ST. LOUIS, Aug. 04, 2026 (GLOBE NEWSWIRE) -- BellRing Brands, Inc. (NYSE:BRBR) ("BellRing"), a holding company operating in the global proactive wellness category, today reported results for the third fiscal quarter ended June 30, 2026.
Highlights:
-- Third quarter net sales of $570.4 million, up 4% year-over-year
-- Operating profit of $65.4 million, net earnings of $34.2 million and
Adjusted EBITDA* of $78.3 million, each of which included a pre-tax $10
million inventory-related charge
-- Updated fiscal year 2026 net sales outlook of $2.335-$2.375 billion and
Adjusted EBITDA* outlook of $275-$295 million, inclusive of full year
pre-tax $28 million unfavorable impact of inventory-related actions
(*Adjusted EBITDA is a non-GAAP measure. For additional information regarding non-GAAP measures, see the related explanations presented under "Use of Non-GAAP Measures" later in this release. BellRing provides Adjusted EBITDA guidance only on a non-GAAP basis and does not provide a reconciliation of its forward-looking Adjusted EBITDA non-GAAP guidance measure to the most directly comparable GAAP measure due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, including the adjustments described under "Outlook" later in this release.)
"I am honored to lead BellRing into its next chapter of growth and value creation in a category with attractive long-term fundamentals," said Michael Axelrod, President and Chief Executive Officer of BellRing, effective July 29, 2026. "Premier Protein is the clear leader in ready-to-drink shakes backed by a powerful brand and deep consumer loyalty. We have a strong foundation and meaningful opportunity to strengthen execution, reinforce our market leadership and deliver more consistent, profitable growth over time. As I begin meeting with our employees, customers and partners, I am energized by the talent across the organization and confident in our ability to create long-term value for shareholders."
"Our third quarter revenue exceeded our expectations, driven by strong performance from both Premier Protein and Dymatize," said Paul Rode, Chief Financial Officer of BellRing. "While profitability was impacted by inventory-related charges and continued input cost pressures, the underlying demand trends for our brands remain healthy. Our updated fiscal 2026 outlook reflects these factors, and we are taking decisive actions through pricing, productivity initiatives and disciplined cost management to improve profitability while continuing to invest behind our brands to support long-term growth."
Third Quarter Consumption Trends
Dollar consumption of Premier Protein ready-to-drink ("RTD") shakes increased 6.0%, Premier Protein powder products decreased 4.2% and Dymatize powder and RTD products increased 2.7% in the 13-week period ended June 28, 2026, as compared to the same period in 2025 (inclusive of Circana United States ("U.S.") Multi Outlet Plus with Convenience and management estimates of untracked channels). For additional information regarding consumption metrics, see the supplemental presentation on BellRing's website, which can be accessed by visiting the Investor Relations section.
Third Quarter Operating Results
Net sales were $570.4 million, an increase of 4.2%, or $22.9 million, compared to the prior year period, driven by 1.7% increase in volume and 2.5% increase in price/mix.
Premier Protein net sales increased 0.7%, driven by 1.5% increase in volume and 0.8% decrease in price/mix. Premier Protein RTD shake net sales increased 1.2%, driven by 3.1% increase in volume and 1.9% decrease in price/mix. Volume gains were driven by distribution gains. Price/mix was negatively impacted by incremental promotional investment.
Dymatize net sales increased 26.7%, driven by 6.0% increase in volume and 20.7% increase in price/mix. Net sales benefited from higher average net selling prices in connection with inflation-driven price increases and international distribution gains.
Gross profit was $163.3 million, or 28.6% of net sales, a decrease of $30.3 million, compared to $193.6 million, or 35.4% of net sales, in the prior year period. Adjusted gross profit* was $157.9 million, or 27.7% of net sales, a decrease of $34.5 million, compared to $192.4 million, or 35.1% of net sales in the prior year period. In the third quarter of 2026, gross profit and adjusted gross profit were impacted by significant input cost inflation (inclusive of tariffs) and higher freight. In addition, gross profit and adjusted gross profit were impacted by a $10.0 million charge for excess shake bottle inventory; this reflected a 180 unfavorable basis point impact to gross margin and adjusted gross margin.
(*Adjusted gross profit and adjusted gross profit margin are non-GAAP measures that exclude mark-to-market adjustments on commodity hedges. For additional information regarding non-GAAP measures, see the related explanations presented under "Use of Non-GAAP Measures" later in this release.)
Selling, general and administrative ("SG&A") expenses were $93.7 million, or 16.4% of net sales, a decrease of $50.8 million compared to $144.5 million, or 26.4% of net sales, in the prior year period. SG&A expenses included $5.4 million in reorganization charges in the third quarter of 2026 and a $68.1 million provision for legal matters in the third quarter of 2025, both of which were treated as adjustments for non-GAAP measures. Marketing and consumer advertising expenses were $23.1 million, an increase of $6.7 million compared to the prior year period, driven by increased Premier Protein spend.
Operating profit was $65.4 million, an increase of $20.6 million, compared to $44.8 million in the prior year period with reduced SG&A expenses partly offset by lower gross profit.
Interest expense, net was $19.9 million and $18.4 million in the third quarter of 2026 and 2025, respectively, with the increase primarily driven by higher outstanding borrowings under BellRing's revolving credit facility. Income tax expense was $11.3 million in the third quarter of 2026 compared to $5.4 million in the third quarter of 2025. The effective income tax rate was 24.8% and 20.5% in the third quarter of 2026 and 2025, respectively, with the increase primarily attributable to discrete tax benefits recognized in the prior year period.
Net earnings were $34.2 million, an increase of $13.2 million, compared to $21.0 million in the prior year period, and were impacted by the current year $10.0 million excess inventory charge. Net earnings per diluted common share were $0.29 compared to $0.16 in the prior year period. Adjusted net earnings* were $35.0 million, a decrease of $35.8 million, compared to $70.8 million in the prior year period. Adjusted diluted earnings per common share* were $0.30 compared to $0.55 in the prior year period.
Adjusted EBITDA* was $78.3 million, a decrease of $42.0 million, compared to $120.3 million in the prior year period, and was impacted by the current year $10.0 million excess inventory charge.
(*Adjusted net earnings, Adjusted diluted earnings per common share and Adjusted EBITDA are non-GAAP measures. For additional information regarding non-GAAP measures, see the related explanations presented under "Use of Non-GAAP Measures" later in this release.)
Nine Month Operating Results
Net sales were $1,706.4 million, an increase of 2.3%, or $38.0 million, compared to the prior year period, driven by 4.7% increase in volume and 2.4% decrease in price/mix. Premier Protein net sales increased 0.4%, driven by 4.6% increase in volume and 4.2% decrease in price/mix. Premier Protein RTD shake net sales increased 0.5%, driven by 5.2% increase in volume and 4.7% decrease in price/mix. Dymatize net sales increased 13.7%, driven by 9.0% increase in volume and 4.7% increase in price/mix.
Gross profit was $485.8 million, or 28.5% of net sales, a decrease of $97.2 million, compared to $583.0 million, or 34.9% of net sales, in the prior year period. Adjusted gross profit* was $454.7 million, or 26.6% of net sales, a decrease of $138.5 million, compared to $593.2 million, or 35.6% of net sales in the prior year period. In the nine months ended June 30, 2026, gross profit and adjusted gross profit were impacted by significant input cost inflation (inclusive of tariffs), unfavorable price/mix and higher freight. In addition, gross profit and adjusted gross profit were impacted by a $10.0 million charge for excess bottle inventory recorded in the third quarter and an $11.3 million inventory-related charge recorded in the second quarter associated with a third-party supplied ingredient that did not meet BellRing's quality requirements (the combination of which represented an unfavorable 120 basis point impact to gross profit margin and adjusted gross profit margin.)
(*Adjusted gross profit and adjusted gross profit margin are non-GAAP measures that exclude mark-to-market adjustments on commodity hedges. For additional information regarding non-GAAP measures, see the related explanations presented under "Use of Non-GAAP Measures" later in this release.)
SG&A expenses were $263.2 million, or 15.4% of net sales, a decrease of $51.9 million, compared to $315.1 million, or 18.9% of net sales, in the prior year period. SG&A expenses included $5.9 million in reorganization charges in the nine months ended June 30, 2026 and a $69.0 million provision for legal matters in the nine months ended June 30, 2025, both of which were treated as adjustments for non-GAAP measures. Marketing and consumer advertising expenses were $71.8 million, an increase of $12.7 million compared to the prior year period, driven by increased Premier Protein spend.
Operating profit was $209.9 million, a decrease of $45.3 million, compared to $255.2 million in the prior year period driven by lower gross profit.
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