National Beverage Corp. Reports Exceptional Winter Quarter
- None.
- None.
Insights
The reported increase in net sales to $270 million and gross profit margin to 36% by National Beverage Corp. reflects a robust financial performance, indicative of effective cost management and possibly increased pricing power. The 120 basis points improvement in operating margin and the 14% rise in earnings per share (EPS) suggest operational efficiency and a strong return on investment for shareholders. The growth in cash reserves to $277 million provides the company with a solid liquidity position, which could be utilized for strategic investments or to weather potential market downturns.
Investors should consider the potential for sustained growth, given the company's track record of consistent sales growth over eleven quarters. However, they should also be mindful of market saturation risks and the competitive landscape in the beverage industry, which could impact future earnings.
The introduction of the new LaCroix flavor, Mojito and its national availability is a strategic move to capture consumer interest and potentially increase market share. The company's focus on innovation and product diversification is critical in the beverage industry, where consumer preferences are rapidly evolving. The recognition by Newsweek as one of 'The Most Trusted Brands in America' could enhance brand loyalty and influence consumer purchasing behavior.
Furthermore, the company's ability to outperform major competitors and grow its volume significantly could be attributed to effective marketing strategies and a deep understanding of consumer trends. The ongoing commitment to health and longevity themes resonates with current consumer wellness trends, which could further bolster the brand's market position.
The financial results of National Beverage Corp. suggest a positive economic impact on the company's stakeholders and hint at a favorable consumer response to beverage products. The double-digit earnings growth and margin expansion signal that the company may be benefiting from economies of scale and potentially a favorable input cost environment. However, macroeconomic factors such as inflation, changes in consumer disposable income and shifts in consumer preferences could influence future performance.
It is also worth noting that the beverage industry is sensitive to economic cycles. While the company's current performance is strong, it is important to monitor economic indicators that could affect consumer spending patterns, which in turn, would impact sales and profitability.
-
Net sales increased to a record
$270 million -
Gross profit grew to an all-time high of
$97 million 36% of sales; -
Operating income rose to
$48 million -
Earnings per share increased
14% to$.42 ; and -
Cash grew to
$277 million
“We are pleased to report our eleventh consecutive quarter of record sales coupled with outstanding gross profits and operating income. We continue to deliver strong double-digit earnings growth and expansion of our operating margins. This performance is the result of the caliber of our focus. Focus challenges everything we undertake here at National Beverage and is most evident in our innovation. Nothing is ever accepted unless it succeeds the highest score of the past,” stated a company spokesperson.
“Team National continues to innovate and introduce products across our portfolio to delight consumers. Our newest LaCroix flavor, Mojito, brings the sensory feel of paradise directly to consumers and has just recently become available nationally. We are particularly pleased to report that based on a survey of
“Recently, a prominent fund manager was visiting National Beverage to see if his fund, which had been investing in National Beverage for a long time, would continue receiving the returns it had enjoyed in the past. He stated that he has followed the company from the days when it had only half its present volume and its toughest competition was the top three beverage companies in the world, yet the company continued to create nearly two-and-one-half times the volume it previously had. He then asked a simple question, ‘How is this possible?’ He went on to further ask, ‘Will this performance continue in the future?’ Yes, was the answer, as long as health and longevity remain top of mind.”
“Team National’s strategy remains squarely about health. Although we are known primarily for LaCroix, the leading domestic sparkling water innocent of calories, sweeteners and sodium, our strategic health focus extends widely to all aspects of our company. While others have extended their brands or launched products containing caffeine or alcohol, we have rejected that approach because of our concern for the health of our consumers. Additionally, our beverages are primarily packaged in cans, which are the preeminent choice for recyclability and sustainability. Since the founding of National Beverage, we have operated with a financial philosophy that prioritizes strong healthy cash flows, eschews long-term debt and prioritizes shareholder returns without manipulative stock buybacks. We remain committed to delivering healthy products that strike an emotional and sensory appeal to consumers with outstanding taste. We believe health has been and will long continue to be a tailwind for our consumers and shareholders,” concluded the spokesperson.
“Patriotism” – If Only We Could Bottle It!
| National Beverage Corp. | ||||||||||
| Consolidated Results for the Periods Ended | ||||||||||
| January 27, 2024 and January 28, 2023 | ||||||||||
| (in thousands, except per share amounts) | ||||||||||
| Three Months Ended | Trailing Twelve Months Ended | |||||||||
| Jan. 27, 2024 | Jan. 28, 2023 | Jan. 27, 2024 | ||||||||
| Net Sales | $ |
270,065 |
$ |
268,483 |
$ |
1,181,078 |
||||
| Net Income | $ |
39,592 |
$ |
34,361 |
$ |
169,314 |
||||
| Earnings Per Common Share | ||||||||||
| Basic | $ |
.42 |
$ |
.37 |
$ |
1.81 |
||||
| Diluted | $ |
.42 |
$ |
.37 |
$ |
1.81 |
||||
| Average Common Shares Outstanding | ||||||||||
| Basic |
|
93,454 |
|
93,353 |
|
93,380 |
||||
| Diluted |
|
93,640 |
|
93,611 |
|
93,618 |
||||
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks, uncertainties and other factors described in the Company's Securities and Exchange Commission filings which may cause actual results or achievements to differ from the results or achievements expressed or implied by such statements. The Company disclaims an obligation to update or announce revisions to any forward-looking statements.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240307817268/en/
Office of the Chairman, Grace Keene
877-NBC-FIZZ
www.nationalbeverage.com
Source: National Beverage Corp.
FAQ
What were National Beverage Corp.'s (FIZZ) net sales in the third quarter?
What was the gross profit of National Beverage Corp. (FIZZ) in the third quarter?
What was the operating income of National Beverage Corp. (FIZZ) in the third quarter?
What was the earnings per share of National Beverage Corp. (FIZZ) in the third quarter?
How much did National Beverage Corp.'s (FIZZ) cash grow to in the third quarter?
What new product did National Beverage Corp. (FIZZ) introduce recently?
Which publication recognized LaCroix as one of The Most Trusted Brands in America?
How many consecutive quarters of record sales has National Beverage Corp. (FIZZ) achieved?
