Financial Data and Key Metrics Changes - Total net sales for the quarter were $537 million, up 1% year-over-year, with Adjusted EBITDA of $90 million at a margin of 16.8% [19][20] - Premier Protein net sales decreased by 1%, while Dymatize net sales increased by 16% due to strong international growth [19][20] - Adjusted EBITDA guidance was updated to $425 million-$440 million, reflecting a slight mix shift towards the lower-margin Dymatize business and increased whey costs [21][23] Business Line Data and Key Metrics Changes - Premier RTD shake consumption was down 2% in the quarter, while Dymatize experienced a 16% increase in sales [19][20] - Premier shake volumes were flat, with price mix and unfavorable factors contributing to a 2% decline [19][20] - The wellness category grew 7% in Q1, with RTD shakes also up 7%, driven primarily by volume [9] Market Data and Key Metrics Changes - The RTD shake category is expected to grow in the high single digits for 2026, driven by volume and increased marketing spend [7][9] - The U.S. category size increased to $24 billion from $21 billion due to a change in category definition from convenient nutrition to wellness [8][9] - Retailers are increasing category space and testing higher traffic aisle locations to capture growing consumer demand [7] Company Strategy and Development Direction - The company is focused on growing distribution, increasing brand investments, and launching innovation, which are expected to positively impact consumption [6][10] - A new advertising campaign, "Go Get 'Em," aims to drive household penetration and strengthen emotional connections with consumers [12][13] - The company plans to launch new shake lines targeting different protein levels and consumer experiences in the second half of the year [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the category's growth and the strength of their brands, despite increased promotional activity from insurgent brands [16][17] - The company anticipates an acceleration in growth in the second half of the year, supported by distribution gains and innovation [22][24] - Management acknowledged the challenges posed by input cost inflation and tariffs but remains optimistic about long-term value creation for shareholders [21][23] Other Important Information - A leadership transition plan was announced, with the current CEO set to retire by the end of the fiscal year on September 30, 2026 [16][17] - The company is committed to returning cash to shareholders through share repurchases, with $97 million repurchased in the first quarter [21] Q&A Session Questions and Answers Question: What results are being seen from the mass merchandiser test? - The program is performing well, with record weekly sales and plans to expand to other retailers based on positive results [29][31] Question: Can you elaborate on the consumption trends for Premier Protein? - Consumption was slightly below expectations due to timing delays and increased promotional activity from competitors, but there is strong momentum with a 6% increase in January across all channels [36][37] Question: What are the assumptions for the second half of the year? - The company expects consumption to improve in Q2 and further in H2, driven by distribution, advertising, and innovation initiatives [45][46] Question: Are there any updates on the competitive landscape with insurgent brands? - The company is observing a shakeout among insurgent brands, with some not making it in the club channel due to high thresholds [54][55] Question: How is Dymatize performing in international markets? - Dymatize has been performing well internationally, with strong growth in various markets, and the brand resonates well with consumers [63][65] Question: Has the change in category definition affected M&A priorities? - The change reflects evolving consumer preferences, and the company is continuously looking for organic and inorganic growth opportunities [69]