National Beverage (FIZZ) Q3 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% decline in case volume, partially offset by a 2.2% increase in average selling price per case.

• Operating income for Q3 FY2025 was $50.6 million, up from $48.2 million year-over-year, and EPS remained at $0.42 (basic and diluted).

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

• Trailing twelve months net sales reached $1.2 billion, operating profit rose 8% to $231 million, and net income increased 10% to $186 million.

• For the first nine months of FY2025, net sales decreased 0.7% to $887.7 million, while net income increased to $142.1 million from $133.0 million year-over-year.

Financial highlights

• 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.

• Cash and cash equivalents at quarter-end were $149.2 million, down from $327.0 million at the start of the fiscal year, primarily due to a $304.1 million special dividend.

• EPS for Q3 FY2025 remained at $0.42, and for the nine months was $1.52, up from $1.42.

• Gross margin for the nine months improved to 37.3% from 35.7% year-over-year.

• Trailing twelve months EPS increased to $1.99 from $1.81 year-over-year.

Outlook and guidance

• Management anticipates FY2025 capital expenditures in the range of $25 to $30 million, with ongoing production capacity and efficiency projects.

• Existing capital resources are expected to be sufficient for liquidity and capital requirements over the next twelve months.

• Management remains optimistic, citing innovation and marketing as drivers for future growth.

• New product concepts are being tested and are exceeding expectations, potentially impacting the sparkling water category.