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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.
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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