National Beverage (FIZZ) Q2 2025 earnings summary

Executive summary

• Net sales for Q3 FY2025 decreased 1.1% year-over-year to $267.1 million, mainly due to a 3.4% drop in case volume, partially offset by a 2.2% increase in average selling price per case.

• Gross profit rose to $99.0 million from $97.0 million, with gross margin improving to 37.1% from 35.9% due to higher selling prices and lower packaging costs.

• Net income for Q3 FY2025 was $39.6 million, nearly flat compared to $39.6 million in the prior year quarter.

• Reported continued earnings growth despite challenging market conditions and supply chain disruptions from severe storms in the Southeastern US.

• Innovation and new product launches, such as LaCroix Strawberry Peach, contributed to positive consumer response.

Financial highlights

• Operating income for Q3 FY2025 was $50.6 million, up from $48.2 million year-over-year.

• Gross margin for the nine-month period increased to 37.3% from 35.7% year-over-year.

• Diluted EPS for Q3 FY2025 was $0.42, unchanged from the prior year; nine-month diluted EPS was $1.52, up from $1.42.

• Cash and cash equivalents at quarter-end were $149.2 million, down from $327.0 million at the start of the period, mainly due to a special dividend.

• Net cash provided by operating activities for the nine months was $146.6 million, up from $137.5 million year-over-year.

Outlook and guidance

• Management expects existing capital resources to be sufficient for liquidity and capital requirements over the next twelve months.

• Fiscal 2025 capital expenditures are anticipated to be in the range of $25 to $30 million.

• Optimism for future growth based on increased October volume and improving consumer confidence.

• Anticipates nationwide rollout of new LaCroix flavors and continued product innovation.