BellRing Brands (BRBR) Q2 2025 earnings summary

Executive summary

• Q2 net sales rose 19% year-over-year to $588 million, driven by strong Premier Protein volume growth and targeted price increases, with net earnings up 3% to $58.7 million and operating profit at $95.1 million.

• Premier Protein shakes saw 25% consumption growth, reaching record highs in household penetration (20.9%) and market share, while Dymatize returned to growth with new RTD launches.

• The company reaffirmed its FY2025 outlook for net sales growth of 13%–17% ($2.26–$2.34 billion) and adjusted EBITDA growth of 7%–14% ($470–$500 million).

• Category fundamentals remain robust, with convenient nutrition and RTD segments showing double-digit growth and Premier Protein leading in tracked market share.

• Risks include input cost inflation, supply chain disruptions, and changing consumer preferences.

Financial highlights

• Q2 net sales were $588 million (+19% YoY); adjusted EBITDA was $119 million (+14% YoY) with a 20.2% margin.

• Adjusted gross profit grew 22% to $203 million (34.5% margin); Q2 gross profit was $189.8 million (32.3% margin).

• Q2 net earnings were $58.7 million (+3% YoY); diluted EPS was $0.45.

• SG&A expenses rose to $91 million, mainly due to higher advertising and warehousing costs.

• Cash flow from operations was $48 million in Q2 and $51 million for the first half.

Outlook and guidance

• FY2025 guidance affirmed: net sales of $2.26–$2.34 billion and adjusted EBITDA of $470–$500 million.

• Second half net sales outlook unchanged, with Q3 growth expected in low single digits due to retailer inventory reductions.

• Adjusted EBITDA margins for the second half expected just over 20%, with margin pressure from input-cost inflation and increased promotional spend.

• No significant capital expenditures planned for the next 12 months; focus on working capital, debt service, and share repurchases.

• No expected tariff impact in FY2025; partial impact possible in 2026, with mitigation strategies under evaluation.