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BellRing Brands has cut its full-year sales and profit forecasts, with the US group pointing to cautious consumers, heavy promotions and cost inflation.
The protein shakes and powders maker said its second-quarter net sales increased 1.8% year-on-year to $598.7m.
However, in the three months to the end of March, BellRing's operating profit fell 30.6% to $66m and its net earnings declined 42.2% to $33.9m.
Results for the quarter included an $11.3m pre-tax inventory-related charge tied to a third-party ingredient that failed to meet quality standards, the company said.
Darcy Davenport, BellRing's president and CEO, said: “We are disappointed in our second-quarter results. Heightened consumer price sensitivity together with a sustained promotional environment adversely impacted our sales mix.
“This unfavourable mix, along with higher freight costs and an inventory-related charge significantly pressured our margins.”
The owner of the Premier Protein and Dymatize brands now expects its fiscal 2026 net sales to range from $2.32bn to $2.36bn. If the sales land in that range, it would be equivalent at worst a flat year, or, at best, growth of 2%.
BellRing had forecast net sales of $2.41bn to $2.46bn, which would have amounted to 4-6% growth.
The company's guidance includes an adjusted EBITDA metric, which more than halved during the second quarter to $53.8m.
BellRing is forecasting its full-year adjusted EBITDA will be range from $315m to $335m, versus its February guidance of $425m to $440m.
Davenport added: “Our revised guidance incorporates promotional and consumer headwinds through the balance of the year, along with incremental inflation on protein and freight, while investing in advertising.
“While the current environment remains challenging, our category remains healthy and we are taking action to improve our long-term financial performance.”
BellRing's sales growth in the quarter was driven by a 10.8% rise in volume, offset by a 9% decline in price/mix.
Premier Protein net sales grew 1.7%, helped by increased promotions and distribution gains. Dymatize sales slipped 1.9%, the group said.
For the first half, net sales rose 1.3% to $1.136bn. During the six months, operating profit fell 31.3% to $144.5m and net earnings dropped 42.8% to $77.6m.
As announced in February, Davenport is planning to leave the US sports-nutrition group.
Alongside the latest results, the company said the search for a replacement is “progressing well”.
"BellRing Brands lowers sales, profit forecasts" was originally created and published by Just Food, a GlobalData owned brand.
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