Guidance Potential
Q: Can demand exceed high-end guidance?
A: Management noted they have the production flexibility to meet and even exceed the high-end guidance if demand stays robust. "

Revenue Outlook
Q: Will Q3 revenue be higher than Q2?
A: The company expects a modest sequential increase in Q3 revenue compared to Q2. "

Gross Margin Build-Up
Q: How built 300 bp margin expansion?
A: They attributed the 300 basis point gain primarily to lower protein costs versus last year, partially offset by promotions. " "

Gross Margin Seasonality
Q: Are Q3 and Q4 margins comparable?
A: Management expects margins in Q3 and Q4 to be similar, with Q3 showing slightly better year-over-year favorability. "

Margin Drivers
Q: What factors drove margin expansion?
A: Key drivers included lower protein costs, volume leverage, and some nonrecurring adjustments, mildly offset by promotions. "

Cost Outlook
Q: Will input costs moderate this quarter?
A: Costs are projected to increase sequentially in Q3—especially for powders—even though protein costs remain relatively favorable. "

Capacity Expansion
Q: What are the 2025 capacity plans?
A: They plan to grow shake production by over 20% in 2025, supported by expanding greenfield facilities. "

Powder Investment
Q: Will resources shift between powder brands?
A: Management intends to support both brands, with an extra focus on Premier Powder given its strong growth trajectory. "

Q3 Guidance
Q: Is Q3 tracking with second-half growth?
A: Q3 results are expected to mirror second-half growth rates with similar promotional pacing year-over-year. "

Promotions Impact
Q: What learnings emerged from promotions?
A: Recent promotions delivered robust displays and consumer response, confirming the brand’s fundamentals. "

Pricing Increase Rationale
Q: Why is a price increase planned?
A: The upcoming Q4 shake price hike is driven by rising costs and competitive actions, aligning with industry trends. "

Non-Promoted Growth
Q: What fuels non-promoted sales acceleration?
A: Approximately 80% of growth is coming from non-promoted channels, drawing new households into the category. "

Consumer Metrics
Q: What are current penetration and repeat rates?
A: Premier reached over 18% household penetration with a 50% repeat rate, showcasing strong loyalty. " "

Consumer Base Expansion
Q: Is the consumer base broadening?
A: The brand is successfully attracting a wider age mix while remaining focused on adult nutrition. "

Brand Interaction
Q: Is Premier Powder affecting Dymatize sales?
A: There’s minimal overlap as each caters to distinct consumer segments, limiting trade-down effects. "

Marketing Spend Shift
Q: Are marketing dollars shifting among brands?
A: Some marketing funds have been reallocated to support both Premier Powder and Dymatize more efficiently. "

Club Promo Competition
Q: Will competitors mimic club promotions?
A: Most competitors are already active in club promotions, and similar events are typical industry practice. "

E-commerce Competition
Q: Will e-com discounting persist for Dymatize?
A: Aggressive e-com discounting is noted now, but it should ease as rising commodity costs influence pricing. "

TDP Recovery
Q: When will temporary out-of-stocks improve?
A: Improvements in TDPs are expected monthly through Q3, reaching optimal levels in Q4. "

Shipments vs Consumption
Q: Will shipments modestly exceed consumption?
A: Shipments are projected to slightly outpace consumption as retailers incrementally restock. "

Out-of-stock Behavior
Q: Do customers switch flavors when out-of-stock?
A: Customers typically choose alternate flavors or pack sizes, maintaining their brand preference. "

TDP Shelf Recovery
Q: What happens to shelf space during shortages?
A: Temporary shelf gaps occur during TDP shortages, but space is quickly reclaimed without lasting loss. "

Aisle Placement Expansion
Q: Can in-store placements be expanded?
A: The focus remains on boosting displays, particularly in pharmacy sections, to enhance visibility. "

Long-term Display Strategy
Q: Is external display placement sustainable?
A: Retailers' strong interest in health and wellness trends supports ongoing external displays. "

E-com & In-store Synergy
Q: Can physical channels boost e-com sales?
A: Initiatives to integrate in-store promotions and sampling aim to enhance Dymatize’s e-com performance. "