BellRing Brands (BRBR) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 net sales grew 19.8% year-over-year to $1,996.2 million, with adjusted EBITDA up 30.1% to $440.2 million, both exceeding long-term targets.

• Premier Protein and Dymatize brands achieved record household penetration, market share, and distribution, with Premier Protein maintaining the #1 RTD market share at 23%.

• The company is shifting from supply-constrained to demand-driven growth, with significant marketing investments planned for 2025.

• The convenient nutrition category grew 6% year-over-year, with RTD products up 13% and RTM growth moderating.

• Club channel returned to growth, and Premier Protein led the RTD shake category with a 23% tracked market share and record household penetration up 19% in FY24.

Financial highlights

• Q4 net sales reached $556 million, up 18% year-over-year; adjusted EBITDA was $117 million, also up 18%.

• Full-year net sales were just under $2 billion, up 20%; adjusted EBITDA was $440 million, up 30%, with a margin of 22.1%.

• Q4 gross profit was $205.1 million (36.9% margin), up from $155.3 million (32.9%) year-over-year, aided by input cost deflation and production attainment fees.

• Q4 net earnings per diluted share were $0.55, up 57.1% year-over-year; adjusted net earnings per share were $0.51, up 24.4%.

• Fiscal 2024 SG&A expenses rose to $284.6 million (14.3% of sales), reflecting higher marketing, employee, and distribution costs.

Outlook and guidance

• Fiscal 2025 net sales are expected to grow 12%-16% to $2.24-$2.32 billion; adjusted EBITDA is projected to grow 5%-11% to $460-$490 million.

• Adjusted EBITDA margins are expected to decline 130 basis points to 20.8% at the midpoint, mainly due to input cost inflation and increased marketing.

• Q1 2025 net sales growth is forecasted to exceed 20%, with Premier Protein as the main driver.

• Capital expenditures for fiscal 2025 projected at approximately $7 million.