BellRing Brands(US:BRBR)2025-11-18 17:16Financial Performance - Net sales increased by $320.4 million, or 16%, to $2,316.6 million for the year ended September 30, 2025, compared to $1,996.2 million in 2024[232] - Operating profit decreased by $30.3 million, or 8%, to $357.4 million in 2025, primarily due to a $69.0 million provision for legal matters and higher product costs[234] - Sales of Premier Protein products rose by $286.3 million, or 17%, driven by a 15% increase in volumes due to distribution gains[233] - Cash provided by operating activities increased by $61.0 million to $260.6 million in 2025, driven by improved timing of collections and reduced tax payments[249] Debt and Financing - Interest expense increased by $10.1 million, or 17%, to $68.4 million in 2025, attributed to higher borrowings under the Revolving Credit Facility[235] - The company had $247.6 million of available borrowing capacity under the Revolving Credit Facility as of September 30, 2025[242] - Cash used in financing activities increased by $63.2 million to $238.3 million in 2025, driven by higher stock repurchase payments and repayments under the Revolving Credit Facility[251] - The company had outstanding principal value indebtedness of $840.0 million related to its 7.00% Senior Notes as of September 30, 2025[270] - The company incurred an aggregate principal amount of $250.0 million under its Revolving Credit Facility as of September 30, 2025, with a variable interest rate of 6.14%[270] Tax and Compliance - The effective income tax rate remained stable at 25.2% for both fiscal 2025 and 2024[237] - The company maintained compliance with a financial covenant requiring a total net leverage ratio not to exceed 6.00:1.00 as of September 30, 2025[253] Market and Commodity Risks - A hypothetical 10% adverse change in the market price of non-fat dry milk would have changed the fair value of the company's commodity-related derivatives portfolio by approximately $1 million as of September 30, 2025[268] - The company is exposed to commodity price risks and may use futures contracts and options to manage these exposures[267] - The company manages cost increases by locking in prices through purchase commitments and may attempt to raise prices to customers[257] - The company is exposed to foreign currency transaction risk due to sales in Canadian Dollars, but this is not expected to significantly impact future earnings[269] Share Repurchase and Commitments - The company repurchased 9.0 million shares at an average price of $52.62 per share, totaling $476.6 million in 2025[243] - Total purchase commitments amounted to $1,362.9 million as of September 30, 2025, with $602.7 million due in fiscal 2026[252] Fair Value and Interest Rate Sensitivity - The fair value of the company's debt, excluding borrowings under its Revolving Credit Facility, was $869.0 million as of September 30, 2025[271] - A hypothetical 10% change in interest rates would have changed the fair value of the fixed rate debt by approximately $5 million as of September 30, 2025[271] Exchange Rate Impact - The exchange rates positively affected net sales by less than 1% during the year ended September 30, 2025[259]