRBR) investor relations material

Executive summary

• First quarter net sales reached $537.3 million, up 1% year-over-year, driven by strong Dymatize international growth but offset by lower Premier Protein sales and increased promotional activity.

• Premier Protein maintained leadership with a 22% RTD market share, record household penetration, and high repeat rates, despite a 2% decline in RTD consumption due to club channel headwinds.

• The wellness category expanded to $24 billion, growing 7% year-over-year, now including hydration, protein coffee, shelf-stable milk, and protein treats.

• CEO Darcy H. Davenport announced retirement effective by September 30, 2026, with a national search for a successor underway and transition to a Senior Advisor role through 2028.

• Net earnings fell 43% year-over-year to $43.7 million, with diluted EPS at $0.36, due to higher input costs and increased interest expense.

Financial highlights

• Adjusted EBITDA was $90.3 million (16.8% margin), ahead of guidance due to higher sales and SG&A leverage.

• Gross profit was $160.8 million (29.9% margin), down from $199.6 million (37.5%) due to input cost inflation and unfavorable mix.

• SG&A expenses were $78 million, 14.5% of sales, down from 15% in the prior year.

• Interest expense increased to $20 million from $14.4 million, reflecting higher borrowings.

• $97 million in share repurchases completed in Q1.

Outlook and guidance

• FY2026 net sales guidance narrowed to 4%-6% growth ($2.41B-$2.46B); adjusted EBITDA guidance updated to $425-$440 million (approx. 18% margin), reflecting higher whey costs and increased promotional investment.

• Q2 net sales growth expected at 3%-4% for both Premier and Dymatize; Q2 EBITDA margin expected at 13%.

• Significant sequential margin improvement expected in the second half as cost savings and sales growth accelerate.

• Management anticipates positive cash flows from operations and sufficient liquidity to meet obligations over the next twelve months.

• All prospective information is based on estimates as of February 3, 2026, and is subject to significant uncertainties and assumptions.