BellRing Brands – the producer of Premier Protein and Dymatize brands – this week reported Q1 2024 net sales of $430.4 million, up 18.7% year-over-year, as it continues to grow and diversify its portfolio of protein shakes and powder supplements.
Here’s the top-level view:
- Operating profit for the quarter ended December 31 was $73 million and net earnings were $43.9 million.
- Premier Protein saw net sales climb 18.9%, fueled by a 19.5% increase in volume and a -0.6% decrease in price/mix.
- Dymatize reported a 20.9% jump in net sales in Q1, with 32.4% volume growth and a -11.5% drop in pricing.
- Gross profit in the quarter was $148 million, or 34.4% of net sales, an increase of 21.5% or $26.2 million.
“Our first quarter performance was strong, coming in ahead of our expectations as we continued to ramp up our shake supply and began to drive demand,” said Darcy Davenport, BellRing president and CEO, in a prepared statement. “Premier Protein drove the outperformance as some customers chose to improve trade inventories as they headed into the ‘New Year, New You’ season.”
During today’s earnings call, Davenport told investors that BellRing’s overall sales benefited from an improved supply chain and distribution gains for Premier Protein, its core brand that includes ready-to-drink (RTD) shakes and powders in addition to protein-packed pancakes and cereal.
RTD sales led the convenient nutrition category, up 16%. Increased supply and distribution expansion lifted RTD growth in Q1, while growth in ready-to-mix remained healthy despite lapping “significant” price increases, according to the brand.
Mass and ecommerce saw the highest channel growth, with the former benefiting from higher in-stock levels and distribution gains while ecommerce was supported by promotional activity, according to Davenport. He noted that although opportunity lies in c-stores, it is a lower priority, as the channel only represents roughly 10% of business.
Additionally, Premier Protein saw “continued excitement” around its seasonal flavors, the latest of which is Winter Mint Chocolate. January consumption growth was at 34%, lifted by incremental promotional activity in tracked channels.
Elsewhere, Dymatize’s lineup of protein powders experienced record-high household penetration while consumption grew 16%, outpacing the category. The brand is now gearing up to launch its new “Formulated for More” national campaign, set to debut in Q2, in partnership with NFL All-Pro running back Christian McAffrey of the San Francisco 49ers.
“We are eager to see the impact this type of enhanced digital marketing and top tier influencer will have on our brand awareness and household penetration,” said Davenport.
Also in Q1, BellRing opened its second greenfield co-manufacturing facility at Michael Foods, which will continue scaling up over the next 12 months. According to Davenport, the company remains on track to grow production north of 20% this year.
However, BellRing anticipates that demand and supply of its shakes will “remain tight” for most of the year. When asked by an investor whether the company can meet heightened demand levels, Davenport expressed confidence in BellRing’s ability to navigate the situation.
“We now have a network that is much more robust than we’ve ever had before,” Davenport told investors. “Suffice it to say we are talking to every single one of our co-mans to see if we can get incremental supply.”
Looking ahead, the parent company of Premier Protein and Dymatize has upgraded its FY 2024 net sales outlook to $1.87 billion to $1.95 billion and its adjusted EBITDA outlook to $375 milllion to $400 million.