Bellring Brands Reports Strong Q3 Earnings, Raises FY21 Outlook

Bellring Brands Inc BRBR reported third-quarter FY21 sales growth of 67.8% year-on-year, to $342.6 million, beating the analyst consensus of $290.65 million.
Premier Protein net sales increased 64.9% Y/Y, Premier Protein ready-to-drink (RTD) shake sales rising 66.5%, and Dymatize net sales gained 98.5%.
Gross profit gained 62% Y/Y to $111.3 million. Gross profit margin contracted 110 points to 32.5% due to higher input costs, predominantly freight and milk-based proteins for RTD shakes.
The operating margin was 15%, and operating income for the quarter rose 68.3% to $51.5 million.
Bellring Brands held $89.4 million in cash and equivalents as of June 30, 2021. Cash provided by operating activities for the nine months amounted to $145.9 million.
Adjusted EBITDA of $70.5 million rose 83.1% Y/Y.
Adjusted EPS of $0.30 beat the analyst consensus of $0.22.
Outlook: Bellring raised FY21 sales guidance to $1.25 billion - $1.28 billion (prior $1.17 billion - $1.20 billion), versus the consensus of $1.18 billion.
Post Holdings, Inc. POST disclosed a plan to distribute a significant portion of its interest in BellRing Brands to its shareholders.
Post expects to determine the form of distribution based on market conditions.
Price action: BRBR shares closed higher by 1.04% at $32.14 on Thursday.

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