Bellring Brands Reins In Sales Bets As Rtd Shakes Competition Intensifies

BellRing Brands Premier Protein brand. Credit: The Image Party / Shutterstock

BellRing Brands has lowered its semipermanent income maturation projection, partially citing accrued title successful nan RTD beverage shingle category.

The Premier Protein shakes and Dymatize macromolecule powders business besides pointed to a much subdued outlook for gross maturation successful nan caller fiscal twelvemonth and said adjusted EBITDA figures would apt beryllium beneath 2025’s print.

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Presenting results this week for nan twelvemonth to 30 September, BellRing Brands’ president and CEO Darcy Davenport noted nan gait astatine which nan Missouri-based company’s income person grown since it went nationalist successful 2019 – from $850m to extremity fiscal 2025 astatine $2.32bn. Premier Protein’s income revenues, meanwhile, had “tripled”, she said.

“Since IPO, we person delivered a nett income CAGR of 18%, importantly up of our semipermanent gross maturation projection of 10-12% shared astatine nan clip of our listing,” Davenport told analysts connected a follow-up call.

“There are aggregate ways to execute beardown maturation successful our business. However, it becomes much difficult to turn astatine double-digit rates disconnected a larger gross base, and successful nan adjacent term, we are expecting a much competitory environment.”

The semipermanent income outlook has now been adjusted from debased double digits to precocious azygous digits, aliases much precisely 7-9%, she added, and Premier Protein will beryllium nan cardinal driver.

“This assumes that Premier Protein, nan number 1 market-share brand, will proceed to turn comparatively successful statement pinch nan RTD category, while Dymatize somewhat weighs down our maturation rate,” Davenport explained.

Projections for nan adjusted EBITDA separator stay unchanged astatine 18-20% complete nan agelong term, a level that “embeds higher levels of marque finance enabled by our costs savings agenda”, she said, adding: “These investments are designed to reenforce our marque strengths and position america for sustained profitable maturation complete nan agelong term.”

In nan 2025 financial year, group income roseate 16.1% to $2.32bn pinch a 14.7% summation successful measurement and 1.4% successful price/mix. Premier Protein income climbed 16.8%, driven by a 14.6% summation successful measurement and 2.2% successful price/mix. Dymatize nett income were up 13.3%.
Adjusted EBITDA accrued 9.4% to $481.6m.

Sales maturation for 2026 is expected astatine 4-8%, corresponding to figures of $2.41-2.49bn. The adjusted EBITDA outlook has been group astatine $425-455m.

“At nan midpoint, income for nan twelvemonth are expected to beryllium modestly beneath our semipermanent algorithm because of nan softer first quarter, driven by circumstantial items and near-term competitory dynamics,” Davenport said. “We expect capacity to fortify pinch nan remainder of nan twelvemonth astatine nan top-end of our algorithm.”

Similarly, nan adjusted EBITDA separator for nan caller twelvemonth is besides apt to travel successful astatine nan little extremity of nan longer-term range, “primarily owed to important commodity ostentation and tariffs, on pinch nan lagged gross effect of accrued marque investments”, she added.

CFO Paul Rode provided immoderate penetration into nan separator pressures.

“Our adjusted EBITDA separator algorithm besides now incorporates nan effect of tariffs. As antecedently communicated, tariffs will statesman to effect our P&L starting successful fiscal 2026.

“While we person mitigated overmuch of our tariff exposure, we do expect an ongoing annualised effect to our margins of astir 120 ground points.”

More broadly, BellRing Brands expects to use from nan expanding request for better-for-you RTD shakes, which, Davenport said, are “one of nan fastest-growing CPG categories, fuelled by user wellness and wellness trends, functional beverage preferences, and GLP-1 usage”.

The CEO continued: “Over time, we expect retailers to consolidate nan support down a fistful of nan best-performing brands and move them to much heavy trafficked aisles.

“We judge that mainstream appeal, precocious repetition rates, and execution capabilities will find nan semipermanent winners. Premier Protein is well-positioned to use from these developments and proceed to lead nan category.”