BellRing Brands Reports Results for the Fourth Quarter and Fiscal Year 2020
St. Louis - November 19, 2020 - BellRing Brands, Inc. (NYSE:BRBR) (“BellRing”), a holding company operating in the global convenient nutrition category, today reported results for the fourth quarter and fiscal year ended September 30, 2020.
•Fourth quarter net sales of $282.6 million; operating profit of $49.0 million; net earnings available to Class A common stockholders of $10.0 million and Adjusted EBITDA of $56.7 million
•Fiscal year net sales of $988.3 million; operating profit of $164.0 million; net earnings available to Class A common stockholders of $23.5 million and Adjusted EBITDA of $197.2 million
•Fiscal year 2021 net sales and Adjusted EBITDA expected to grow 8%-13% and 5%-10%, respectively, over fiscal year 2020 (resulting in a net sales range of $1.07-$1.12 billion and an Adjusted EBITDA range of $207-$217 million)
Fourth Quarter Operating Results
Net sales were $282.6 million, an increase of 31.7%, or $68.1 million, compared to the prior year period. Premier Protein net sales increased 37.2%, with volumes up 40.6%, and Premier Protein ready-to-drink (“RTD”) shake net sales increased 39.8%, with volumes up 46.2%. Premier Protein net sales benefited from RTD shake distribution gains for both existing and new products, incremental promotional activity and lapping a reduction in customer trade inventory levels in the prior year period. Additionally, net sales benefited from an increase in customer trade inventory levels, as RTD shake shipments exceeded consumption driven by certain promotional events and retailer shelf resets that occurred early in the first quarter of 2021. Dollar consumption of Premier Protein RTD shakes increased 20% in the 13-week period ended September 26, 2020 as compared to the same period in 2019 (inclusive of Nielsen Total US xAOC including Convenience and management estimates of untracked channels).
Dymatize net sales increased 14.5%, with volumes increasing 22.1%, as strong growth in eCommerce and in the mass and club channels were partially offset by declines in international. PowerBar net sales increased 1.0%, with volumes declining 13.6%. Dymatize and PowerBar net sales improved when compared to the third quarter of 2020, but the international business continued to be negatively impacted by changes in consumer behavior (primarily lower on-the-go consumption) in response to the COVID-19 pandemic.
Gross profit was $89.8 million, or 31.8% of net sales, an increase of 17.1%, or $13.1 million, compared to the prior year period gross profit of $76.7 million, or 35.8% of net sales. The lower gross profit margin was driven by anticipated higher input costs (predominantly milk-based proteins for RTD shakes) and lower average net selling prices, resulting from incremental promotional activity.
Selling, general and administrative (“SG&A”) expenses were $35.2 million, or 12.5% of net sales, an increase of $0.1 million compared to the prior year period SG&A expenses of $35.1 million, or 16.4% of net sales. SG&A expenses included $3.1 million higher employee-related expenses and $1.8 million incremental public company costs (inclusive of stock-based compensation), which were partially offset by $2.7 million lower costs related to BellRing’s separation from Post Holdings, Inc. (“Post”). Separation costs were treated as adjustments for non-GAAP measures.
Operating profit was $49.0 million, an increase of 36.1%, or $13.0 million, compared to the prior year period operating profit of $36.0 million.
Interest expense, net was $13.5 million and primarily related to debt borrowed in connection with the creation of BellRing’s capital structure in the first quarter of 2020. No interest expense was recorded in the prior year period.
Income tax expense was $0.0 million in the fourth quarter of 2020, an effective income tax rate of 0.0%, compared to $9.3 million in the fourth quarter of 2019, an effective income tax rate of 25.8%. In the fourth quarter of 2020, the effective income tax rate differed significantly from the statutory rate as a result of (i) taking into account for U.S. federal, state and local income
The following information was filed by Bellring Brands, Inc. (BRBR) on Thursday, November 19, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.