Nutrition products company Bellring Brands (NYSE:BRBR) beat Wall Street’s revenue expectations in Q4 CY2024, with sales up 23.8% year on year to $532.9 million. The company expects the full year’s revenue to be around $2.3 billion, close to analysts’ estimates. Its non-GAAP profit of $0.58 per share was 21.2% above analysts’ consensus estimates.
Is now the time to buy BellRing Brands? Find out by accessing our full research report, it’s free.
BellRing Brands (BRBR) Q4 CY2024 Highlights:
- Revenue: $532.9 million vs analyst estimates of $526.4 million (23.8% year-on-year growth, 1.2% beat)
- Adjusted EPS: $0.58 vs analyst estimates of $0.48 (21.2% beat)
- Adjusted EBITDA: $125.3 million vs analyst estimates of $108.9 million (23.5% margin, 15.1% beat)
- The company slightly lifted its revenue guidance for the full year to $2.3 billion at the midpoint from $2.28 billion
- EBITDA guidance for the full year is $485 million at the midpoint, above analyst estimates of $480 million
- Operating Margin: 21.6%, in line with the same quarter last year
- Organic Revenue rose 23.8% year on year (18.7% in the same quarter last year)
- Sales Volumes rose 20.8% year on year (19% in the same quarter last year)
- Market Capitalization: $9.98 billion
Company Overview
Spun out of Post Holdings in 2019, Bellring Brands (NYSE:BRBR) offers protein shakes, nutrition bars, and other products under the PowerBar, Premier Protein, and Dymatize brands.
Shelf-Stable Food
As America industrialized and moved away from an agricultural economy, people faced more demands on their time. Packaged foods emerged as a solution offering convenience to the evolving American family, whether it be canned goods or snacks. Today, Americans seek brands that are high in quality, reliable, and reasonably priced. Furthermore, there's a growing emphasis on health-conscious and sustainable food options. Packaged food stocks are considered resilient investments. People always need to eat, so these companies can enjoy consistent demand as long as they stay on top of changing consumer preferences. The industry spans from multinational corporations to smaller specialized firms and is subject to food safety and labeling regulations.
Sales Growth
Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul.
With $2.10 billion in revenue over the past 12 months, BellRing Brands is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage. On the other hand, it can grow faster because it’s working from a smaller revenue base and has a longer runway of untapped store chains to sell into.
As you can see below, BellRing Brands’s 18.2% annualized revenue growth over the last three years was impressive as consumers bought more of its products.
This quarter, BellRing Brands reported robust year-on-year revenue growth of 23.8%, and its $532.9 million of revenue topped Wall Street estimates by 1.2%.
Looking ahead, sell-side analysts expect revenue to grow 12.2% over the next 12 months, a deceleration versus the last three years. Despite the slowdown, this projection is commendable and indicates the market is factoring in success for its products.
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
Volume Growth
Revenue growth can be broken down into changes in price and volume (the number of units sold). While both are important, volume is the lifeblood of a successful staples business as there’s a ceiling to what consumers will pay for everyday goods; they can always trade down to non-branded products if the branded versions are too expensive.
To analyze whether BellRing Brands generated its growth from changes in price or volume, we can compare its volume growth to its organic revenue growth, which excludes non-fundamental impacts on company financials like mergers and currency fluctuations.
Over the last two years, BellRing Brands’s average quarterly volume growth of 21.2% has outpaced the competition by a long shot. In the context of its 21.3% average organic revenue growth, we can see that most of the company’s gains have come from more customers purchasing its products.
In BellRing Brands’s Q4 2025, sales volumes jumped 20.8% year on year. This result was in line with its historical levels.
Key Takeaways from BellRing Brands’s Q4 Results
We were impressed by how significantly BellRing Brands blew past analysts’ EPS and EBITDA expectations this quarter. We were also glad its revenue and gross margin outperformed Wall Street’s estimates. The cherry on top was that it raised its full-year revenue and EBITDA guidance. Overall, we think this was a splendid "beat-and-raise" quarter. The stock traded up 3.5% to $80.88 immediately following the results.
BellRing Brands put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free.
