BellRing Brands Announces New Share Repurchase Authorization of $300 Million

Rhea-AI Summary

BellRing Brands (NYSE:BRBR) has announced a new $300 million share repurchase authorization approved by its Board of Directors, effective March 7, 2025, for the next two years. Prior to this announcement, the company had already repurchased 2.1 million shares for $151.7 million at an average price of $72.14 per share between December 31, 2024, and March 6, 2025.

The company has nearly completed its previous $300 million buyback program initiated on March 11, 2024, having repurchased approximately $288 million worth of shares before its cancellation on March 6, 2025. The new authorization allows for repurchases through various methods including open market, private purchases, and accelerated repurchase transactions, though it does not obligate BellRing to acquire any specific amount of shares.

Positive

• New $300M share repurchase authorization shows strong financial position
• Nearly complete execution of previous $288M buyback demonstrates commitment to shareholder returns
• Average repurchase price of $72.14 indicates strategic timing of buybacks

Negative

• No obligation to complete the full buyback amount
• Repurchases subject to market conditions and may be suspended

Insights

Financial Analyst

BellRing Brands' $300 million share repurchase authorization represents a significant capital allocation decision that signals confidence in the company's financial position. The program, spanning two years and starting March 7, 2025, follows the near-complete execution of their previous $300 million authorization, with $288 million already deployed.

What's notable is the pace of execution - BellRing used almost their entire previous authorization in just one year, repurchasing 2.1 million shares at an average price of $72.14. This demonstrates a strong commitment to returning capital to shareholders. With a market capitalization of approximately $9.3 billion, this new authorization represents roughly 3.2% of the company's outstanding shares at current prices.

Share repurchases typically benefit investors by reducing the float, which can enhance earnings per share metrics even without underlying profit growth. They also provide a degree of price support and can help offset dilution from employee equity compensation.

The discretionary nature of this program is important to note - BellRing maintains flexibility to suspend or terminate repurchases based on market conditions, liquidity needs, or alternative investment opportunities. This balanced approach allows management to pivot if more compelling uses for capital emerge.

For investors, this continuation of share repurchases demonstrates consistency in capital allocation strategy and suggests the board believes in the company's long-term value proposition. While not transformative in scale, this program represents a tangible commitment to shareholder returns that complements any potential growth initiatives or operating improvements.

ST. LOUIS, March 06, 2025 (GLOBE NEWSWIRE) -- BellRing Brands, Inc. (NYSE:BRBR) today announced its Board of Directors approved a $300 million share repurchase authorization over the next two years with share repurchases under the new authorization beginning on March 7, 2025. Subsequent to December 31, 2024 and as of March 6, 2025, BellRing repurchased 2.1 million shares of its common stock for $151.7 million at an average price of $72.14 per share. As of March 6, 2025, BellRing had repurchased approximately $288 million under its previous $300 million share repurchase authorization, which became effective on March 11, 2024 and has been cancelled effective March 6, 2025.

Repurchases may be made from time to time in the open market, private purchases, through forward, derivative, alternative, accelerated repurchase or automatic purchase transactions, or otherwise. The authorization does not, however, obligate BellRing to acquire any particular amount of shares, and repurchases may be suspended or terminated at any time at BellRing’s discretion. The amount and timing of repurchases are subject to a variety of factors including liquidity, share price, market conditions and legal requirements.

Cautionary Statement on Forward-Looking Language

Forward-looking statements, within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, are made in this press release. These forward-looking statements are sometimes identified from the use of forward-looking words such as “believe,” “should,” “could,” “potential,” “continue,” “expect,” “project,” “estimate,” “predict,” “anticipate,” “aim,” “intend,” “plan,” “forecast,” “target,” “is likely,” “will,” “can,” “may” or “would” or the negative of these terms or similar expressions elsewhere in this press release. All forward-looking statements are subject to a number of important factors, risks, uncertainties and assumptions that could cause actual results to differ materially from those described in any forward-looking statements. These factors and risks include, but are not limited to, unanticipated developments that prevent, delay or negatively impact the repurchases and other financial, operational and legal risks and uncertainties detailed from time to time in BellRing’s cautionary statements contained in its filings with the Securities and Exchange Commission. These forward-looking statements represent BellRing’s judgment as of the date of this press release. BellRing disclaims, however, any intent or obligation to update these forward-looking statements.

About BellRing Brands, Inc.

BellRing Brands, Inc. (NYSE: BRBR) is a dynamic and fast-growing consumer brands business with the purpose of Changing Lives with Good Energy. Focused on growing the convenient nutrition category, the company’s brands include Premier Protein, the #1 ready-to-drink protein and convenient nutrition brand, and Dymatize, the brand behind the #1 hydrolyzed protein powder. A culture-driven, pure-play company, BellRing Brands believes nutrition is at the core of a healthy world and produces products with best-in-class nutritional profiles and exceptional flavors. Its products are distributed in over 90 countries across club, mass, food, eCommerce, specialty, drug and convenience. To learn more visit www.bellring.com.

Contact:
Investor Relations
Jennifer Meyer
jennifer.meyer@bellringbrands.com
(415) 814-9388

FAQ

How much is BellRing's new share repurchase program worth and when does it start?

BellRing's new share repurchase program is worth $300 million and begins on March 7, 2025, lasting for two years.

How many shares did BRBR repurchase between December 31, 2024 and March 6, 2025?

BellRing repurchased 2.1 million shares for $151.7 million at an average price of $72.14 per share during this period.

How much of BRBR's previous buyback authorization was used before cancellation?

BellRing used approximately $288 million of its previous $300 million authorization before it was cancelled on March 6, 2025.

What methods can BRBR use for share repurchases under the new authorization?

BellRing can repurchase shares through open market, private purchases, forward, derivative, alternative, accelerated repurchase or automatic purchase transactions.