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Jan 27, 2024

National Beverage Q3 2024 Earnings Report

Reported record sales and increased profitability.

Key Takeaways

National Beverage Corp. announced record net sales of $270 million for the third quarter ended January 27, 2024. Gross profit reached an all-time high, and operating income also improved. Earnings per share increased by 14%.

Net sales increased to a record $270 million.

Gross profit grew to an all-time high of $97 million, with a gross profit margin of 36%.

Operating income rose to a record $48 million, with a margin improvement of 120 bps.

Earnings per share increased 14% to $0.42.

Total Revenue
$270M
Previous year: $268M
+0.6%
EPS
$0.42
Previous year: $0.37
+13.5%
Gross Profit
$97M
Previous year: $95M
+2.1%
Cash and Equivalents
$277M
Previous year: $118M
+134.7%
Free Cash Flow
$28.7M
Previous year: $25.7M
+11.7%
Total Assets
$720M
Previous year: $526M
+36.8%

National Beverage

National Beverage

Forward Guidance

The company expressed confidence in its future performance, citing its health-focused strategy and commitment to innovation.

Positive Outlook

  • Company continues to deliver strong double-digit earnings growth.
  • Company continues to expand operating margins.
  • Team continues to innovate and introduce products across the portfolio to delight consumers.
  • Health has been and will long continue to be a tailwind for consumers.
  • Beverages are primarily packaged in cans, the preeminent choice for recyclability and sustainability.

Challenges Ahead

  • Forward-looking statements involve risks, uncertainties and other factors described in the Company's Securities and Exchange Commission filings.
  • Company disclaims an obligation to update or announce revisions to any forward-looking statements.
  • The company faces tough competition from the top three beverage companies in the world.
  • The fund manager questioned if the company will continue receiving the returns it had enjoyed in the past.
  • The company has rejected the approach of extending their brands or launching products containing caffeine or alcohol.