BellRing Brands, a US-based nutrition business, is capitalizing on the ongoing protein boom in the food and beverage industry. The company has recently announced an increase in its sales and earnings guidance for fiscal 2024 after exceeding its own Q3 financial expectations. With notable brands like Premier Protein shake and Dymatize protein powder under its ownership, BellRing Brands has also seen an improvement in margins due to lower input costs.
In the third quarter, BellRing recorded a 15.6% year-on-year growth in net sales, reaching $514.4m, along with a 46.8% increase in operating profit and a 37.5% rise in adjusted EBITDA to $119.5m. Building on these results, the company now forecasts net sales of $1.96bn to $2bn for fiscal year 2024, up from the previous guidance of $1.93bn to $1.99bn. Furthermore, it anticipates adjusted EBITDA to range between $430m to $440m, compared to the previous estimates of $400m to $420m.
CEO and president Darcy Davenport expressed satisfaction with the performance, highlighting the success of Premier Protein shake and the company’s efforts to expand its product formats and sizes. Consumption growth for Premier Protein shakes, particularly in June and July, drove the positive results, further boosted by favorable margins attributed to lower powder input costs.
Although experiencing a 2.6% decline in net sales for Dymatize protein powder, BellRing saw a 4.4% increase in volume offset by a 7.0% decrease in price/mix. Analysts, like John Baumgartner from Mizuho Securities, view the company’s results positively, forecasting continued growth and performance excellence in the upcoming quarter.
In conclusion, BellRing Brands’ strategic moves in the protein segment amidst market fluctuations demonstrate its resilience and capacity to thrive in the competitive food and drink consumer trends landscape.
