LaCroix sparkling water maker National Beverage Corp. struggled to meaningfully grow in Q1 of FY 2026, with dollar sales rising only 0.3% to just under $331 million.
According to a Form 10-Q filing from last week, the results largely stemmed from a 4.4% improvement in price/mix, which was offset by a 3.9% decline in case volume. Interest income fell $2.1 million compared to the year before due to lower invested cash balances.
The quarter, which ended August 2, saw National Beverage’s operating income increase to $71 million while gross profit improved 80 basis points to $125 million, up from $122.4 million the year before.
“Our solid operating performance amid the challenging global environment, marked by uncertainty in consumer spending and geopolitical events, reflects the strength of our brands and the success of Team National’s management strategy,” a company spokesperson said in a statement. “We continue to generate exceptional operating cash flows while maintaining one of the strongest balance sheets among our beverage peers.”
For LaCroix, the company said that organic sales grew in the club channel with its Deliciously Magical variety pack featuring three “fan favorite” flavors, while four other recently released flavors “have posted impressive initial sales, and we anticipate greater increases in the near term.”
Selling and general expenses rose by about $1.8 million in the quarter to $54.7 million, up from $52.9 million in Q1 FY2025.
“Innovation has always set us apart. True to our brand trust of remaining Innocent, we do not try to reinvent ourselves when new trends unfold,” the spokesperson said. “We will remain focused on developing exciting new flavors and products that delight our consumers, while safeguarding the investments of our shareholders.”
“Like many companies, our first quarter of 2026 parallels the uncertainties of today’s global economy, but we remain confident that our proven track record of innovation, coupled with disciplined management, will enable us to successfully navigate current world challenges and continue delivering strong results and long-term value,” they added.