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BellRing Brands (NYSE:BRBR) released its second quarter fiscal year 2025 supplemental presentation on May 5, showcasing strong performance across its protein shake portfolio, particularly for its flagship Premier Protein brand. The presentation highlights come amid recent market volatility, with the stock dropping 31.92% to $36.52 on August 5 following its Q3 earnings release, despite beating analyst expectations.
Executive Summary
BellRing’s Q2 FY2025 results demonstrated robust growth in the convenient nutrition category, which expanded by 12% overall. The ready-to-drink (RTD) segment led this growth with a 19% increase, while ready-to-mix (RTM) products maintained healthy growth as well.
Premier Protein, the company’s leading brand, achieved several notable milestones during the quarter. The RTD shake line posted 25% dollar growth compared to Q2 FY2024, reached all-time highs in distribution and household penetration (20.9%), and attained a new RTD category market share high of 30% in March.
As shown in the following executive summary from the presentation:
Premier Protein Performance
Premier Protein RTD shakes demonstrated impressive consumption growth across all retail channels. The brand showed particularly strong performance in food retailers, where it grew 67.5% over the 13-week period. Other channels also posted substantial gains: Club (+18.1%), Mass (+20.9%), and eCommerce (+30.2%).
The following chart details Premier Protein’s performance across various retail channels:
This growth represents an acceleration from previous quarters, with Q2 FY2025 showing 25% year-over-year growth, up from 23% in Q1 FY2025. The consistent upward trajectory suggests strong consumer demand for the product.
The consumption growth trend is clearly illustrated in this chart from the presentation:
Distribution and Household Penetration
A key driver of Premier Protein’s success has been its expanding distribution network. Total (EPA:TTEF) Distribution Points (TDPs) reached an all-time high during the quarter, indicating broader availability of the product across retail locations.
Household penetration for Premier Protein has steadily increased from 16.4% to 19.9%, showing the brand’s growing consumer base. Importantly, repeat purchase rates remained strong at around 50-51%, while the average buy rate increased from $75 to $94, suggesting both customer loyalty and increased spending per customer.
The following chart illustrates these key consumer metrics:
Category and Channel Analysis
The broader convenient nutrition category continues to show strong momentum, with RTD products leading the growth at 19% for the last 13 weeks and 17% for the last 52 weeks. This growth has been driven primarily by volume increases (+13% L13, +14% L52) with price/mix contributing to a lesser extent (+6% L13, +3% L52).
The ready-to-mix segment also maintained healthy growth at 10% for L13 and 9% for L52, almost entirely driven by volume increases rather than pricing.
The following chart shows the category growth trends:
Premier Protein’s powder products also performed well, with 22% overall growth. The expansion into the club channel drove particularly strong results, with 100% growth in that segment. Other channels showed solid performance as well: Mass (+8.3%), eCommerce (+11.4%), and Food (+15.1%).
The channel breakdown for Premier Protein powder products is shown here:
Dymatize Brand Performance
BellRing’s Dymatize brand showed mixed results during the quarter. Overall consumption grew by 3.0% over the 13-week period, reversing the 52-week trend of -7.5%. This growth was primarily driven by strong eCommerce performance (+18.8%), while other channels experienced declines: Mass (-3.9%), Specialty/All Other (-11.2%), Food (-7.7%), and Club (-3.8%).
The following chart details Dymatize’s performance across channels:
Despite these mixed channel results, Dymatize reached the #4 powder share position in the sports nutrition category, and its distribution points also reached an all-time high during the quarter.
Market Context and Forward Outlook
BellRing’s strong Q2 performance contrasts with the recent market reaction to its Q3 earnings. Despite beating analyst expectations with Q3 EPS of $0.55 (vs. forecast $0.50) and revenue of $547.5 million (vs. forecast $531.12 million), the stock experienced a significant decline following the earnings announcement.
This disconnect may reflect broader market concerns about increased competition in the RTD protein market, as CEO Darcy Davenport acknowledged in the Q3 earnings call, stating, "Success attracts competition, so it is not surprising to see new protein RTDs enter the category."
The company’s guidance for fiscal 2025 projects net sales between $2,280 million and $2,320 million and adjusted EBITDA between $480 million and $490 million, representing 14-16% top-line growth. Management remains confident in its long-term growth algorithm of 10-12% annually, supported by the continued expansion of household penetration, which currently stands at only 20% despite selling "36 shakes per second."
As BellRing navigates an increasingly competitive landscape, its strong brand positioning and distribution expansion provide a solid foundation for continued growth, though investors appear to be weighing potential challenges ahead against the company’s strong recent performance.
Full presentation:
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