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BELLRING BRANDS, INC. (BRBR)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered robust top-line growth: net sales $588.0M (+18.9% YoY) with Adjusted EBITDA $118.6M (20.2% margin), while adjusted diluted EPS was $0.53; guidance for FY25 net sales $2.26–$2.34B and Adjusted EBITDA $470–$500M was affirmed .
  • Revenue was above Wall Street consensus ($588.0M vs $578.7M*), while adjusted EPS was essentially in line ($0.53 vs $0.533*); management flagged a Q3 retailer trade-inventory reset and higher input costs as near-term margin headwinds * [functions.GetEstimates].
  • Premier Protein consumption accelerated across channels; household penetration reached ~20.9% and RTD category share peaked near 30% in March, aided by promotions, media and new products .
  • Management expanded planned Q4 promotions (capacity now supports displays) and remains “bullish” on category runway; tariffs are being monitored with no FY25 impact expected and low single-digit COGS risk in FY26 if unmitigated .
  • Stock reaction catalysts: near-term pressure from Q3 trade de-load and sequentially lower margins vs Q4 promotion benefits and strong consumption underpinning FY25 guide confidence .

What Went Well and What Went Wrong

What Went Well

  • Broad-based growth: Net sales +18.9% (volume +15.3%, price/mix +3.6%); Premier Protein net sales +22.0% (RTD +21.7% on +15.2% volume and +6.5% price/mix), powders +21.7% tracked consumption .
  • Brand metrics at highs: “Premier Protein household penetration and market share [reached] new all-time highs,” driven by promotions, media, and new items; management affirmed FY25 outlook despite macro uncertainty .
  • Share repurchases: 2.4M shares repurchased for $171.7M at $71.68 avg in Q2; $280M authorization remaining as of 3/31/25 .

What Went Wrong

  • Margins pressured: Gross margin fell to 32.3% (from 33.2%); adjusted gross margin 34.5% (+80bps YoY) but SG&A rose to 15.4% of sales (A&P 4.7%), and input cost inflation expected to intensify in 2H FY25 .
  • Q3 headwind: Several key retailers lowered weeks-of-supply; Q3 net sales growth guided low single digits (Premier Protein main driver) despite underlying consumption mid- to high-teens—timing issue from trade de-load and lapping prior replenishment .
  • Dymatize mixed: Net sales +3.0% (volume +20.4%, price/mix −17.3%), with domestic channel headwinds and promotion-driven price/mix pressure despite international strength and RTD launch .

Financial Results

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Millions)$555.8 $532.9 $588.0
Net Sales YoY Growth (%)17.6% 23.8% 18.9%
Gross Profit Margin (%)36.9% 37.5% 32.3%
GAAP Diluted EPS ($)$0.55 $0.59 $0.45
Adjusted Diluted EPS ($)$0.51 $0.58 $0.53
Adjusted EBITDA ($USD Millions)$116.5 $125.3 $118.6
Adjusted EBITDA Margin (%)21.0% 23.5% 20.2%
Actual vs Consensus (S&P Global)Q1 2025Q2 2025
Revenue: Actual vs Consensus ($USD Millions)$532.9 vs $524.7*$588.0 vs $578.7*
Adjusted/Primary EPS: Actual vs Consensus ($)$0.58 vs $0.479*$0.53 vs $0.533*

Values with asterisk (*) retrieved from S&P Global.

Segment performance (YoY and drivers):

Segment/FormatQ2 2025 YoYVolume ΔPrice/Mix ΔCommentary
Premier Protein (Total)+22.0% +15.3% +6.7% Driven by distribution gains, increased promotions, higher avg net selling prices offsetting cost inflation
Premier Protein RTD Shakes+21.7% +15.2% +6.5% Consumption accelerated; in-stock improvement and displays/media support
Premier Protein Powders (tracked consumption)+21.7% n/an/aDistribution expansion in club/mass/eCom; velocities strong
Dymatize (Total)+3.0% +20.4% −17.3% Intl growth and new RTD launch; domestic headwinds and new items pressured price/mix

KPIs and category metrics:

KPIQ4 2024Q1 2025Q2 2025
Convenient nutrition category growth (YoY)n/an/a+12%
RTD category growth (YoY)n/an/a+19%
Premier Protein RTD consumption (YoY, 13wks)+14.4% +23.4% +24.9%
Premier Protein Powder consumption (YoY, 13wks)+42.7% +24.4% +21.7%
Dymatize consumption (YoY, 13wks)−10.1% −8.2% +3.0%
Premier Protein Household Penetrationn/an/a~20.9%
Premier Protein RTD Market Sharen/an/a~30% (March) ; call notes 27%
Premier Protein RTD TDPs (All-time high)n/an/aReached ATH; distribution gains
A&P as % of Sales~16.0% SG&A in Q4 includes A&P uplift A&P up $8.9M 4.7% of sales; up from 3.1% last year

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net SalesFY 2025$2.24–$2.32B (Q4 2024) $2.26–$2.34B (raised in Q1; affirmed in Q2) Raised in Q1; Maintained in Q2
Adjusted EBITDAFY 2025$460–$490M (Q4 2024) $470–$500M (raised in Q1; affirmed in Q2) Raised in Q1; Maintained in Q2
CapexFY 2025~$7M (Q4 2024) ~$7M (Q1 2025) ; ~$9M (Q2 2025) Raised in Q2
A&P MixFY 2025n/aMarketing reallocated modestly to promotions; full-year marketing spend “mid-3s to high-3s” % of sales Mix shifted to promotions

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024 and Q1 2025)Current Period (Q2 2025)Trend
Category growth and RTD leadershipMomentum into FY25; RTD/powders strong; market share gains RTD growth +19%; convenience +12%; Premier share/penetration at highs; consumption accelerated Strengthening
Promotions & mediaRaised FY25 guide in Q1; timing aided margins; A&P increased Heavy Q2 promotional/media lift; A&P 4.7% sales; expanded Q4 promotions given KPI success Elevated spend to drive penetration
Retailer inventory (trade)Better in-stocks in Q4; distribution gains One-time weeks-of-supply reduction at key retailers; Q3 low-single-digit net sales growth; underlying consumption mid- to high teens Temporary Q3 headwind
Input costs and marginsNet input cost deflation in Q4 aided margins Input cost inflation to increase in 2H FY25; moderate YoY margin pressure in Q3; sequentially lower in Q4 with promos Margin pressure building
Tariffs/macron/aMonitoring tariffs (NZ/EU dairy); no FY25 impact; potential low single-digit COGS in FY26; mitigation options under review Watching policy; risk manageable
Innovation & packagingn/aIndulgence line (RTD/powder) incremental occasion and new consumers; Q4 innovation aimed at new consumers; packaging redesign costs modest Pipeline building
Channel mix dynamicsn/aFood (grocery) accelerating; no cannibalization; value-seeking moves toward larger packs; club promotions resume pattern Broadening across FDM, club
Dymatize trajectoryIntl-led in Q4; domestic down Domestic consumption +3%; eCom strength; RTD/pre-workout launches; still mixed by channel Gradual improvement

Management Commentary

  • “Our momentum continued this quarter as Premier Protein consumption accelerated. Increased promotions, our media campaign and new products drove Premier Protein household penetration and market share to new all-time highs… I am pleased to affirm our guidance…” — Darcy H. Davenport, CEO .
  • “Adjusted EBITDA margins were in line with our expectations at 20.2%. Pricing actions have offset input cost inflation to date; however, the rate of inflation will increase in the second half of '25, pressuring margins…” — Paul Rode, CFO .
  • “We expanded our Q4 promotions… displays are key to reaching new households… capacity position better than ever allows us to lean into effective tactics.” — Darcy H. Davenport .
  • “We are closely monitoring tariffs… portion of dairy protein inputs (NZ/EU) could be subject to 10% tariffs; no FY25 impact; potential low single-digit COGS impact in FY26 if unmitigated.” — Paul Rode .

Q&A Highlights

  • Category and guidance framing: Management affirmed strong category tailwinds and elected not to tighten guidance given consumer uncertainty despite strong KPIs; could have narrowed otherwise .
  • Retailer inventory reset: Identified as a timing dynamic, primarily one club customer post-supply constraints; guidance assumes one-and-done with no rebound in trade inventory .
  • Marketing ROI and mix: Q2 A&P at 4.7% of sales (vs 3.1% LY); reallocated some 2H spend from marketing to promotions; full-year marketing “mid-3s to high-3s” .
  • Tariffs impact and mitigation: Dairy inputs ~33–40% of COGS; portion potentially tariffed; mitigation includes supplier shifts and pricing; impact not expected in FY25 .
  • Competitive and innovation lens: Protein content arms race not expected to define mainstream; focus remains taste + balanced nutritionals; innovation to capture new occasions (indulgence) and consumers (Q4 launch) .

Estimates Context

  • Q2 2025 revenue above consensus: $588.0M vs $578.7M*, adjusted/primary EPS essentially in line: $0.53 vs $0.533*; coverage depth: 14 revenue estimates and 16 EPS estimates * * [functions.GetEstimates].
  • Q1 2025 revenue above consensus: $532.9M vs $524.7*; adjusted/primary EPS ahead: $0.58 vs $0.479* * *.
  • FY 2025 consensus: revenue ~$2.302B* and EPS ~$2.21*, broadly consistent with affirmed guide midpoint; EBITDA definitions may vary vs company’s Adjusted EBITDA reporting, so compare with caution* [functions.GetEstimates].

Values with asterisk (*) retrieved from S&P Global.

Key Takeaways for Investors

  • Demand remains strong and broad-based; Premier Protein brand metrics and consumption accelerated, supporting FY25 guide despite macro uncertainty .
  • Near-term setup: Expect Q3 revenue softness (low-single-digit growth) from trade de-load and margin pressure from rising input costs; Q4 promotions should drive EBITDA dollars with sequentially lower margins due to higher promo and costs .
  • Marketing mix shift: Elevated promotions/displays are delivering household penetration gains; watch full-year A&P in mid-3s–high-3s % of sales and continued media waves with packaging refresh .
  • Watch tariffs and COGS: Dairy tariffs (NZ/EU) are a FY26 consideration with low single-digit COGS risk if unmitigated; management is exploring supplier/pricing levers .
  • Capital allocation: Aggressive repurchases ($171.7M in Q2) and net leverage ~1.9x; capacity to sustain buybacks with EBITDA growth and sub-2x leverage .
  • Segment trajectory: Dymatize improving (eCom/international, new RTD/pre-workout), but domestic channels remain mixed; Premier Protein powders gaining distribution and velocity, including club .
  • Trading implications: Q3 margin/volume headwinds could present a near-term overhang; Q4 promotions/consumption resilience and affirmed FY25 guide are likely re-acceleration catalysts; focus on retailer inventory normalization, input cost trends, and tariff developments .