BellRing Brands Reports Mixed Q3 Results with 6% Sales Growth but 72% Drop in Net Earnings

BellRing Brands, Inc. reported its financial results for the third quarter and nine months ended June 30, 2025, revealing a mixed performance amid rising costs and legal provisions. The company achieved net sales of $547.5 million for the quarter, a 6% increase from $515.4 million in the same period last year. For the nine-month period, net sales rose 16% to $1.668 billion, compared to $1.440 billion in the prior year. However, net earnings for the quarter fell significantly to $21.0 million, down 72% from $73.7 million a year earlier, while nine-month net earnings decreased 10% to $156.6 million from $174.8 million.

The decline in profitability was primarily attributed to a $68.1 million provision for legal matters and increased product costs, which rose by $18.6 million due to higher raw material and manufacturing expenses. Operating profit for the quarter dropped 60% to $44.8 million, while for the nine months, it decreased by 7% to $255.2 million. The company also reported a rise in interest expenses, which increased by 28% for the quarter and 13% for the nine months, largely due to higher borrowings under its revolving credit facility.

In terms of strategic developments, BellRing Brands continues to focus on its core product lines, primarily ready-to-drink protein shakes and powders under the Premier Protein and Dymatize brands. Sales of Premier Protein products increased by 6% in the quarter, driven by distribution gains and promotional activities, while Dymatize products saw a 5% increase, supported by higher international volumes and new product introductions. The company also reported a significant increase in inventory levels, which rose to $415.6 million from $286.1 million year-over-year, reflecting higher production levels.

BellRing Brands has been actively managing its capital structure, borrowing $360 million and repaying $185 million under its revolving credit facility during the nine months ended June 30, 2025. The company repurchased 3.8 million shares of its common stock at an average price of $69.67 per share, totaling $267.6 million. Looking ahead, the company expects to generate positive cash flows from operations and believes its current liquidity, along with potential future credit facilities, will be sufficient to meet its working capital needs and other financial obligations. However, it remains cautious about the impact of inflationary pressures on input costs and market conditions on its business performance.