BellRing Brands(BRBR) - 2025 Q4 - Annual Results

Financial Performance - Fourth quarter net sales reached $648.2 million, an increase of 16.6% year-over-year, driven by a 19.2% increase in volume[7] - Fiscal year 2025 net sales totaled $2,316.6 million, up 16.1% year-over-year, with a 14.7% increase in volume[17] - The company expects fiscal year 2026 net sales to range between $2.41 billion and $2.49 billion, representing a growth of 4% to 8%[28] - BellRing's net sales for the three months ended September 30, 2025, were $648.2 million, a 16.6% increase from $555.8 million in the same period of 2024[40] - For the twelve months ended September 30, 2025, net sales reached $2,316.6 million, up 16.1% from $1,996.2 million in 2024[40] Adjusted EBITDA and Profitability - Adjusted EBITDA for the fourth quarter was $117.4 million, a slight increase of 0.8% compared to the prior year[16] - Fiscal year 2026 Adjusted EBITDA is projected to be between $425 million and $455 million, with an Adjusted EBITDA margin of approximately 18%[28] - Adjusted EBITDA as a percentage of net sales is projected to be between 18% to 20% for fiscal year 2026[34] - Adjusted EBITDA for the three months ended September 30, 2025, was $117.4 million, compared to $116.5 million for the same period in 2024, reflecting a slight increase[57] Earnings and Profit Margins - The company reported a net earnings of $59.6 million for the three months ended September 30, 2025, compared to $71.7 million in the same period of 2024, reflecting a decrease of 16.5%[40] - BellRing's gross profit for the three months ended September 30, 2025, was $187.4 million, down from $205.1 million in the same period of 2024[40] - Adjusted Gross Profit as a percentage of Net Sales for the three months ended September 30, 2025, was 29.7%, compared to 35.9% in 2024, showing a decline in profitability margin[51] - Net Earnings for the three months ended September 30, 2025, were $59.6 million, down from $71.7 million in 2024, representing a decrease of about 16.5%[53] - Adjusted Net Earnings for the twelve months ended September 30, 2025, were $279.1 million, compared to $255.5 million in 2024, reflecting an increase of approximately 9.2%[53] Expenses and Share Repurchase - SG&A expenses for fiscal year 2025 were $396.0 million, or 17.1% of net sales, reflecting an increase due to higher marketing and legal provisions[20] - The company repurchased 9.0 million shares for $472.5 million during fiscal year 2025, with an average price of $52.62 per share[26] - Interest expense, net for the three months ended September 30, 2025, was $19.1 million, compared to $14.5 million in 2024, reflecting an increase of approximately 31.7%[57] Assets and Debt - Total assets increased to $941.0 million as of September 30, 2025, compared to $837.0 million in 2024[42] - BellRing's long-term debt rose to $1,084.3 million as of September 30, 2025, compared to $833.1 million in 2024[42] Future Outlook - The long-term financial algorithm has been updated to reflect attractive revenue growth and increased brand investment for 2026[5] - The company aims for annual net sales growth of 7% to 9%[34] - The company has a strong reliance on sales from its ready-to-drink (RTD) protein shakes, which poses a risk to its market position[36]