BellRing Brands had a successful first quarter, noting a 19% increase in volumes. With the Premier Protein shakes and powders brand showing strong growth, the company raised its full-year outlook to $1.87-$1.95bn, up from the previous range of $1.83-$1.91bn. Additionally, non-GAAP adjusted EBITDA increased by 18.4% to $100.5m in the quarter, leading the company to revise the guidance to $375-$400m.
The rise in Premier Protein brand sales, up 18.9% and Dymatize’s sales and volumes, up 20.9% and 32.4% respectively, support the positive outlook. The company anticipates net sales and adjusted EBITDA to grow between 12% and 17%, and between 11% and 18% over fiscal 2023, respectively. Amid the growth, the company is focused on gaining market share in the food and drink industry.
The company’s CEO, Darcy Davenport, noted the strong performance in the first quarter and expressed confidence in the company’s upward trajectory. BellRing Brands, which owns the Premier Protein and Dymatize brands, saw a robust financial performance and has expanded production capacity with the introduction of the new co-manufacturing plant for shakes. The company reported a 19% increase in volumes, indicating a promising growth trajectory in the food and beverage industry.
Analysts are also optimistic about the company’s growth. John Baumgartner, a managing director at Mizuho Securities, remarked that BellRing Brands’ “momentum” was “intact”. The company’s gross margin is expected to be bolstered by “lower protein costs, offset partially by increased promotional spend and other input-cost inflation”, stated CFO Paul Rode. The positivity surrounding the company’s performance has also been reflected in the rise in its stock value.
The company, which focuses on leading mainstream brands with low household penetration and strong loyalty, is positioned well to capitalize on a growing category with a tonne of upside. BellRing Brands is making strides in the food and drink consumer trends segment, which continues to exhibit strong consumption trends and potential for growth. The company expects to benefit from the rise of the GLP-1 weight-loss drugs in the US and is confident about the future growth of its business.
Moreover, BellRing Brands is making efforts to enhance visibility and reach new customers. The company has introduced new products and implemented price promotions and distribution gains, supporting the future growth of the business. With a strong financial performance and a strategic approach to expanding its product lines, BellRing Brands is poised for continued success in the food and beverage industry.
