BellRing Brands (BRBR) Q1 2025 earnings summary

Executive summary

• Fiscal 2025 began with strong momentum, with Q1 net sales up 24% year-over-year to $532.9 million, driven by Premier Protein and Dymatize brands.

• Net earnings rose 75% to $76.9 million, and operating profit increased 58% to $115.3 million, reflecting improved margins and lower costs.

• Premier Protein achieved record household penetration and distribution, with RTD shakes and powder consumption up over 23%.

• The business is focused on demand generation, leveraging expanded capacity, national advertising, and innovation.

• Fiscal 2025 outlook was raised for both net sales and adjusted EBITDA, reflecting strong category momentum.

Financial highlights

• Q1 net sales reached $533 million, up 24% year-over-year; adjusted EBITDA was $125 million, up 25%.

• Gross profit grew 35% to $200 million, with gross margin up 310 bps to 37.5%.

• Adjusted EBITDA margin was 23.5%, exceeding expectations due to favorable gross margins and marketing spend timing.

• Diluted EPS was $0.59, up from $0.33 year-over-year; adjusted diluted EPS was $0.58, up from $0.43.

• Cash from operations was $3 million, down from $74.2 million, mainly due to inventory build and timing of payables.

Outlook and guidance

• Fiscal 2025 net sales guidance raised to $2.26–$2.34 billion (13–17% growth); adjusted EBITDA guidance raised to $470–$500 million (7–14% growth).

• Adjusted EBITDA margins expected at 21.1% midpoint for the year, with stronger growth in the first half due to marketing and cost phasing.

• Q2 net sales expected to grow mid-to-high teens, with Premier Protein as the main driver; Dymatize and others expected flat to down.

• Capital expenditures for fiscal 2025 expected to be approximately $7 million.

• The company expects to generate positive cash flows and maintain sufficient liquidity.