Financial Data and Key Metrics Changes - For fiscal year 2025, the company reported a net sales growth of 16% and an adjusted EBITDA margin of 20.8% [4][18] - Adjusted EBITDA for the year was $482 million, with cash flow from operations amounting to $261 million [17][18] - The company repurchased approximately 7% of its outstanding shares, totaling 9 million shares for $473 million [17][18] Business Line Data and Key Metrics Changes - The ready-to-drink (RTD) shake category grew by 15%, with Premier shake consumption increasing by 20% due to promotional events [4][18] - Premier Protein's net sales grew by 15%, while Dymatize's net sales surged by 33%, driven by strong volumes [18][19] - Adjusted gross profit margin decreased by 620 basis points to 29.7%, attributed to input cost inflation and increased promotional activity [19][20] Market Data and Key Metrics Changes - The RTD shake category has doubled in retail sales since 2019, reaching $8.7 billion, with Premier Protein holding approximately 50% market share [5][6] - Household penetration for RTD shakes is at 54%, indicating significant growth potential compared to mature CPG categories [5][6] - The competitive landscape includes insurgent brands and declining legacy brands, with the latter losing market share [6][9] Company Strategy and Development Direction - The company aims to maintain long-term revenue growth of 7-9%, adjusting from previous projections of low double digits due to increased competition [9][10] - Strategic priorities for 2026 include expanding distribution, increasing advertising investment, and launching innovative products [12][14] - The company plans to enhance its marketing efforts and strengthen retailer partnerships to capture market share [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the category's momentum and Premier's leading position despite a more competitive environment [31][32] - The first quarter of 2026 is expected to be softer, but growth is anticipated to strengthen in subsequent quarters [10][11] - Management highlighted the importance of innovation and advertising in driving future growth [14][16] Other Important Information - The company is focusing on cost-saving initiatives to bolster margins, particularly in light of commodity inflation and tariffs [22][23] - The adjusted EBITDA margin is expected to be under pressure in the first half of 2026 due to significant input cost inflation and increased advertising [27][29] Q&A Session Summary Question: Changes in the competitive landscape and its influence on 2026 plans - Management noted that while competition has increased, the category's momentum remains strong, with Premier maintaining its leading position [31][32] Question: Insights on repeat rates for new entrants in the category - Management indicated that they are monitoring repeat rates and expect some insurgent brands to struggle, while Premier's repeat rates are strengthening [36][37] Question: Growth expectations in the club channel - Management expects growth to primarily come from outside the club channel, with improvements anticipated as comparisons ease [38][39] Question: Consumption trends and innovation contributions - Management expects consumption to accelerate in the latter half of December and into 2026, driven by advertising and innovation [40][41] Question: EBITDA margin pressures and cost savings - Management highlighted that the EBITDA margin is expected to decline due to tariffs and inflation, but cost-saving initiatives are anticipated to support margins in the second half of the year [48][49]