On November 20, 2023, BellRing Brands Inc (BRBR, Financial) released its 8-K filing, detailing a robust performance for both the fourth quarter and the full fiscal year ended September 30, 2023. The company, a key player in the global convenient nutrition category, reported significant growth in net sales and earnings, with a notable increase in cash generated from operations.
Fiscal Year 2023 Performance Highlights
For the fiscal year 2023, BRBR's net sales reached $1,666.8 million, marking a 21.5% increase from the previous year. This growth was driven by a 12.2% improvement in price/mix and a 9.3% increase in volume. The company's operating profit surged by 35.3% to $287.3 million, while net earnings available to common stockholders more than doubled, increasing by 101.1% to $165.5 million.
Fourth Quarter Financials
The fourth quarter saw net sales of $472.6 million, a 24.6% increase compared to the same period last year. This was attributed to a 19.4% rise in volume and a 5.2% improvement in price/mix. Operating profit for the quarter stood at $78.1 million, a 27.8% increase year-over-year. Net earnings available to common stockholders for the quarter were $46.1 million, up 36.8% from the prior year period.
Operational and Market Achievements
BRBR's President and CEO, Darcy H. Davenport, highlighted the company's strong finish to the year, with results at the high end of expectations. The company's flagship brand, Premier Protein, saw accelerated consumption, benefiting from distribution gains and promotional activities. Dymatize also experienced robust growth, driven by new households and distribution gains. The company's shake capacity expansion is on track, and the outlook for both brands remains positive.
Balance Sheet and Cash Flow
BRBR generated $215.6 million in cash from operations during fiscal year 2023. The company's balance sheet shows a healthy cash and cash equivalents position of $48.4 million as of September 30, 2023. Total assets stood at $691.6 million, while total liabilities were $1,015.1 million, resulting in a stockholders' deficit of $(323.5) million.
Future Outlook
Looking ahead to fiscal year 2024, BRBR anticipates net sales to range between $1.83-$1.91 billion and Adjusted EBITDA to be between $360-$390 million. This forecast represents a growth of 10%-15% in net sales and 6%-15% in Adjusted EBITDA over fiscal year 2023.
Non-GAAP Measures and Reconciliation
BRBR uses non-GAAP financial measures, such as Adjusted EBITDA, to provide a clearer picture of the company's operating performance and liquidity. These measures exclude certain items that may not be indicative of ongoing business operations. A detailed reconciliation of non-GAAP measures to their most directly comparable GAAP measures is provided in the company's earnings release.
In summary, BellRing Brands Inc (BRBR, Financial) has demonstrated strong financial growth in fiscal year 2023, with significant increases in net sales, operating profit, and net earnings. The company's strategic focus on its core brands and market expansion has yielded positive results, and the outlook for the next fiscal year remains optimistic.
Explore the complete 8-K earnings release (here) from BellRing Brands Inc for further details.
