BellRing Brands Earnings: Strong Q2 Results and Affirmed 2025 Outlook Amid Robust Protein Demand
- Hardik Shah
- 2 days ago
- 3 min read
TL;DR
Premier Protein momentum continues: RTD shake consumption soared 25%, driving record household penetration and market share.
Robust financial performance: Net sales grew 18.9% to $588M and Adjusted EBITDA increased 14.4% to $118.6M.
Guidance affirmed despite headwinds: Management maintained FY25 outlook, navigating retailer destocking and potential tariff risks.
Business Overview
BellRing Brands (NYSE: BRBR) is a global leader in the convenient nutrition category. Its flagship brands include:
Premier Protein: The #1 ready-to-drink (RTD) protein shake in mainstream nutrition, also expanding into powders.
Dymatize: A leader in sports nutrition, especially hydrolyzed protein powders, growing internationally and innovating into pre-workout and RTD shakes.
The company operates across club, mass, food, eCommerce, specialty, drug, and convenience channels in over 90 countries.
Bellring Brands Q2'25 Earnings:
Net Sales: $588.0M (+18.9% YoY)
Operating Profit: $95.1M (+4.5% YoY)
Net Earnings: $58.7M (+2.6% YoY)
Adjusted EBITDA: $118.6M (+14.4% YoY)
EPS (Diluted): $0.45 (+4.7% YoY)
Key Drivers:
Premier Protein net sales surged 22%, driven by volume (+15.3%) and price/mix (+6.7%).
Dymatize net sales rose modestly (+3.0%) with strong international volume (+20.4%) offset by price/mix headwinds (-17.3%).
Gross profit margin slightly compressed due to inflation and promotional activity, but Adjusted gross margin improved to 34.5%.
Forward Guidance
FY25 net sales guidance affirmed at $2.26–$2.34B (+13–17% YoY).
Adjusted EBITDA expected at $470–$500M (+7–14% YoY).
Q3 expected to face low single-digit net sales growth due to inventory destocking and tough comps.
Tariffs not expected to impact FY25, but FY26 risk remains under review.
Operational Performance
Premier Protein:
Household penetration reached nearly 21% and RTD shake market share hit an all-time high of 27%.
Indulgence line off to a strong start, delivering incremental users and sales.
New seasonal flavor Lemon Bar performed above expectations.
Distribution and promotions remain key drivers, especially in Q3 and Q4.
"Premier Protein with RTD market share of 27% maintained its position as the number one brand in the RTD segment." — Darcy Davenport, CEO
Dymatize:
U.S. consumption up 3%; strong international momentum.
Launched RTD shakes and pre-workout Energize.
Athlete-focused marketing campaign increased engagement.
Challenges:
Retailer inventory destocking expected to weigh on Q3 results. Management views this as a one-time adjustment post-supply constraints.
Input cost inflation anticipated to rise in 2H 2025, pressuring margins.
"This is really tied to retailers... hoarding inventory to make sure they didn’t run out. Absolutely no softness, no concern around consumption." — Darcy Davenport, CEO
Market Insights
The convenient nutrition category grew 12%, with RTD up 19% and ready-to-mix up 10%.
RTD shakes remain the second fastest-growing category in the store (behind eggs).
Consumer interest and category tailwinds (health, protein demand) remain strong despite broader macro uncertainty.
"Protein and specifically our category remain incredibly healthy... strong macro tailwinds around protein are driving robust long-term growth." — Darcy Davenport, CEO
Strategic Initiatives
Expanded Premier Protein media campaign improving brand awareness and engagement.
Plans to introduce more innovation in indulgence and incremental occasions later in FY25.
Expanded promotions planned for Q4 to sustain momentum and gain new consumers.
Actively evaluating options to mitigate potential 2026 tariffs, including alternative sourcing and pricing strategies.
Capital Allocation
Share Buybacks:
Repurchased 2.4M shares for $171.7M in Q2 2025.
$280M authorization remains.
Debt & Liquidity:
Net leverage at 1.9x, expected to remain below 2x through FY25.
Strong cash flow expected to continue supporting shareholder returns and debt reduction.
The Bottom Line
BellRing Brands delivered strong Q2 2025 results driven by robust consumption of Premier Protein and successful new product introductions. Despite modest retailer destocking and upcoming cost inflation, management affirmed full-year guidance, reflecting confidence in consumer demand and category momentum. With innovation, marketing, and distribution gains in play, BellRing remains well-positioned for continued growth in the convenient nutrition space.
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