NATIONAL BEVERAGE CORP (FIZZ)·Q2 2025 Earnings Summary

Executive Summary

• Q2 FY2025 EPS was $0.49 on net sales of $291.2M, up vs. $0.47 on $300.1M in the prior-year quarter, with gross margin expanding to 38% despite a 3% YoY sales decline . Sequentially, revenue fell from Q1’s $329.5M as summer volumes cooled, but margins remained resilient .
• Management cited August–September volume shortfalls tied to consumer pressures and severe Southeastern U.S. storms that caused supply chain disruption and multi-day retail closures; volumes improved in October and consumer confidence ticked up, supporting near-term optimism .
• Operating margins improved for the 8th consecutive quarter and operating profit per case rose 12%, reflecting tight cost control and pricing/mix discipline .
• Innovation and marketing remain core: LaCroix Strawberry Peach drew strong early demand (targeting nationwide availability by year-end) and in-store merchandising/sampling and digital/influencer programs were expanded . Prior quarters also highlighted momentum from Mojito (LaCroix), Rip It energy, and Shasta Zero Sugar .

What Went Well and What Went Wrong

• What Went Well

  • Margin resilience: Q2 gross margin rose to 38% and operating margins improved for the 8th straight quarter; operating profit per case +12% YoY, underscoring effective cost and mix management .
  • Product/brand innovation: LaCroix Strawberry Peach launched to “exceptionally positive” consumer response, with nationwide rollout targeted by year-end; innovation pipeline continues .
  • Cost discipline: Q2 shipping and handling costs fell to $18.4M from $19.7M and marketing costs to $11.6M from $13.3M YoY, supporting profitability despite softer sales .

• What Went Wrong

  • Top-line softness: Q2 net sales declined 3% YoY to $291.2M due to volume shortfalls in August/September amid consumer spending pressure .
  • Weather disruption: Record storms in the Southeast caused supply-chain issues and multi-day store closures at customers, temporarily impacting volumes .
  • Sequential deceleration: Net sales stepped down from Q1’s $329.5M as peak summer seasonality abated and macro headwinds persisted, though margin trends remained favorable .

Financial Results

Notes:

• Gross Margin % for Q2 FY2024 is calculated from reported net sales and gross profit .
• Company reports as a single operating segment; no segment revenue breakdown provided .

Actual vs. Estimates (Q2 FY2025)

• Revenue: $291.2M (Actual) ; Consensus: N/A (S&P Global data unavailable this run)
• Diluted EPS: $0.49 (Actual) ; Consensus: N/A (S&P Global data unavailable this run)

KPIs and cost levers

Guidance Changes

Management provided no quantitative guidance in Q2 materials; dividend noted above for context .

Earnings Call Themes & Trends

Note: No earnings call transcript was available; themes reflect press releases and 10-Q narrative.

Management Commentary

• “We are pleased to report increased earnings and margin improvements in a challenging period… Second quarter net sales declined 3% due to volume shortfalls in August and September. We are, however, optimistic… due to increased volume for October as well as the recent improvement in consumer confidence.”
• “Record-setting storms… resulted in supply-chain disruptions and numerous multi-day store closures by our customers.”
• “Second quarter operating margins improved for the 8th consecutive quarter and operating profit per case increased 12%.”
• “LaCroix’s newest product, Strawberry Peach… received an exceptionally positive consumer response… anticipate it will be available nationwide by the end of the year… additional LaCroix creations… scheduled to be released soon.”
• “We have expanded our in-store merchandising teams… increased our staff of in-store sampling ambassadors… marketing… includes social media, consumer events, influencers, digital marketing and professional sports teams and podcast sponsorships.”

Q&A Highlights

• No earnings call transcript was found for Q2 FY2025; no Q&A themes to report from a call [ListDocuments showed 0 earnings-call-transcript for FIZZ].

Estimates Context

• Wall Street consensus (S&P Global) for Q2 FY2025 could not be retrieved in this session. As a result, we cannot quantify beat/miss versus S&P Global consensus for revenue and EPS. S&P Global data was unavailable at query time.

Key Takeaways for Investors

• Margin story intact: Q2 gross margin reached ~38% and operating margin improved for the eighth straight quarter, with operating profit per case +12%—a bullish signal that cost/mix control is offsetting top-line softness .
• Transient headwinds: Net sales fell 3% YoY to $291.2M, pressured by August/September volume shortfalls and severe weather disruptions; management cited improved October volumes and better consumer confidence into period-end as a stabilizer .
• Sequential moderation: After a record Q1 ($329.5M), revenue normalized in Q2; the resilience of EPS ($0.49) highlights favorable unit economics despite macro pressures .
• Cost discipline levers: Shipping ($18.4M) and marketing ($11.6M) were down YoY in Q2, supporting profitability while marketing capabilities (in-store, sampling, digital) were expanded to drive demand .
• Innovation as catalyst: Strong reception to LaCroix Strawberry Peach and a continued flavor pipeline can support volume recapture and shelf momentum near-term .
• Balance sheet context: Cash stood at $112.8M at Q2-end after the $304.1M special dividend in July; liquidity remains adequate and management reiterates confidence in long-term performance .
• Watch list: Pace of volume recovery post-October, elasticity to promotional activity, weather risks, and continued margin expansion trajectory absent formal guidance .

Citations

• Q2 FY2025 press release and 8-K:
• Q2 FY2025 10-Q (financial statements, costs, segment disclosure):
• Q1 FY2025 press release and 10-Q:
• Q4 FY2024 press release and 8-K: