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August 7, 2020

Nutrition business BellRing Brands cuts sales outlook due to Covid-19 impact

BellRing Brands, a US-based health and nutrition firm, has cut its forecast for annual sales due to the negative impact from Covid-19.

By Dean Best

BellRing Brands, a US-based health and nutrition firm, has cut its forecast for annual sales after they decreased in the third quarter due to the impact from the Covid-19 pandemic.

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The company, which was the Active Nutrition division of Post Holdings before being spun off as a new business last year, expects sales to range between US$960-980m. In May, when BellRing reported its second-quarter numbers, it put forward guidance for sales of $1.0-1.05bn.

Meanwhile, the outlook for adjusted EBITDA was reaffirmed in a range of $192-202m. That metric fell 11.3% to $38.5m in the quarter to 30 June. 

BellRing operates in the ready-to-drink (RTD) protein beverages segment, protein powders and nutrition bars, with Premier Protein its flagship brand, accompanied by Dymatize and PowerBar. 

Third-quarter net sales for the group were down 14.1% at $204.2m. Operating profit for the three-month period to 30 June stood at $30.6m, compared to $52.8m a year earlier.

“BellRing’s products experienced category-wide slowing growth rates resulting from changes in consumer behaviour, including lower on-the-go consumption and decreased relevance of sports nutrition consumption,” the company said in the results statement. 

Over the nine months, sales rose 10.3% to $705.7m but adjusted EBITDA declined 7.4% to $140.5m. Income after taxes was down at $73.8m, from $126.5m a year earlier.

For its brands, sales of Premier Protein fell 11.9% in the third quarter, based on a 9.5% drop in volumes.

Dymatize declined 16.6%, with volumes down 22.4%. PowerBar net sales fell 44.2% amid a 45.1% drop in volumes.

After being spun-off by Post Holdings, BellRing completed a public share offering last October. As of June, Post held 71.2% of the “economic interest” in BellRing, according to the third-quarter results statement.

Related Companies

Free Whitepaper
img

What is the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry?

While wanting to protect the country from being overwhelmed by Omicron, China’s adherence to a Zero-COVID policy is resulting in a significant economic downturn. COVID outbreaks in Shanghai, Beijing and many other Chinese cities will impact 2022’s economic growth as consumers and businesses experience rolling lockdowns, leading to a slowdown in domestic and international supply chains. China’s Zero-COVID policy is having a demonstrable impact on consumer-facing industries. Access GlobalData’s new whitepaper, China in 2022: the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry, to examine the current situation in Shanghai and other cities in China, to better understand the worst-affected industry sectors, foodservice in particular, and to explore potential growth opportunities as China recovers. The white paper covers:
  • Which multinational companies have been affected?
  • What is the effect of lockdowns on foodservice?
  • What is the effect of lockdowns on Chinese ports?
  • Spotlight on Shanghai: what is the situation there?
  • How have Chinese consumers reacted?
  • How might the Chinese government react?
  • What are the potential growth opportunities?
by GlobalData
Enter your details here to receive your free Whitepaper.

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