BellRing Brands (BRBR) investor relations material

Executive summary

• Net sales for the quarter ended June 30, 2026, increased 4% year-over-year to $570.4 million, driven by growth in both Premier Protein and Dymatize brands, despite a $10 million inventory-related charge impacting results.

• Net earnings rose 63% to $34.2 million for the quarter, reflecting higher sales and the absence of prior-year legal provisions.

• Adjusted EBITDA for the quarter was $78.3 million, down $42.0 million from the prior year, reflecting inventory charges and input cost inflation.

• Leadership transition with Michael Axelrod appointed CEO effective July 29, 2026, focused on operational discipline and long-term value creation.

• The company remains the category leader in ready-to-drink protein shakes, with strong consumer demand and a long runway for growth.

Financial highlights

• Third quarter gross profit was $163.3 million (28.6% margin), down from $193.6 million (35.4%) year-over-year, impacted by input cost inflation, higher freight, and a $10 million excess inventory charge.

• Adjusted gross profit for the quarter was $157.9 million (27.7% margin), down from $192.4 million (35.1%).

• SG&A expenses for the quarter were $93.7 million (16.4% of sales), including increased advertising and a $5 million charge for organizational realignment.

• Net earnings per diluted share were $0.29 for the quarter, up from $0.17 in the prior year.

• Cash provided by operating activities for the nine months was $65.0 million, down from $91.5 million in the prior year.

Outlook and guidance

• Fiscal 2026 net sales outlook updated to $2.335–$2.375 billion (1–3% growth); Adjusted EBITDA guidance of $275–$295 million, including a $28 million unfavorable inventory impact and ~12% margin.

• Fourth quarter net sales expected to be flat at midpoint; Premier up low single digits, Dymatize down mid-single digits.

• Fourth quarter adjusted EBITDA margin expected at ~10%, reflecting seasonal promotions and ongoing cost inflation.

• Double-digit price increases on Premier Shakes and powders effective Q1 2027 to offset inflation and support margins.

• 2027 margins expected to improve as inventory-related headwinds and cost pressures subside.