BellRing Brands Reports Results for the Fourth Quarter and Fiscal Year 2025; Provides Fiscal Year 2026 Outlook and Updates Long-Term Financial Algorithm

Core Insights - BellRing Brands, Inc. reported strong financial results for the fourth fiscal quarter and fiscal year ended September 30, 2025, with a 16% increase in sales driven by household penetration, distribution gains, and innovation performance [5][9][20]. Financial Performance - Fourth quarter net sales reached $648.2 million, up 16.6% year-over-year, with a 19.2% increase in volume and a 2.6% decrease in price/mix [9][11]. - Fiscal year net sales totaled $2,316.6 million, reflecting a 16.1% increase year-over-year, supported by a 14.7% increase in volume and a 1.4% increase in price/mix [20]. - Adjusted EBITDA for the fourth quarter was $117.4 million, a slight increase of 0.8% compared to the previous year [19]. - Fiscal year adjusted EBITDA was $481.6 million, up 9.4% from the prior year [27]. Outlook for Fiscal Year 2026 - The company expects net sales for fiscal year 2026 to range between $2.41 billion and $2.49 billion, with adjusted EBITDA projected between $425 million and $455 million [3][30]. - The first quarter of 2026 is anticipated to see a decline in net sales of approximately 5% compared to the prior year, attributed to tough comparisons and one-time factors [29]. Long-Term Financial Strategy - BellRing updated its long-term financial algorithm, emphasizing attractive revenue growth and increased brand investment, innovation, and multi-channel execution [6][32]. - The company aims for annual net sales growth of 7% to 9% and adjusted EBITDA as a percentage of net sales to be between 18% and 20% [10][36]. Consumption Trends - In the fourth quarter, dollar consumption of Premier Protein ready-to-drink shakes increased by 20.4%, while Premier Protein powder products saw a 16.9% increase [7]. - Dymatize products experienced a 32.9% increase in net sales, driven by strong volume growth [13]. Share Repurchase Activity - During the fourth quarter of 2025, BellRing repurchased 5.2 million shares for $206.9 million at an average price of $40.04 per share, totaling 9.0 million shares repurchased for $472.5 million throughout fiscal year 2025 [28].