National Beverage Directors Re-Elected Amid ESG Proposal Rejection

FORT LAUDERDALE, FL – National Beverage Corp. (NASDAQ:FIZZ), a leading developer and marketer of carbonated beverages, announced the outcome of its Annual Meeting of Shareholders held on October 4, 2024. The company reported on the re-election of two Class I Directors and the rejection of a shareholder proposal for an annual Environmental, Social, and Governance (ESG) report.

The shareholders re-elected Mr. Joseph G. Caporella with 87,806,498 votes in favor and Mr. Samuel C. Hathorn, Jr. with 72,800,960 votes in favor. The votes withheld for the directors were 2,507,856 for Mr. Caporella and 17,513,394 for Mr. Hathorn, Jr.

A significant focus of the meeting was the shareholder proposal for National Beverage to prepare and disclose a comprehensive ESG report annually. However, the proposal did not pass, with 14,602,447 votes for, 75,584,152 votes against, and 127,755 abstentions. The proposal's defeat indicates that a majority of shareholders did not support the call for enhanced transparency on ESG matters at this time.

The company stated that there were no broker non-votes for any of the matters voted upon during the meeting. This detail suggests that all votes were duly cast by shareholders without any need for brokers to cast votes on behalf of shareholders who did not provide specific instructions.

The results of the meeting are based on a press release statement and reflect the shareholders' decisions on the governance of the company and its approach to ESG reporting. National Beverage Corp., known for its iconic brands and innovative packaging, has not provided further comments on the implications of the voting results.

In other recent news, National Beverage Corp. has experienced a series of notable developments. CFRA has increased the price target for the company to $50 from $45, while maintaining a hold rating on the stock. This adjustment is based on a forward P/E of 24.4x for the fiscal year ending April 2026, slightly below the company's five-year average forward P/E of 25.7x. The firm's EPS estimates remain steady at $1.95 for FY 2025 and $2.05 for FY 2026.

National Beverage reported earnings per share of $0.47 for the April quarter, a 20% increase from the same quarter of the previous year. The company's net sales also saw a rise, climbing 3.7% to $297.3 million, surpassing consensus by $6.3 million. Additionally, the company announced a special cash dividend of $3.25 per share, marking its twelfth payout in two decades.

National Beverage has also formed a partnership with Major League Soccer team Inter Miami CF, becoming the official sparkling water of the club. Furthermore, the company has expanded its product range with the introduction of a new LaCroix flavor, Mojito. These recent developments underscore National Beverage Corp.'s dedication to financial growth and community engagement.

InvestingPro Insights

National Beverage Corp.'s recent shareholder meeting results can be viewed alongside some key financial metrics provided by InvestingPro. The company's market capitalization stands at $4.18 billion, reflecting its significant presence in the beverage industry.

InvestingPro data shows that National Beverage has a P/E ratio of 22.72, indicating that investors are willing to pay a premium for the company's earnings. This could be attributed to the company's strong financial position, as highlighted by one of the InvestingPro Tips: "Holds more cash than debt on its balance sheet." This financial stability might have influenced shareholders' confidence in re-electing the current directors.

Another relevant InvestingPro Tip states that the company has been "Profitable over the last twelve months," with a reported revenue of $1.19 billion in the last twelve months as of Q1 2025. This profitability, combined with the company's "High return over the last decade," as noted in another tip, may have contributed to shareholders' satisfaction with the current management and their decision to reject the ESG reporting proposal.

It's worth noting that InvestingPro offers 5 additional tips for National Beverage Corp., providing investors with a more comprehensive analysis of the company's financial health and market position. These insights could be particularly valuable for understanding the long-term implications of the recent shareholder decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.