BellRing Brands, Inc. (NYSE:BRBR), a multinational easy nutrition holding firm, recently announced fourth quarter and fiscal year performance ended 30 September 2020.
Compared with the prior year period, net sales were $282.6 million, an improvement of 31.7 percent, or $68.1 million. Net sales of Premier Protein grew 37.2 percent, with volumes up 40.6 percent, and net sales of Premier Protein ready-to-drink shake improved 39.8 percent, with volumes up 46.2 percent.
Net sales of Premier Protein gained from RTD shake distribution increases for both current and new goods, incremental promotion strategies and a decline in the previous year’s customer trade inventory rate.
In addition, net sales gained from a rise in inventory volumes of consumer trade, as RTD shake exports surpassed demand driven by some promotional activities and resets of retailer shelves that took place early in the first quarter of 2021.
Net sales of Dymatize rose 14.5 percent, with volumes rising 22.1 percent, as solid growth in eCommerce and mass and club markets was partly offset by foreign declines. Net sales of PowerBar rose 1.0 percent, with volumes falling 13.6 percent . Compared with the third quarter of 2020, net sales of Dymatize and PowerBar improved, but the global trade continued to be adversely affected by changing consumer preferences in response to the COVID-19 pandemic.
Gross profit was $89.8 million, or 31.8% of net revenue, an improvement of 17.1%, or $13.1 million, relative to gross profit of $76.7 million in the previous year or 35.8% of net sales. The lower gross profit margin was influenced by the projected higher input costs and lower net retail average prices arising from incremental promotional practises.
Sales, general and administrative expenditures were $35.2 million, or 12.5% of net sales, an improvement of $0.1 million relative to $35.1 million in SG&A costs in the previous year or 16.4% of net sales. SG&A costs included higher employee-based expenditures of $3.1 million and additional public company costs of $1.8 million, which were largely offset by reduced costs of $2.7 million related to BellRing’s split from Post Holdings, Inc. The costs of separation is viewed as corrections for non-GAAP behaviour.