BellRing Brands Reports Results for the Third Quarter 2025; Narrows Fiscal Year 2025 Outlook

Core Insights - BellRing Brands, Inc. reported strong third-quarter performance with net sales of $547.5 million, reflecting a 6.2% increase year-over-year, driven by a 3.5% increase in volume and a 2.7% increase in price/mix [4][5] - The company achieved record levels of household penetration and distribution, maintaining industry-leading loyalty metrics, particularly for its Premier Protein brand [3][5] - Adjusted EBITDA for the third quarter was $120.3 million, a slight increase of 0.7% compared to the previous year [14] Financial Performance - Net sales for the third quarter reached $547.5 million, up from $515.4 million in the prior year [37] - Gross profit was $193.6 million, representing 35.4% of net sales, an increase from 36.8% in the prior year [7][37] - Operating profit decreased significantly to $44.8 million, down 59.9% from $111.6 million in the prior year, primarily due to a $68.1 million provision for legal matters [11][37] Segment Performance - Premier Protein net sales increased by 6.0%, driven by a 3.5% volume growth and a 2.5% increase in price/mix [5] - Dymatize net sales grew by 5.4%, supported by a 5.1% increase in volume, attributed to higher international sales and new product introductions [6] Legal Matters - The company reached a settlement in principle for $90 million related to Joint Juice litigation, which is subject to judicial approval [24] Share Repurchase Activity - In the third quarter, BellRing repurchased 1.3 million shares for $83 million at an average price of $65.07 per share, with a total of 3.8 million shares repurchased for $265.6 million in the nine months ended June 30, 2025 [25] Outlook - The fiscal year 2025 net sales outlook has been narrowed to a range of $2.28 billion to $2.32 billion, with Adjusted EBITDA expected to be between $480 million and $490 million, indicating growth of 14%-16% and 9%-11% respectively over fiscal year 2024 [26]