National Beverage Corp. Reports Record Fourth Quarter and Fiscal Year-end Results...Corporate Endorphins at Work

Rhea-AI Summary

National Beverage Corp. (NASDAQ: FIZZ) reported record results for Q4 and the fiscal year ending April 27, 2024. Q4 net sales rose by $11 million to $297 million, with gross margins increasing by 100 bps to 36.7% of sales. Net income for Q4 surged by 20% to $44 million, or $0.47 per share. For the fiscal year, net sales climbed by $19 million to $1.2 billion, and operating profits grew by 240 bps to $218 million. Net income increased by 24% to $177 million, or $1.89 per share, and cash reserves rose by $169 million to $327 million. The company credited its LaCroix and Rip It brands for a 5% increase in overall case volume, bolstered by innovative new products such as Mojito LaCroix and Shasta Zero Sugar.

The spokesperson emphasized the importance of innovation and creative packaging in driving growth. The company also highlighted a strategic focus on shareholder value, culminating in a recently announced dividend.

Positive

• Q4 net sales increased by $11 million to $297 million.
• Gross margins for Q4 improved by 100 bps to 36.7% of sales.
• Q4 net income rose by 20% to $44 million ($0.47 per share).
• Fiscal year net sales increased by $19 million to $1.2 billion.
• Operating profits for the fiscal year grew by 240 bps to $218 million.
• Fiscal year net income increased by 24% to $177 million ($1.89 per share).
• Cash reserves increased by $169 million, reaching $327 million.
• Overall case volume grew by 5%, led by LaCroix and Rip It brands.

Negative

• None.

Financial Analyst

National Beverage Corp.'s recent earnings report highlights significant growth in various key financial metrics. The 20% increase in net income to $44 million for the fourth quarter is particularly noteworthy. This suggests improved operational efficiency and effective cost management, especially when coupled with a 100 basis point increase in gross margins to 36.7% of sales.

Furthermore, for the fiscal year, the company saw a 24% increase in net income, reaching $177 million. This surge in profitability is complemented by a robust increase in cash reserves by $169 million to $327 million, which enhances their financial flexibility moving forward. However, the relatively modest increase in net sales by $19 million to $1.2 billion suggests that while revenue growth is steady, it is not the primary driver of the profit increase.

For investors, this indicates a strong financial position, with the capability to reinvest in product development or return value to shareholders through dividends or share repurchases. The company's emphasis on innovative products like LaCroix and Rip It continues to support their market presence and revenue streams. This performance can be seen as a positive sign, suggesting potential for continued growth in both the short and long term.

Market Research Analyst

From a market standpoint, the 5% growth in overall case volume is a strong indicator of increasing consumer demand for National Beverage Corp.'s products. The company's success in launching new flavors and packaging innovations, such as the Mojito flavor for LaCroix and new Rip It energy fuel flavors, shows their ability to stay relevant and appealing in a competitive market.

This ability to innovate is critical in the beverage industry, where consumer preferences can be fickle. The adoption of new zero-sugar products under the Shasta brand also aligns with current health-conscious trends, potentially expanding their customer base.

However, the company's reliance on emotional and somewhat abstract concepts like 'corporate endorphins' in their strategic communication, while unique, might not resonate with all investors. Investors typically seek concrete performance metrics and clear strategic plans. Despite this, the company's consistent revenue and profit growth indicate that their approach, however unconventional, is effective for now.

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)-- National Beverage Corp. (NASDAQ: FIZZ) today announced results for its fourth quarter and fiscal year ended April 27, 2024. Our recent disclosures and this earnings report confirm that a new and more stimulating period has begun. Compared to the prior year –

Fourth Quarter

• Net sales increased $11 million to $297 million;
• Gross margins grew 100 bps to 36.7% of sales; and
• Net income increased 20% to $44 million, or $.47 per share.

Fiscal Year

• Net sales increased $19 million to $1.2 billion;
• Operating profits grew 240 bps to $218 million;
• Net income increased 24% to $177 million, or $1.89 per share; and
• Cash increased $169 million to $327 million.

“We are pleased to wrap up our fiscal year with a ‘best ever’ fourth quarter and to continue the momentum generated by the last six quarters of record revenues and year-over-year income growth,” stated a company spokesperson. “Led by LaCroix and Rip It, overall case volume grew 5% while net sales, operating profit and net income all set fourth-quarter records.”

“Innovative flavors and packaging remain the keys to our brand growth, with consumers and retailers alike enthusiastically embracing Mojito, our latest LaCroix offering, the new and unique Rip It energy fuel flavors and the recently introduced Shasta Zero Sugar favorites.”

“A positive indicator for our new year has always been the backlog of innovative ideas that the end of winter has stored up, setting the mood for the year ahead. Earnings are extremely important to our investors and to our goals, but equally as important as earnings are feelings that are generated within management’s view. Feelings ignite ideas and ideas are at our deepest core within the soul of National Beverage Corp.”

“National Beverage has yet to achieve its ultimate purpose. Our latest creations in packaging with brightness of color, stimulating images and unique tastes of flavors have reached a profound level of creativity.”

The spokesperson concluded, “As endorphins stimulate the human body, philosophy and strategy are endorphins for a corporate entity. These endorphins are reflected in what is written on the checks of the recently announced dividend. This statement sums up what has always occurred at National Beverage.

Companies do not end up doing good
for their shareholders . . . they start –
with their commitment to the shareholders –
and make good on IT!”

“Patriotism” – If Only We Could Bottle It!

National Beverage Corp.
Consolidated Results for the Periods Ended
April 27, 2024 and April 29, 2023
(in thousands, except per share amounts)
		Three Months Ended									Fiscal Years Ended
		April 27, 2024				April 29, 2023					April 27, 2024				April 29, 2023
Net Sales		$	297,315			$	286,699				$	1,191,694			$	1,172,932
Net Income		$	43,721			$	36,303				$	176,732			$	142,164
Earnings Per Common Share
Basic		$	.47			$	.39				$	1.89			$	1.52
Diluted		$	.47			$	.39				$	1.89			$	1.52
Average Common Shares Outstanding
Basic			93,550				93,353					93,429				93,347
Diluted			93,666				93,618					93,630				93,608
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/20240626526291/en/

Office of the Chairman, Grace Keene

877-NBC-FIZZ

www.nationalbeverage.com

Source: National Beverage Corp.

FAQ

What were National Beverage Corp's Q4 2024 earnings?

National Beverage Corp reported Q4 2024 earnings with net income of $44 million, or $0.47 per share.

How much did National Beverage Corp's net sales increase in Q4 2024?

National Beverage Corp's net sales increased by $11 million to $297 million in Q4 2024.

What is the net income growth for National Beverage Corp in FY 2024?

National Beverage Corp's net income grew by 24% to $177 million, or $1.89 per share, in FY 2024.

How did National Beverage Corp's gross margins change in Q4 2024?

Gross margins for National Beverage Corp increased by 100 bps to 36.7% of sales in Q4 2024.

What brands contributed to National Beverage Corp's volume growth?

The brands LaCroix and Rip It contributed to National Beverage Corp's 5% volume growth.

What was the increase in cash reserves for National Beverage Corp in FY 2024?

National Beverage Corp's cash reserves increased by $169 million, reaching $327 million in FY 2024.

Did National Beverage Corp achieve record results in Q4 2024?

Yes, National Beverage Corp achieved record results in Q4 2024, with significant increases in net sales, gross margins, and net income.

What new products did National Beverage Corp introduce in Q4 2024?

National Beverage Corp introduced Mojito LaCroix, new Rip It energy fuel flavors, and Shasta Zero Sugar in Q4 2024.