Summary of BellRing Brands Conference Call Company Overview - **Company**: BellRing Brands - **Industry**: Convenient Nutrition - **Key Brands**: Premier Protein, Dymatize - **Fiscal 2025 Revenue**: $2.3 billion, with Premier Protein accounting for approximately 85% of sales [3][4] Core Differentiators 1. **Category Growth**: The convenient nutrition category is experiencing high growth with low household penetration, presenting significant opportunities. The category is currently at about 50% household penetration for ready-to-drink (RTD) products, while Premier Protein has around 20% [4][5]. 2. **Brand Leadership**: Premier Protein is the number one brand in the category, leading in household penetration, repeat purchases, and brand loyalty [4][5]. 3. **Financial Performance**: Since its IPO in 2019, BellRing has achieved top-line growth of 18% and bottom-line growth of 16% [4][5]. 4. **Asset-Light Model**: The company generates substantial cash flow, allowing for reinvestment in the business, share buybacks, and potential M&A opportunities [5][6]. Market Trends and Growth Drivers - **Category Trends**: The RTD shakes category grew in the mid-teens but is expected to slow to high single-digit growth due to the large base numbers. The overall category has doubled in size since the company went public [6][8]. - **Household Penetration Goals**: The company aims to increase household penetration in the RTD protein market to levels similar to the energy drink category, which is around 70%-75% [10][11]. - **Competition**: Increased competition in the club channel is acknowledged, but BellRing maintains confidence in its market leadership due to strong brand loyalty and consumer preference [12][15]. Strategic Initiatives 1. **Club Channel Focus**: The club channel remains a priority, with plans to improve product assortment and increase merchandising and sampling efforts [15][17]. 2. **Advertising and Marketing**: A new advertising campaign is being launched, with increased spending to enhance brand visibility and consumer engagement [29][30]. 3. **Distribution Expansion**: The company is actively pursuing expanded distribution opportunities, particularly in grocery and convenience channels [39][41]. 4. **Innovation Pipeline**: BellRing is focusing on product innovation to capture incremental occasions and meet evolving consumer preferences [35][36]. Financial Outlook - **EBITDA Margin Guidance**: The company anticipates a 280 basis point compression in EBITDA margins due to inflation and promotional investments, with expectations of recovery in the second half of the fiscal year [45][46]. - **Long-Term Margin Target**: The long-term EBITDA margin target remains at 18%-20%, supported by cost-saving initiatives and normalization of input costs [49][50]. Capital Allocation Strategy - **Priorities**: The company prioritizes share buybacks and organic growth investments, with M&A considered a longer-term opportunity [54][56]. - **Cost Savings Initiatives**: Focus on supply chain efficiencies and cost reductions across various operational areas [51][52]. Competitive Advantages - **Brand Equity**: The Premier Protein brand is recognized for its strong consumer loyalty and market presence, which is seen as a significant competitive advantage [60][62]. - **Scalability**: The company has built a national supply chain and a robust sales organization, positioning it well for future growth [64][65]. Conclusion BellRing Brands is well-positioned in the convenient nutrition market, with strong brand equity, significant growth opportunities, and a strategic focus on expanding its market presence while managing costs and enhancing profitability.

Core Viewpoint - BellRing Brands, Inc. will participate in the Morgan Stanley Global Consumer & Retail Conference on December 2-3, 2025, indicating its active engagement with investors and the market [1]. Company Overview - BellRing Brands, Inc. is a fast-growing consumer brands business focused on the convenient nutrition category, with brands such as Premier Protein and Dymatize [3]. - Premier Protein is recognized as the 1 ready-to-drink protein and convenient nutrition brand, while Dymatize is known for its 1 hydrolyzed protein powder [3]. - The company operates with a mission to change lives through good energy and emphasizes the importance of nutrition for a healthy world [3]. - BellRing's products are distributed in over 90 countries across various channels including club, mass, food, eCommerce, specialty, drug, and convenience [3]. Event Participation - The company will hold a fireside chat with investors at approximately 2:15 p.m. Eastern Time on December 2, 2025, as part of the conference [1]. - Interested parties can access the webcast of the fireside chat through the Investor Relations section of BellRing's website, with a replay available for a limited time [2].

Core Insights - BellRing Brands, Inc. has appointed David Finkelstein to its Board of Directors and Audit Committee, effective January 1, 2026, increasing the Board's membership to eight [1] Company Overview - BellRing Brands, Inc. operates in the global convenient nutrition category, focusing on brands like Premier Protein and Dymatize, which are leaders in ready-to-drink protein and hydrolyzed protein powder respectively [4] - The company emphasizes a culture-driven approach and aims to produce products with best-in-class nutritional profiles, distributed in over 90 countries across various retail channels [4] Leadership Experience - David Finkelstein brings over twenty years of experience in leadership roles within the financial industry, with a strong background in finance, financial reporting, mergers and acquisitions, and capital markets transactions [2] - His previous roles include heading Consumer and Retail M&A and Sports Advisory at Citigroup from 2018 to 2025, and various positions in the Mergers and Acquisitions Group at Bank of America from 2005 to 2018 [3]

Company Overview - BellRing Brands, Inc. (NYSE: BRBR) is a fast-growing consumer brands business focused on the convenient nutrition category, with brands such as Premier Protein and Dymatize [3] - The company aims to change lives with good energy and believes nutrition is essential for a healthy world, producing products with top nutritional profiles and flavors [3] - BellRing's products are distributed in over 90 countries across various channels including club, mass, food, eCommerce, specialty, drug, and convenience [3] Upcoming Financial Events - BellRing Brands will hold a conference call on August 5, 2025, at 9:00 a.m. EDT to discuss its financial results for the third quarter of fiscal year 2025 and provide an outlook for the fiscal year [1] - The financial results for the third quarter will be released after market close on August 4, 2025 [1] - The call will feature participation from Darcy H. Davenport, President and CEO, and Paul A. Rode, CFO [1]

Financial Data and Key Metrics Changes - The company reported net sales of $588 million, representing a 19% increase year-over-year, while adjusted EBITDA grew 14% to $119 million, with adjusted EBITDA margins at 20.2% [19][20][21] - The fiscal year 2025 outlook for net sales growth is affirmed at 13% to 17% over fiscal year 2024, with adjusted EBITDA growth expected at 7% to 14% [7][23] Business Line Data and Key Metrics Changes - Premier Protein net sales increased by 22%, driven by strong volume growth in ready-to-drink (RTD) shakes and powders [19][20] - Dymatize's net sales grew 3%, supported by brand investments and new products, with international business showing double-digit growth [15][19] Market Data and Key Metrics Changes - The convenient nutrition category grew 12% in Q2, with RTD growth leading at 19% [8][30] - Premier Protein achieved all-time highs in household penetration, reaching nearly 21% [10][11] Company Strategy and Development Direction - The company is focusing on expanding its promotional activities and distribution, particularly for the new indulgence line, which targets incremental consumption occasions [14][17] - The management is optimistic about the long-term growth potential in the protein category, emphasizing the importance of innovation and consumer engagement [17][19] Management's Comments on Operating Environment and Future Outlook - Management noted that despite weakening consumer sentiment, the fundamentals of the protein category remain strong, with expectations for continued growth [7][30] - The company is cautious in its guidance due to uncertainties in the consumer environment but remains confident in its growth potential [61][90] Other Important Information - The company generated $48 million in cash flow from operations in Q2, with net debt at $932 million and net leverage at 1.9 times [22][23] - The company plans to continue monitoring potential tariff impacts on input costs, particularly related to dairy protein sourced from New Zealand and the EU [26][49] Q&A Session Summary Question: What are the expectations for category growth in the back half of the year? - Management indicated that the fundamentals remain strong, with expectations for continued growth in the RTD category despite broader consumer challenges [30] Question: What is driving the change in retailer inventories? - Management explained that the destocking is primarily a one-time adjustment by retailers who previously over-ordered, and consumption remains strong [36][42] Question: How are tariffs expected to impact input costs? - Management stated that dairy inputs constitute about 30% to 40% of total costs, with potential minor impacts from tariffs expected to start in fiscal year 2026 [47][49] Question: What is the outlook for marketing and advertising spending? - Management confirmed that the increased marketing spend aligns with expectations and is focused on driving consumption growth [52][54] Question: How does the company view competition in the protein shake market? - Management believes that while competitors are increasing protein levels, the focus remains on taste and nutritional balance, with opportunities for innovation [66][68] Question: What is the strategy behind the fourth-quarter promotions? - Management views the expanded promotions as a strategic move to enhance household penetration and drive consumer engagement, supported by inventory levels [116]

Financial Data and Key Metrics Changes - The company reported net sales of $588 million, a 19% increase year-over-year, and adjusted EBITDA of $119 million, which is a 14% increase [21][22] - Adjusted EBITDA margins were 20.2%, in line with expectations, and adjusted gross profit margin increased by 80 basis points to 34.5% [22][24] - The company affirmed its fiscal 2025 guidance for net sales between $2.26 billion and $2.34 billion, indicating a growth of 13% to 17% [25][26] Business Line Data and Key Metrics Changes - Premier Protein net sales grew by 22%, driven by strong volume growth in ready-to-drink (RTD) shakes and powders [21][22] - Dymatize's net sales increased by 3%, supported by a 20% rise in volume, with double-digit growth in international markets [16][21] Market Data and Key Metrics Changes - The convenient nutrition category grew by 12% in Q2, with RTD growth at 19%, indicating strong consumer demand [7][8] - Premier Protein achieved all-time highs in household penetration, reaching nearly 21% [11] Company Strategy and Development Direction - The company plans to expand promotions in Q4, leveraging strong brand metrics and inventory levels to drive household penetration [12][18] - The focus remains on innovation, with new product lines like the indulgent shakes targeting incremental consumption occasions [15][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the protein category, citing strong macro tailwinds [18] - Despite a weakening consumer sentiment, the company does not anticipate significant impacts on its category, modeling various scenarios for growth [32][58] Other Important Information - The company generated $48 million in cash flow from operations in Q2, with net debt at $932 million and net leverage at 1.9 times [24][25] - Increased advertising and promotion expenses were noted, with A&P spending at 4.7% of net sales, up from 3.1% in the previous year [23][24] Q&A Session Summary Question: Expectations for category growth in the second half given weakening consumer environment - Management noted that category fundamentals remain strong, with RTD category growth expected to continue despite broader consumer sentiment challenges [31] Question: Insights on retailer inventory changes - Management indicated that the inventory adjustments are primarily a one-time reset related to previous over-ordering by retailers, not a reflection of consumption decline [36][42] Question: Impact of tariffs on input costs - Dairy inputs constitute about 30% to 40% of total COGS, with potential tariff impacts expected to be minor and manageable [48] Question: Marketing and advertising spending levels - The second quarter's marketing spend was in line with expectations, with a slight reallocation towards promotions anticipated for the second half of the year [54] Question: Competitive landscape and protein content trends - Management believes that while some competitors are increasing protein levels, the focus will remain on a balanced approach that includes taste and nutritional value [66][69] Question: Future innovation plans - Upcoming innovations will target new consumer segments and occasions, with the indulgent line already showing promising results in attracting new customers [111][113]

Financial Data and Key Metrics Changes - The company reported net sales of $588 million, representing a 19% increase year-over-year, and adjusted EBITDA of $119 million, which is a 14% increase [20][21] - Adjusted EBITDA margins were 20.2%, in line with expectations, and adjusted gross profit margin increased by 80 basis points to 34.5% [21][22] - Cash flow from operations was $48 million for the second quarter, with a total of $51 million for the first half of the fiscal year [23] Business Line Data and Key Metrics Changes - Premier Protein net sales grew by 22%, driven by strong volume growth in ready-to-drink (RTD) shakes and powders [20] - Dymatize's net sales increased by 3%, supported by a 20% rise in volume, with double-digit growth in international markets [16][20] Market Data and Key Metrics Changes - The convenient nutrition category grew by 12% in Q2, with RTD growth at 19%, indicating strong consumer demand [8][9] - Premier Protein achieved an all-time high in household penetration, reaching nearly 21% [11] Company Strategy and Development Direction - The company plans to expand promotions in Q4, leveraging strong brand metrics and inventory levels to drive household penetration [12][121] - The innovation pipeline remains robust, with new products aimed at capturing new consumer occasions and expanding market share [15][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the protein category, citing strong macro tailwinds [18] - The company is cautious about consumer uncertainty but remains optimistic about its growth trajectory [60][62] Other Important Information - The company is actively monitoring potential tariff impacts on input costs, particularly related to dairy protein sourced from New Zealand and the EU [27][50] - Marketing and advertising expenses increased to 4.7% of net sales, driven by a national advertising campaign and support for new product launches [22][54] Q&A Session Summary Question: What are the expectations for category growth in the second half given the weakening consumer environment? - Management indicated that category fundamentals remain strong, with expectations for continued growth despite consumer uncertainty [31][32] Question: What is driving the change in retailer inventories? - Management noted that the inventory adjustments are primarily a one-time response to previous supply constraints, with no significant changes in consumption [37][39] Question: How are tariffs expected to impact input costs? - Management clarified that dairy inputs constitute about 30% to 40% of total costs, with potential minor impacts from tariffs expected to start in fiscal 2026 [48][50] Question: What is the outlook for marketing spend? - Management confirmed that the increased marketing spend aligns with expectations and is focused on driving brand awareness and consumer engagement [54][56] Question: How does the company view competition in the protein shake market? - Management believes that while competitors are increasing protein levels, the company's focus on taste and nutritional balance will continue to resonate with consumers [68][70]

Group 1 - BellRing Brands, Inc. will hold a conference call on May 6, 2025, at 9:00 a.m. EDT to discuss its financial results for Q2 of fiscal year 2025 and provide an outlook for the fiscal year 2025 [1] - The financial results for Q2 will be released after market close on May 5, 2025 [1] - The call will feature Darcy H. Davenport, President and CEO, and Paul A. Rode, CFO, who will respond to questions during the call [1] Group 2 - BellRing Brands, Inc. is focused on the convenient nutrition category, with brands such as Premier Protein and Dymatize, which are leaders in their respective segments [3] - The company emphasizes a culture-driven approach and believes that nutrition is essential for a healthy world, producing products with high nutritional profiles and exceptional flavors [3] - BellRing's products are distributed in over 90 countries across various channels, including club, mass, food, eCommerce, specialty, drug, and convenience [3]