Q2 2024 Bellring Brands Inc Earnings Call Transcript
Key Points
- BellRing Brands Inc (BRBR) reported a 28% increase in net sales and a 53% increase in adjusted EBITDA over the prior year, indicating strong financial performance.
- The company successfully executed two club promotions in one quarter, significantly boosting consumer and retailer engagement and excitement.
- BellRing Brands Inc (BRBR) raised its fiscal year outlook based on better-than-expected performance in the first half, strong consumption trends, and confidence in ongoing capacity expansion.
- Premier Protein shake consumption grew robustly by 29% this quarter, with high growth across all channels, driven by promotions, strong velocities, and distribution expansion.
- BellRing Brands Inc (BRBR) continues to lead with a market share of 21% in the RTD segment and maintains the top position in the broader convenient nutrition category.
- Despite overall strong performance, Dymatize brand faced challenges with an 8% decline in US consumption, affected by ongoing softness in specialty channels and increased competitive activity in e-commerce.
- Temporary out-of-stocks in some products occurred late in the quarter and into April, although these are expected to stabilize and improve in the second half.
- The ready-to-mix segment grew only 3%, showing a slowdown as consumers traded down to value brands and switched to other high-protein products.
- Increased competitive activity in e-commerce led to a highly competitive environment for Dymatize, with deep discounting by emerging brands impacting performance.
- Input costs for certain materials are expected to rise in the second half of the fiscal year, potentially impacting margins despite planned pricing actions late in the fourth quarter.
Good day, and thank you for standing by. Welcome to BellRing Brands quarter fiscal year 2024 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Jennifer Meyer, Investor Relations for BellRing Brands. Please go ahead.
Good morning, and thank you for joining us today for BellRing Brands' second-quarter fiscal 2024 earnings call. With me today are Darcy Davenport, our President and CEO; and Paul Rode, our CFO. Darcy and Paul will begin with prepared remarks, and afterwards, we'll have a brief question-and-answer session.
The press release and supplemental slide presentation that supports these remarks are posted on our website in both the Investor Relations and the SEC Filings sections at bellring.com. In addition, the release and slides are available on the SEC's website.
Before we continue, I would like to remind you that this call will contain forward-looking
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