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Mar 31, 2022
BellRing Q2 2022 Earnings Report
Reported results for the second quarter of fiscal year 2022 and raised the fiscal year 2022 outlook.
Key Takeaways
BellRing Brands reported a net sales increase of 11.7% to $315.2 million in the second quarter of fiscal year 2022. The company raised its fiscal year 2022 net sales guidance to $1.39-$1.43 billion and Adjusted EBITDA guidance to $258-$268 million.
Second quarter net sales reached $315.2 million.
Operating profit was $33.2 million with net earnings available to common stockholders at $1.3 million, and Adjusted EBITDA at $50.9 million.
Premier Protein net sales increased 6.5%, driven by higher average net selling prices, while volumes declined 4.4%.
Dymatize net sales increased 54.9%, with volumes up 25.1%, benefiting from higher prices, strong velocities, and distribution gains.
BellRing
BellRing
BellRing Revenue by Segment
Revenue by Segment
Shakes & Other Beverages Revenue
CapyFin.com Forward Guidance
BellRing management has raised its guidance range for net sales to $1.39-$1.43 billion from $1.36-$1.41 billion and Adjusted EBITDA to $258-$268 million from $255-$265 million.
Positive Outlook
- Net sales growth of 11%-15% over fiscal year 2021
- Adjusted EBITDA growth of 10%-15% over fiscal year 2021
- Gross margins are expected to improve in the second half of fiscal year 2022 when compared to the first half of fiscal year 2022 as a result of recent pricing actions.
- Raise fiscal year 2022 net sales guidance to $1.39-$1.43 billion
- Raise Adjusted EBITDA (non-GAAP) guidance to $258-$268 million
Challenges Ahead
- Input and freight inflation and labor and input availability are pressuring BellRing’s supply chain.
- Lower than anticipated production and delays in capacity expansion across the broader third party shake contract manufacturer network have resulted in low inventories and missed sales.
- Service levels and fill rates remain below normal levels, and certain products have been placed on allocation.
- Raw material, packaging and freight inflation has been widespread, rapid and significant, and has put downward pressure on profit margins.
- These factors are improving but expected to persist throughout fiscal year 2022 and are dependent upon BellRing’s contract manufacturer partners’ ability to deliver committed volumes, add capacity on expected timelines, retain manufacturing staff and rebuild inventory levels.