National Beverage (FIZZ) investor relations material

Executive summary

• Net sales for the third quarter of fiscal 2026 were $265 million, down 0.9% year-over-year, primarily due to a 4.8% decline in case volume, partially offset by a 4.4% increase in average selling price per case.

• Gross profit rose to $100 million, with gross margin improving by 60 basis points year-over-year to 37.6%, driven by higher selling prices despite increased packaging costs and lower volume.

• Net income for the quarter was $41.2 million, up from $39.6 million in the prior year period; diluted EPS was $0.44, a 5% increase year-over-year.

• Operating cash flow reached $136 million, and quarter-end cash grew to $314 million.

• January shipments rose 7% year-over-year despite winter storm disruptions, with initial fourth quarter shipments showing continued volume improvements.

Financial highlights

• Operating income for the quarter was $51.1 million, up from $50.6 million year-over-year; for the nine months, operating income was $180.0 million, up from $178.0 million.

• Trailing twelve months net sales totaled $1.2 billion, with net income of $188.1 million.

• Gross margin for the nine months increased to 37.8% from 37.3% year-over-year, driven by higher average selling prices.

• Selling, general and administrative expenses remained flat at $48.4 million for the quarter, but increased to $154.3 million for the nine months, mainly due to higher marketing and selling costs.

• Interest income increased to $2.8 million for the quarter and $7.7 million for the nine months, reflecting higher average invested balances.

Outlook and guidance

• Management expects existing capital resources, including $150 million in available credit facilities, to be sufficient for liquidity and capital requirements over the next twelve months.

• Fiscal 2026 capital expenditures are anticipated to not exceed fiscal 2025 levels, with ongoing production capacity and efficiency projects.

• Continued monitoring of tariff-related cost increases, with potential price adjustments to balance consumer impact and company absorption.

• Fourth quarter initial shipments indicate ongoing volume growth over the prior year.

• Focus remains on balancing volume, pricing, and margins in a dynamic marketplace.