BellRing Brands(BRBR) - 2026 Q1 - Quarterly Results

Financial Performance - Net sales for the first quarter of fiscal year 2026 were $537.3 million, an increase of 0.8% year-over-year, driven by a 0.7% increase in volume and a 0.1% increase in price/mix [5]. - Premier Protein net sales decreased by 1.2%, with a 1.0% decrease in price/mix and a 0.2% decrease in volume, while Dymatize net sales increased by 15.8% due to strong volume growth, particularly in the international channel [6]. - Gross profit was $160.8 million, or 29.9% of net sales, a decrease from $199.6 million, or 37.5% of net sales, in the prior year period, impacted by significant input cost inflation [7]. - Adjusted EBITDA for the first quarter was $90.3 million, a decrease of $35.0 million compared to $125.3 million in the prior year period [12]. - Net earnings for the first quarter were $43.7 million, a decrease of $33.2 million compared to $76.9 million in the prior year period, with diluted earnings per share at $0.36 [11]. - Operating profit fell to $78.5 million in Q1 2025, compared to $115.3 million in Q1 2024, indicating a decline of 31.9% [26]. - Net earnings for the three months ended December 31, 2025, were $43.7 million, down from $76.9 million in the same period of 2024, a decrease of 43.3% [26]. - Adjusted net earnings for Q1 2025 were $44.7 million, compared to $76.2 million in Q1 2024, reflecting a decline of 41.6% [40]. - Diluted earnings per common share decreased to $0.36 in Q1 2025 from $0.59 in Q1 2024, a drop of 38.7% [42]. Outlook - The company has narrowed its fiscal year 2026 net sales outlook to $2.41-$2.46 billion, expecting a growth rate of 4% to 6% [15]. - Adjusted EBITDA outlook for fiscal year 2026 is set at $425-$440 million, approximately 18% of net sales [15]. Expenses and Costs - Selling, general and administrative expenses were $78.0 million, or 14.5% of net sales, a decrease from $80.1 million, or 15.0% of net sales, in the prior year period [8]. - Interest expense increased to $20.0 million in the first quarter of 2026 from $14.4 million in the prior year, primarily due to higher outstanding borrowings [10]. - Income tax expense decreased to $14.8 million in Q4 2025 from $24.0 million in Q4 2024 [44]. - Stock-based compensation decreased to $5.6 million in Q4 2025 from $6.3 million in Q4 2024 [44]. - Office relocation costs were $0.9 million in Q4 2025, with no such costs reported in Q4 2024 [44]. - Separation costs were $0.4 million in Q4 2025, with no such costs reported in Q4 2024 [44]. Assets and Liabilities - Total assets increased to $1,060.3 million as of December 31, 2025, up from $941.0 million as of September 30, 2025, representing a growth of 12.7% [28]. - Long-term debt rose to $1,184.6 million as of December 31, 2025, compared to $1,084.3 million as of September 30, 2025, an increase of 9.2% [28]. - Cash and cash equivalents decreased to $64.1 million as of December 31, 2025, down from $71.8 million as of September 30, 2025, a decline of 24.1% [28]. - The company reported a net decrease in cash, cash equivalents, and restricted cash of $12.1 million for the three months ended December 31, 2025, compared to a decrease of $21.5 million in the same period of 2024 [29]. Market Performance - Net sales for the three months ended December 31, 2025, were $537.3 million, a slight increase from $532.9 million in the same period of 2024, representing a growth of 0.8% [26]. - Gross profit decreased to $160.8 million in Q1 2025 from $199.6 million in Q1 2024, reflecting a gross profit margin of 29.9%, down from 37.5% [26][37]. - Net Earnings as a percentage of Net Sales decreased to 8.1% in Q4 2025 from 14.4% in Q4 2024 [44]. - Adjusted EBITDA as a percentage of Net Sales decreased to 16.8% in Q4 2025 from 23.5% in Q4 2024 [44]. - Interest expense increased to $20.0 million in Q4 2025 from $14.4 million in Q4 2024 [44]. - Mark-to-market adjustments on commodity hedges showed no impact in Q4 2025, compared to a loss of $1.5 million in Q4 2024 [44].