National Beverage Corp., the maker of LaCroix, reported today that net sales increased 8% to $272 million in the second quarter of fiscal year 2021.
Gross margin was $108 million in the quarter, which ended October 31, up 16.4% year-over-year. Operating profit increased to 22.7% of sales, up from 16.6% last year while net income grew 44% to $47.2 million, or $1.01 per share.
For the trailing 12 months, net sales increased 7.6% to just over $1 million. Earnings per share improved 36.8% to $3.46 while cash on hand grew from $172 million last year to $405 million.
“National Beverage is committed to bringing joy and good tidings to America, especially during these trying times,” a company spokesperson said in a statement. “Each and every day, we diligently attempt to refresh our loyal consumers with feel-good, creative innovations in taste, unique flavors and eye-catching packaging.”
The results close out a calendar year that has seen LaCroix regain its footing in the market after a tumble in 2019 led to months of sliding sales amid rising competition in the sparkling water category. According to market research firm Nielsen, National Beverage Corp. reported 13.9% dollar sales growth to $527.3 million for the 52-week period ending November 14, with volume sales up 15.1% in the same period.
As beverage conglomerates such as PepsiCo (Bubly), The Coca-Cola Company (AHA, Topo Chico), Nestlé (Perrier, S. Pellegrino) and Keurig Dr Pepper (Polar Seltzer and Limitless) grow their market share in the sparkling water space, LaCroix has sought to continue to differentiate itself through flavor innovations with new LimonCello and watermelon “Pasteque” varieties launching earlier this year.
National Beverage’s stock price was down 4.09% to $84.40 per share at the close of the market today, continuing a decline from a yearly high of $99.01 per share on December 2.
Last week, the company announced it would provide shareholders of record with an extra $3 per share for a total payout of $6 per share payable on or before February 2.
“After considerable self-examination with all that has transpired this year of 2020, it was a heartfelt decision to increase this extraordinary distribution to allow each recipient more than they may have originally expected,” a spokesperson said in a statement. “Additionally, the economic atmosphere that is affecting our country also persuaded us to increase this special dividend. We hope this Christmas spirit now upon us and the Thanksgiving celebration of recent days will help to brighten this season we have come to honor and respect. We certainly hope so.”