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BellRing Brands (NYSE:BRBR) tracked higher in early trading on Tuesday after the food company topped Q1 estimates.
Revenue was up 18.7% year-over-year to $430.4M driven by a 19.0% increase in volume, which easily offset the 0.3% decrease in price/mix. Premier Protein segment sales increased 18.9%, driven by 19.5% increase in volume and 0.6% decrease in price/mix. Premier Protein RTD shake net sales increased 19.0%, driven by 20.4% increase in volume and 1.4% decrease in price/mix. Dymatize segment sales increased 20.9%, driven by 32.4% increase in volume and 11.5% decrease in price/mix. Volume growth was driven by distribution gains and organic growth, along with lapping a trade inventory de-load in the international and specialty channels in the prior year period.
Gross profit improved to 34.4% of sales from 33.6% of sales a year ago. The higher gross profit margin was driven by net input cost deflation, which was partially offset by incremental promotional activity and lapping production attainment fees received in the prior year period. EPS came in at $0.43 vs. $0.40 consensus and $0.33 a year ago. Adjusted EBITDA was up 18.4% year-over-year during the quarter to $100.5M.
Looking ahead, BellRing Brand (BRBR) sees FY24 revs of $1.87B to $1.95B vs. a prior outlook for $1.83B to $1.91B and $1.89B consensus. "Our second new greenfield co-manufacturing facility came online and overall shake capacity expansion is on track. Our strong start to 2024 gives us greater confidence in the full year and drives our decision to raise our outlook," stated CEO Darcy Davenport.
Shares of BellRing Brands (BRBR) rose 1.41% premarket to $58.40 vs. the 52-week trading range of $28.06 to $57.78.