BellRing Brands Reports Results for the Third Quarter of Fiscal Year 2024; Raises Fiscal Year 2024 Outlook
BellRing Brands, Inc. (NYSE:BRBR) reported strong results for the third fiscal quarter ended June 30, 2024. The company, operating in the global convenient nutrition category, achieved net sales of $515.4 million and an operating profit of $111.6 million. Net earnings reached $73.7 million, while Adjusted EBITDA stood at $119.5 million.
Following these robust results, BellRing has raised its fiscal year 2024 outlook. The company now projects net sales to be between $1.96 billion and $2.00 billion, with an Adjusted EBITDA range of $430 million to $440 million. This upward revision in guidance signals confidence in BellRing's continued growth and performance in the convenient nutrition market.
BellRing Brands, Inc. (NYSE:BRBR) ha riportato risultati solidi per il terzo trimestre fiscale conclusosi il 30 giugno 2024. L'azienda, operante nel settore della nutrizione conveniente globale, ha raggiunto vendite nette di 515,4 milioni di dollari e un utile operativo di 111,6 milioni di dollari. Gli utili netti sono stati di 73,7 milioni di dollari, mentre l'EBITDA rettificato ha raggiunto 119,5 milioni di dollari.
Dopo questi risultati robusti, BellRing ha aumentato le proprie previsioni per l'anno fiscale 2024. L'azienda prevede ora che le vendite nette si aggireranno tra 1,96 miliardi e 2,00 miliardi di dollari, con un intervallo di EBITDA rettificato di 430 milioni a 440 milioni di dollari. Questa revisione al rialzo delle previsioni segnala fiducia nella crescita continua e nelle performance di BellRing nel mercato della nutrizione conveniente.
BellRing Brands, Inc. (NYSE:BRBR) reportó resultados sólidos para el tercer trimestre fiscal finalizado el 30 de junio de 2024. La empresa, que opera en la categoría de nutrición conveniente a nivel global, logró ventas netas de 515,4 millones de dólares y un beneficio operativo de 111,6 millones de dólares. Las ganancias netas alcanzaron 73,7 millones de dólares, mientras que EBITDA ajustado se situó en 119,5 millones de dólares.
Después de estos resultados robustos, BellRing ha aumentado su perspectiva para el año fiscal 2024. La empresa ahora proyecta que las ventas netas estarán entre 1,96 mil millones y 2,00 mil millones de dólares, con un rango de EBITDA ajustado de 430 millones a 440 millones de dólares. Esta revisión al alza en la orientación señala confianza en el crecimiento continuo y el rendimiento de BellRing en el mercado de nutrición conveniente.
벨링크 브랜드사(BellRing Brands, Inc.) (NYSE:BRBR)는 2024년 6월 30일 종료된 제3회계분기 동안 견고한 실적을 보고했습니다. 글로벌 편리한 영양 카테고리에서 활동하는 이 회사는 5억 1,540만 달러의 순매출과 1억 1,160만 달러의 운영 이익을 달성했습니다. 순이익은 7,370만 달러에 도달했으며, 조정된 EBITDA는 1억 1,950만 달러로 집계되었습니다.
이러한 강력한 실적 뒤에 벨링크는 2024 회계연도 전망을 상향 조정했습니다. 이 회사는 이제 순매출이 19억 6천만에서 20억 달러 사이로, 조정된 EBITDA 범위를 4억 3천만에서 4억 4천만 달러로 예상하고 있습니다. 이러한 상향 조정은 벨링크의 지속적인 성장과 편리한 영양 시장에서의 성과에 대한 자신감을 나타냅니다.
BellRing Brands, Inc. (NYSE:BRBR) a rapporté des résultats solides pour le troisième trimestre fiscal se terminant le 30 juin 2024. L'entreprise, opérant dans la catégorie de nutrition pratique à l'échelle mondiale, a atteint des ventes nettes de 515,4 millions de dollars et un bénéfice d'exploitation de 111,6 millions de dollars. Les bénéfices nets se sont chiffrés à 73,7 millions de dollars, tandis que l'EBITDA ajusté s'est élevé à 119,5 millions de dollars.
À la suite de ces résultats robustes, BellRing a revu à la hausse ses prévisions pour l'exercice 2024. L'entreprise projette désormais que les ventes nettes se situeront entre 1,96 milliard et 2,00 milliards de dollars, avec une fourchette d'EBITDA ajusté de 430 millions à 440 millions de dollars. Cette révision à la hausse des prévisions témoigne d'une confiance dans la croissance continue et les performances de BellRing sur le marché de la nutrition pratique.
BellRing Brands, Inc. (NYSE:BRBR) hat starke Ergebnisse für das dritte Geschäftsquartal zum 30. Juni 2024 gemeldet. Das Unternehmen, das im Bereich der globalen bequemen Ernährung tätig ist, erzielte Nettoverkäufe von 515,4 Millionen Dollar und einen Betriebsgewinn von 111,6 Millionen Dollar. Der Nettogewinn betrug 73,7 Millionen Dollar, während das bereinigte EBITDA bei 119,5 Millionen Dollar lag.
Nach diesen soliden Ergebnissen hat BellRing seine Prognose für das Geschäftsjahr 2024 angehoben. Das Unternehmen erwartet nun, dass die Nettoverkäufe zwischen 1,96 Milliarden und 2,00 Milliarden Dollar liegen werden, mit einem bereinigten EBITDA-Bereich von 430 Millionen bis 440 Millionen Dollar. Diese nach oben angepasste Prognose zeigt Vertrauen in das fortgesetzte Wachstum und die Leistung von BellRing im Markt für bequeme Ernährung.
- Net sales reached $515.4 million in Q3 2024
- Operating profit of $111.6 million for the quarter
- Net earnings of $73.7 million in Q3 2024
- Adjusted EBITDA of $119.5 million for the quarter
- Raised fiscal year 2024 net sales outlook to $1.96-$2.00 billion
- Increased Adjusted EBITDA outlook to $430-$440 million for FY 2024
- None.
Insights
BellRing Brands' Q3 FY2024 results showcase robust financial performance. With net sales of
The raised FY2024 outlook is particularly noteworthy. Projecting net sales of
Investors should note the use of Adjusted EBITDA, a non-GAAP measure. While useful for understanding operational performance, it's important to consider it alongside GAAP metrics for a comprehensive financial picture.
BellRing's strong Q3 performance and raised outlook signal positive momentum in the global convenient nutrition market. The company's ability to grow sales and maintain profitability suggests effective product positioning and consumer demand resilience, even in a potentially challenging economic environment.
The raised guidance implies a year-over-year growth rate of approximately
However, investors should monitor potential headwinds such as inflationary pressures on raw materials and shifts in consumer spending patterns. The company's ability to maintain its growth trajectory will depend on continued market expansion and effective management of these challenges.
ST. LOUIS, Aug. 05, 2024 (GLOBE NEWSWIRE) -- BellRing Brands, Inc. (NYSE:BRBR) (“BellRing”), a holding company operating in the global convenient nutrition category, today reported results for the third fiscal quarter ended June 30, 2024.
Highlights:
- Third quarter net sales of
$515.4 million - Operating profit of
$111.6 million , net earnings of$73.7 million and Adjusted EBITDA* of$119.5 million - Raised fiscal year 2024 net sales outlook to
$1.96 -$2.00 billion and Adjusted EBITDA* outlook to$430 -$440 million
*Adjusted EBITDA is a non-GAAP measure. For additional information regarding non-GAAP measures, see the related explanations presented under “Use of Non-GAAP Measures” later in this release. BellRing provides Adjusted EBITDA guidance only on a non-GAAP basis and does not provide a reconciliation of its forward-looking Adjusted EBITDA non-GAAP guidance measure to the most directly comparable GAAP measure due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, including the adjustments described under “Outlook” later in this release.
“We are pleased with our third quarter performance, with results ahead of our expectations and shake production delivering to plan. Premier Protein achieved all time highs for household penetration and shake distribution points as we broaden our formats and package sizes. Consumption growth for Premier Protein shakes was strong and accelerated in June and continued into July on better in stocks and distribution gains,” said Darcy H. Davenport, President and Chief Executive Officer of BellRing. “Lastly, we saw greater-than-expected margins primarily lifted by favorability in powder input costs. Our strong third quarter performance and visibility to the fourth quarter gives us confidence to raise our outlook for the year.”
Dollar consumption of Premier Protein ready-to-drink (“RTD”) shakes and Premier Protein powder products increased
Third Quarter Operating Results
Net sales were
Premier Protein net sales increased
Dymatize net sales decreased
Gross profit was
Selling, general and administrative (“SG&A”) expenses were
Operating profit was
Interest expense, net was
Net earnings were
Adjusted EBITDA* was
*Adjusted net earnings, Adjusted diluted earnings per common share and Adjusted EBITDA are non-GAAP measures. For additional information regarding non-GAAP measures, see the related explanations presented under “Use of Non-GAAP Measures” later in this release.
Nine Month Operating Results
Net sales were
Gross profit was
SG&A expenses were
Operating profit was
Interest expense, net was
Net earnings were
Adjusted EBITDA* was
*Adjusted net earnings, Adjusted diluted earnings per common share and Adjusted EBITDA are non-GAAP measures. For additional information regarding non-GAAP measures, see the related explanations presented under “Use of Non-GAAP Measures” later in this release.
Share Repurchases
During the third quarter of 2024, BellRing repurchased 1.3 million shares for
Outlook
For fiscal year 2024, BellRing management has raised its guidance range for net sales to
BellRing provides Adjusted EBITDA guidance only on a non-GAAP basis and does not provide a reconciliation of its forward-looking Adjusted EBITDA non-GAAP guidance measure to the most directly comparable GAAP measure due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, including adjustments that could be made for mark-to-market adjustments on commodity hedges and other charges reflected in BellRing’s reconciliations of historical numbers, the amounts of which, based on historical experience, could be significant. For additional information regarding BellRing’s non-GAAP measures, see the related explanations presented under “Use of Non-GAAP Measures.”
Use of Non-GAAP Measures
BellRing uses certain non-GAAP measures in this release to supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). These non-GAAP measures include Adjusted net earnings, Adjusted diluted earnings per common share, Adjusted EBITDA and Adjusted EBITDA as a percentage of net sales. The reconciliation of each of these non-GAAP measures to the most directly comparable GAAP measure is provided later in this release under “Explanation and Reconciliation of Non-GAAP Measures.”
Management uses certain of these non-GAAP measures, including Adjusted EBITDA and Adjusted EBITDA as a percentage of net sales, as key metrics in the evaluation of underlying company performance, in making financial, operating and planning decisions and, in part, in the determination of bonuses for its executive officers and employees. Additionally, BellRing is required to comply with certain covenants and limitations that are based on variations of EBITDA in its financing documents. Management believes the use of these non-GAAP measures provides increased transparency and assists investors in understanding the underlying operating performance of BellRing and in the analysis of ongoing operating trends. Non-GAAP measures are not prepared in accordance with GAAP, as they exclude certain items as described later in this release. These non-GAAP measures may not be comparable to similarly titled measures of other companies. For additional information regarding BellRing’s non-GAAP measures, see the related explanations provided under “Explanation and Reconciliation of Non-GAAP Measures” later in this release.
Conference Call to Discuss Earnings Results and Outlook
BellRing will host a conference call on Tuesday, August 6, 2024 at 9:00 a.m. EDT to discuss financial results for the third quarter of fiscal year 2024 and fiscal year 2024 outlook and to respond to questions. Darcy H. Davenport, President and Chief Executive Officer, and Paul A. Rode, Chief Financial Officer, will participate in the call.
Interested parties may join the conference call by registering in advance at the following link: BellRing Q3 2024 Earnings Conference Call. Upon registration, participants will receive a dial-in number and a unique passcode to access the conference call. Interested parties are invited to listen to the webcast of the conference call, which can be accessed by visiting the Investor Relations section of BellRing’s website at www.bellring.com. A slide presentation containing supplemental material will also be available at the same location on BellRing’s website. A webcast replay also will be available for a limited period on BellRing’s website in the Investor Relations section.
Prospective Financial Information
Prospective financial information is necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying the prospective financial information described above will not materialize or will vary significantly from actual results. For further discussion of some of the factors that may cause actual results to vary materially from the information provided above, see “Forward-Looking Statements” below. Accordingly, the prospective financial information provided above is only an estimate of what BellRing’s management believes is realizable as of the date of this release. It also should be recognized that the reliability of any forecasted financial data diminishes the farther in the future that the data is forecasted. In light of the foregoing, the information should be viewed in context and undue reliance should not be placed upon it.
Forward-Looking Statements
Certain matters discussed in this release and on BellRing’s conference call are forward-looking statements, including BellRing’s net sales, Adjusted EBITDA and capital expenditures outlook for fiscal year 2024. 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, and include all statements regarding future performance, earnings projections, events or developments. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements made herein. These risks and uncertainties include, but are not limited to, the following:
- BellRing’s dependence on sales from its RTD protein shakes;
- BellRing’s ability to continue to compete in its product categories and its ability to retain its market position and favorable perceptions of its brands;
- disruptions or inefficiencies in BellRing’s supply chain, including as a result of BellRing’s reliance on third-party suppliers or manufacturers for the manufacturing of many of its products, pandemics and other outbreaks of contagious diseases, labor shortages, fires and evacuations related thereto, changes in weather conditions, natural disasters, agricultural diseases and pests and other events beyond BellRing’s control;
- BellRing’s dependence on a limited number of third-party contract manufacturers for the manufacturing of most of its products, including one manufacturer for the majority of its RTD protein shakes;
- the ability of BellRing’s third-party contract manufacturers to produce an amount of BellRing’s products that enables BellRing to meet customer and consumer demand for the products;
- BellRing’s reliance on a limited number of third-party suppliers to provide certain ingredients and packaging;
- significant volatility in the cost or availability of inputs to BellRing’s business (including freight, raw materials, packaging, energy, labor and other supplies);
- BellRing’s ability to anticipate and respond to changes in consumer and customer preferences and behaviors and introduce new products;
- consolidation in BellRing’s distribution channels;
- BellRing’s ability to expand existing market penetration and enter into new markets;
- the loss of, a significant reduction of purchases by or the bankruptcy of a major customer;
- legal and regulatory factors, such as compliance with existing laws and regulations, as well as new laws and regulations and changes to existing laws and regulations and interpretations thereof, affecting BellRing’s business, including current and future laws and regulations regarding food safety, advertising, labeling, tax matters and environmental matters;
- fluctuations in BellRing’s business due to changes in its promotional activities and seasonality;
- BellRing’s ability to maintain the net selling prices of its products and manage promotional activities with respect to its products;
- BellRing’s ability to obtain additional financing (including both secured and unsecured debt) and its ability to service its outstanding debt (including covenants that restrict the operation of its business);
- the accuracy of BellRing’s market data and attributes and related information;
- changes in critical accounting estimates;
- uncertain or unfavorable economic conditions that limit customer and consumer demand for BellRing’s products or increase its costs;
- risks related to BellRing’s ongoing relationship with Post Holdings, Inc. (“Post”) following BellRing’s separation from Post and Post’s distribution of BellRing stock to Post’s shareholders (the “Spin-off”), including BellRing’s obligations under various agreements with Post;
- conflicting interests or the appearance of conflicting interests resulting from certain of BellRing’s directors also serving as officers or directors of Post;
- risks related to the previously completed Spin-off;
- the ultimate impact litigation or other regulatory matters may have on BellRing;
- risks associated with BellRing’s international business;
- BellRing’s ability to protect its intellectual property and other assets and to continue to use third-party intellectual property subject to intellectual property licenses;
- costs, business disruptions and reputational damage associated with technology failures, cybersecurity incidents and corruption of BellRing’s data privacy protections;
- impairment in the carrying value of goodwill or other intangible assets;
- BellRing’s ability to identify, complete and integrate or otherwise effectively execute acquisitions or other strategic transactions and effectively manage its growth;
- BellRing’s ability to hire and retain talented personnel, employee absenteeism, labor strikes, work stoppages or unionization efforts;
- BellRing’s ability to satisfy the requirements of Section 404 of the Sarbanes-Oxley Act of 2002;
- significant differences in BellRing’s actual operating results from any guidance BellRing may give regarding its performance; and
- other risks and uncertainties described in BellRing’s filings with the Securities and Exchange Commission.
These forward-looking statements represent BellRing’s judgment as of the date of this release. BellRing disclaims, however, any intent or obligation to update these forward-looking statements.
About BellRing Brands, Inc.
BellRing Brands, Inc. is a rapidly growing leader in the global convenient nutrition category offering ready-to-drink shake and powder protein products. Its primary brands, Premier Protein® and Dymatize®, appeal to a broad range of consumers and are distributed across a diverse network of channels including club, food, drug, mass, eCommerce, specialty and convenience. BellRing’s commitment to consumers is to strive to make highly effective products that deliver best-in-class nutritionals and superior taste. For more information, visit www.bellring.com.
Contact:
Investor Relations
Jennifer Meyer
jennifer.meyer@bellringbrands.com
(415) 814-9388
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited) (in millions, except for per share data) | |||||||||||||||
| Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net Sales | $ | 515.4 | $ | 445.9 | $ | 1,440.4 | $ | 1,194.2 | |||||||
| Cost of goods sold | 325.5 | 309.9 | 938.2 | 819.3 | |||||||||||
| Gross Profit | 189.9 | 136.0 | 502.2 | 374.9 | |||||||||||
| Selling, general and administrative expenses | 74.0 | 55.1 | 195.9 | 151.1 | |||||||||||
| Amortization of intangible assets | 4.3 | 4.9 | 30.7 | 14.6 | |||||||||||
| Operating Profit | 111.6 | 76.0 | 275.6 | 209.2 | |||||||||||
| Interest expense, net | 14.4 | 17.3 | 43.8 | 50.8 | |||||||||||
| Earnings before Income Taxes | 97.2 | 58.7 | 231.8 | 158.4 | |||||||||||
| Income tax expense | 23.5 | 14.4 | 57.0 | 39.0 | |||||||||||
| Net Earnings | $ | 73.7 | $ | 44.3 | $ | 174.8 | $ | 119.4 | |||||||
| Earnings per Common Share: | |||||||||||||||
| Basic | $ | 0.57 | $ | 0.33 | $ | 1.34 | $ | 0.89 | |||||||
| Diluted | $ | 0.56 | $ | 0.33 | $ | 1.32 | $ | 0.89 | |||||||
| Weighted-Average Common Shares Outstanding: | |||||||||||||||
| Basic | 130.0 | 132.4 | 130.7 | 133.6 | |||||||||||
| Diluted | 132.1 | 133.8 | 132.7 | 134.5 | |||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in millions) | |||||||
| June 30, 2024 | September 30, 2023 | ||||||
| ASSETS | |||||||
| Current Assets | |||||||
| Cash and cash equivalents | $ | 72.6 | $ | 48.4 | |||
| Receivables, net | 230.7 | 168.2 | |||||
| Inventories | 237.8 | 194.3 | |||||
| Prepaid expenses and other current assets | 13.1 | 13.3 | |||||
| Total Current Assets | 554.2 | 424.2 | |||||
| Property, net | 8.2 | 8.5 | |||||
| Goodwill | 65.9 | 65.9 | |||||
| Intangible assets, net | 146.1 | 176.8 | |||||
| Deferred income taxes | 14.4 | 4.2 | |||||
| Other assets | 15.3 | 12.0 | |||||
| Total Assets | $ | 804.1 | $ | 691.6 | |||
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | |||||||
| Current Liabilities | |||||||
| Accounts payable | $ | 113.9 | $ | 89.0 | |||
| Other current liabilities | 94.0 | 61.2 | |||||
| Total Current Liabilities | 207.9 | 150.2 | |||||
| Long-term debt | 832.7 | 856.8 | |||||
| Deferred income taxes | 0.4 | 0.4 | |||||
| Other liabilities | 6.3 | 7.7 | |||||
| Total Liabilities | 1,047.3 | 1,015.1 | |||||
| Stockholders’ Deficit | |||||||
| Common stock | 1.4 | 1.4 | |||||
| Additional paid-in capital | 31.6 | 19.3 | |||||
| Accumulated deficit | (15.3 | ) | (190.1 | ) | |||
| Accumulated other comprehensive loss | (2.8 | ) | (3.1 | ) | |||
| Treasury stock, at cost | (258.1 | ) | (151.0 | ) | |||
| Total Stockholders’ Deficit | (243.2 | ) | (323.5 | ) | |||
| Total Liabilities and Stockholders’ Deficit | $ | 804.1 | $ | 691.6 | |||
| SELECTED CONDENSED CONSOLIDATED CASH FLOWS INFORMATION (Unaudited) (in millions) | |||||||
| Nine Months Ended June 30, | |||||||
| 2024 | 2023 | ||||||
| Cash provided by (used in): | |||||||
| Operating activities | $ | 159.5 | $ | 130.7 | |||
| Investing activities | (0.6 | ) | (1.0 | ) | |||
| Financing activities | (134.6 | ) | (139.8 | ) | |||
| Effect of exchange rate changes on cash and cash equivalents | (0.1 | ) | 0.4 | ||||
| Net increase (decrease) in cash and cash equivalents | $ | 24.2 | $ | (9.7 | ) | ||
EXPLANATION AND RECONCILIATION OF NON-GAAP MEASURES
BellRing uses certain non-GAAP measures in this release to supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). These non-GAAP measures include Adjusted net earnings, Adjusted diluted earnings per common share, Adjusted EBITDA and Adjusted EBITDA as a percentage of net sales. The reconciliation of each of these non-GAAP measures to the most directly comparable GAAP measure is provided in the tables following this section. Non-GAAP measures are not prepared in accordance with GAAP, as they exclude certain items as described below. These non-GAAP measures may not be comparable to similarly titled measures of other companies.
Adjusted net earnings and Adjusted diluted earnings per common share
BellRing believes Adjusted net earnings and Adjusted diluted earnings per common share are useful to investors in evaluating BellRing’s operating performance because they exclude items that affect the comparability of BellRing’s financial results and could potentially distort an understanding of the trends in business performance.
Adjusted net earnings and Adjusted diluted earnings per common share are adjusted for the following items:
- Accelerated amortization: BellRing has excluded non-cash accelerated amortization charges recorded in connection with the discontinuation of certain brands or the discontinuation of the use of certain brands in certain regions as the amount and frequency of such charges are not consistent. Additionally, BellRing believes that these charges do not reflect expected ongoing future operating expenses and do not contribute to a meaningful evaluation of BellRing’s current operating performance or comparisons of BellRing’s operating performance to other periods.
- Mark-to-market adjustments on commodity hedges: BellRing has excluded the impact of mark-to-market adjustments on commodity hedges due to the inherent uncertainty and volatility associated with such amounts based on changes in assumptions with respect to fair value estimates. Additionally, these adjustments are primarily non-cash items and the amount and frequency of such adjustments are not consistent.
- Foreign currency gain/loss on intercompany loans: BellRing has excluded the impact of foreign currency fluctuations related to intercompany loans denominated in currencies other than the functional currency of the respective legal entity in evaluating BellRing’s performance to allow for more meaningful comparisons of performance to other periods.
- Separation costs: BellRing has excluded certain expenses incurred in connection with secondary offerings of shares of BellRing common stock previously held by Post, as the amount and frequency of such expenses are not consistent. Additionally, BellRing believes that these costs do not reflect expected ongoing future operating expenses and do not contribute to a meaningful evaluation of BellRing’s current operating performance or comparisons of BellRing’s operating performance to other periods.
- Income tax effect on adjustments: BellRing has included the income tax impact of the non-GAAP adjustments using a rate described in the applicable footnote of the reconciliation tables, as BellRing believes that its GAAP effective income tax rate as reported is not representative of the income tax expense impact of the adjustments.
Adjusted EBITDA and Adjusted EBITDA as a percentage of net sales
BellRing believes that Adjusted EBITDA is useful to investors in evaluating BellRing’s operating performance and liquidity because (i) BellRing believes it is widely used to measure a company’s operating performance without regard to items such as depreciation and amortization, which can vary depending upon accounting methods and the book value of assets, (ii) it presents a measure of corporate performance exclusive of BellRing’s capital structure and the method by which the assets were acquired and (iii) it is a financial indicator of a company’s ability to service its debt, as BellRing is required to comply with certain covenants and limitations that are based on variations of EBITDA in its financing documents. Management uses Adjusted EBITDA to provide forward-looking guidance and to forecast future results. BellRing believes that Adjusted EBITDA as a percentage of net sales is useful to investors in evaluating BellRing’s operating performance because it allows for more meaningful comparison of operating performance across periods.
Adjusted EBITDA reflects adjustments for income tax expense, interest expense, net and depreciation and amortization including accelerated amortization, and the following adjustments discussed above: mark-to-market adjustments on commodity hedges, foreign currency gain/loss on intercompany loans and separation costs. Additionally, Adjusted EBITDA reflects an adjustment for the following item: - Stock-based compensation: BellRing’s compensation strategy includes the use of BellRing stock-based compensation to attract and retain executives and employees by aligning their long-term compensation interests with BellRing’s stockholders’ investment interests. BellRing’s director compensation strategy includes an election by any director who earns retainers in which the director may elect to defer compensation granted as a director to BellRing common stock, earning a match on the deferral, both of which are stock-settled upon the director’s retirement from the BellRing board of directors. BellRing has excluded stock-based compensation as stock-based compensation can vary significantly based on reasons such as the timing, size and nature of the awards granted and subjective assumptions which are unrelated to operational decisions and performance in any particular period and does not contribute to meaningful comparisons of BellRing’s operating performance to other periods.
| RECONCILIATION OF NET EARNINGS TO ADJUSTED NET EARNINGS (Unaudited) (in millions) | |||||||||||||||
| Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net Earnings | $ | 73.7 | $ | 44.3 | $ | 174.8 | $ | 119.4 | |||||||
| Adjustments: | |||||||||||||||
| Accelerated amortization | — | — | 17.4 | — | |||||||||||
| Mark-to-market adjustments on commodity hedges | (2.3 | ) | 1.9 | 0.4 | 3.9 | ||||||||||
| Foreign currency loss (gain) on intercompany loans | — | — | 0.1 | (0.6 | ) | ||||||||||
| Separation costs | — | — | — | 0.7 | |||||||||||
| Total Net Adjustments | (2.3 | ) | 1.9 | 17.9 | 4.0 | ||||||||||
| Income tax effect on adjustments(1) | 0.5 | (0.5 | ) | (4.3 | ) | (0.8 | ) | ||||||||
| Adjusted Net Earnings | $ | 71.9 | $ | 45.7 | $ | 188.4 | $ | 122.6 | |||||||
| (1)Income tax effect on adjustments was calculated on all items, except for separation costs, using a rate of | |||||||||||||||
| RECONCILIATION OF DILUTED EARNINGS PER COMMON SHARE TO ADJUSTED DILUTED EARNINGS PER COMMON SHARE (Unaudited) | |||||||||||||||
| Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Diluted Earnings per share of Common Stock | $ | 0.56 | $ | 0.33 | $ | 1.32 | $ | 0.89 | |||||||
| Adjustments: | |||||||||||||||
| Accelerated amortization | — | — | 0.13 | — | |||||||||||
| Mark-to-market adjustments on commodity hedges | (0.02 | ) | 0.01 | — | 0.03 | ||||||||||
| Total Net Adjustments | (0.02 | ) | 0.01 | 0.13 | 0.03 | ||||||||||
| Income tax effect on adjustments(1) | — | — | (0.03 | ) | (0.01 | ) | |||||||||
| Adjusted Diluted Earnings per share of Common Stock | $ | 0.54 | $ | 0.34 | $ | 1.42 | $ | 0.91 | |||||||
| (1)Income tax effect on adjustments was calculated on all items using a rate of | |||||||||||||||
| RECONCILIATION OF NET EARNINGS TO ADJUSTED EBITDA (Unaudited) (in millions) | |||||||||||||||
| Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net Earnings | $ | 73.7 | $ | 44.3 | $ | 174.8 | $ | 119.4 | |||||||
| Income tax expense | 23.5 | 14.4 | 57.0 | 39.0 | |||||||||||
| Interest expense, net | 14.4 | 17.3 | 43.8 | 50.8 | |||||||||||
| Depreciation and amortization, including accelerated amortization | 4.6 | 5.3 | 31.8 | 15.8 | |||||||||||
| Stock-based compensation | 5.6 | 3.7 | 15.8 | 10.8 | |||||||||||
| Mark-to-market adjustments on commodity hedges | (2.3 | ) | 1.9 | 0.4 | 3.9 | ||||||||||
| Foreign currency loss (gain) on intercompany loans | — | — | 0.1 | (0.6 | ) | ||||||||||
| Separation costs | — | — | — | 0.7 | |||||||||||
| Adjusted EBITDA | $ | 119.5 | $ | 86.9 | $ | 323.7 | $ | 239.8 | |||||||
| Net Earnings as a percentage of Net Sales | 14.3 | % | 9.9 | % | 12.1 | % | 10.0 | % | |||||||
| Adjusted EBITDA as a percentage of Net Sales | 23.2 | % | 19.5 | % | 22.5 | % | 20.1 | % | |||||||
FAQ
What were BellRing Brands' (BRBR) Q3 2024 net sales?
How much was BellRing Brands' (BRBR) operating profit in Q3 2024?
What is BellRing Brands' (BRBR) updated net sales outlook for fiscal year 2024?
What is BellRing Brands' (BRBR) revised Adjusted EBITDA guidance for FY 2024?
