BellRing Brands, Inc. Q4 FY2025 earnings call

Fiscal Year '25 Highlights - Net sales grew 16%, adjusted EBITDA margin 20.8%. - Launched media campaign since 2021, expanded distribution, advanced innovation and savings programs. - Stepped up share repurchases, buying ~7% of shares outstanding. ### Fourth Quarter Insights - RTD shake category grew 15%, Premier shake consumption 20% from promotions. - Category is fast-growing with 54% household penetration but faces competition; legacy brands losing share. ### 2026 Outlook - Net sales guidance 4%-8% growth, adjusted EBITDA margin 18%. - Priorities: Grow distribution (bolster club channel, expand TDP in other channels), increase advertising investment, launch innovation. ### Operating Plans 2026 - Distribution: Bolster club channel with new products, sampling, promo spending; expand TDP in mass, food, drug, e-commerce. - Advertising: Launch new creative campaign in late December with national TV and digital components. - Innovation: Launch almond milkshakes, Coffeehouse shakes, and continue flavor innovation.

In the fourth quarter, the ready-to-drink shake category grew 15%. Premier shake consumption grew 20% due to incremental promotion events. Premier has category-leading metrics like #1 household penetration and the highest repeat rate. Dymatize net sales grew 33% in fiscal '25, driven by strong volumes. International benefited from strong consumption and volume pull forward ahead of late Q1 price increase. Revenue contribution: Premier Protein is a key segment with significant growth, while Dymatize and international also contribute.

Fiscal '26 Guidance - Net sales guidance: 4%-8% growth. - Adjusted EBITDA margin: 18%. - Q1 expected: ~5% net sales decrease due to tough comparisons, but rest of year stronger. - Long-term targets: Updated net sales growth algorithm to 7%-9% (from low double digits), maintained adjusted EBITDA margin algorithm 18%-20%.

• Competition: Increased competition from insurgent and legacy brands impacting market share and shelf space. - Tariffs: Tariffs beginning in fiscal '26 with ongoing annualized impact of ~120 basis points on margins. - Commodity Inflation: Protein costs, especially on powders, continuing as a headwind into fiscal '26.

Q: Summarize observed changes and influence on '26 plans and long-term views A: Darcy notes category momentum and Premier's position remain, but increased competition. Q1 is tough due to comparisons, but rest of the year strong with growth drivers like partnerships, advertising, and innovation Q: Clarity on repeat rates and shelf set at largest club customer A: Darcy says major club customer will keep expanded assortment, monitoring insurgent brands with shakeout expected. Rest of business strong Q: Club channel impact on growth A: Growth largely from outside club channel, with FDM, mass, drug, e-commerce channels showing stronger growth. Club comparisons ease later in the year Q: EBITDA margin decline breakdown A: Paul explains ~280 basis point decline includes tariffs (~80 basis points), gross margin pressure, and advertising headwind, offset partially by SG&A leverage Q: Insurgent brands' potential A: Darcy says insurgent brands face challenges in expanding nationally, with consolidation expected around successful brands, including Premier Q: Pricing and promotional activity A: Paul discusses pricing impact on Dymatize and mix effects, Darcy mentions slight promotion step-up in '26, especially in FDM with merchandising expansion Q: Long-term strategy and M&A A: Darcy emphasizes focus on RTD shakes and powders, using licensing for other categories. Paul states capital allocation priorities include investing in business, share repurchases, and monitoring M&A Q: RTD category segmentation and innovation A: Darcy explains category maturing with different consumer preferences, Premier focusing on core 30-gram shake and launching innovations like almond milkshakes to target incremental needs Q: Shakeout timeline for insurgent brands A: Darcy says insurgent brands will have churn, with leading brands like Premier continuing to win, legacy brands declining, and consolidation expected over time Q: Fifth pallet transition at large club customer A: Darcy states it was temporary, phasing out in Q2