BELLRING BRANDS, INC. Q4 FY2024 earnings call

• Fiscal '24 was a strong year with net sales up 20% and adjusted EBITDA up 30%, exceeding long-term targets. The convenient nutrition category has growth potential with low household penetration but favorable macro trends.
• Premier Protein reached new highs in key metrics without significant advertising, and Dymatize had strong international sales but domestic distribution issues.
• The organization prepared for unconstrained shake production with advertising campaigns, category stories, and new products.
• Fourth quarter convenient nutrition category grew 6%, with RTD shakes up 13%, Premier shake consumption up 14%, and Premier Protein brand metrics strong.

Fourth quarter net sales were $556 million, and adjusted EBITDA was $117 million. Both net sales and adjusted EBITDA grew 18% year-over-year. Premier Protein net sales grew 20%, driven by strong volume growth in RTD shakes and powders; RTD shake sales grew 21%. Dymatize net sales increased 4% this quarter, with strength in international business but domestic headwinds from distribution softness. Full-year fiscal '24 net sales were nearly $2 billion, up 20% year-over-year, and adjusted EBITDA grew 30%, with gross profit of $707 million growing 33%.

• Fiscal '25 net sales expected to be $2.24 billion to $2.32 billion, up 12%-16%, and adjusted EBITDA $460 million to $490 million, up 5%-11%. First quarter net sales growth over 20%.
• Premier Protein expected mid-teens sales growth driven by volume, distribution gains, etc. Dymatize expected low single-digit growth. Adjusted EBITDA margin to decline 130 basis points but remain above long-term target.
• Gross margins pressured by higher protein and input costs, SG&A to be a headwind due to increased marketing for Premier Protein.

• Input cost inflation, particularly on powder business, affecting毛利率. Marketing spend increase may impact margins.

Q: About learnings from Premier national marketing trials, A: Had three in-market tests and creative testing, early results met expectations, can tweak creative.

Q: Capacity outlook in fiscal '25, A: Mid-to-high teens growth, existing network can support until 2026-2027.

Q: Change in 2025 revenue growth expectation, A: More clarity in planning process, bullish on upper end.

Q: First quarter EBITDA margin, A: SG&A to increase significantly, gross margin partially offset but still lower.

Q: Marketing spend percentage, A: 2025 first half marketing spend up,全年占比中高个位数.

Q: Convenience channel strategy, A: Focus on expanding existing distribution, single-serve opportunity big.

Q: 2025 innovation, A: Premier has small and big eye innovations, Dymatize has new platforms, need to meet incremental consumer or occasion.

Q: Reason and level of marketing launch, A: Advertising is important demand driver, started after supply confident,推进谨慎.

Q: Food channel consumers, A: Mainly health-improving breakfast replacers, new occasions expand.

Q: Pricing and inflation, A: Premier shakes price increase covers some inflation, powder受high inflation影响, inflation mid-single digit.

Q: Elasticity after price increase, A: Mostly as expected, some upgrade to larger packs.

Q: Production fees, A: Fourth quarter was isolated co-manufacturer volume missed fee.

Q: Innovation profitability, A: Long-term goal margin accretive, complex but business simple.