BellRing Brands (NYSE:BRBR) reported first-quarter fiscal 2026 results that management said came in ahead of internal expectations, largely due to the timing of customer orders. President and CEO Darcy Davenport said the quarter provided “a solid foundation for the year” as the company continues to execute plans to expand distribution, increase brand investment, and accelerate innovation across its Premier Protein and Dymatize brands.
Total net sales rose 1% to $537 million, and adjusted EBITDA was $90 million, representing a 16.8% margin, according to CFO Paul Rode. Rode said BellRing had expected net sales to be down about 5% in the quarter, but results benefited from orders that shifted from the second quarter into the first quarter as well as upside at Dymatize.
Category trends and competitive environment
At the same time, management highlighted intensifying competitive dynamics. Davenport said the company has observed “more frequent promotional events from insurgent brands than expected,” particularly in club and also in mass channels, and incorporated that into its outlook for Premier Protein consumption for the balance of the year. She characterized the category’s overall promotional intensity as typically relatively low, but said promotional activity is higher this year due to newer entrants trying to establish a foothold.
BellRing also updated its category framing in investor materials, changing the definition from “convenient nutrition” to “wellness.” Davenport said the broader definition increases the U.S. category size to $24 billion from $21 billion, reflecting additional products consumers view as part of the category. She emphasized the definitional change does not impact previously reported tracked consumption or household penetration metrics.
First-quarter performance: Premier down, Dymatize up
BellRing said wellness category growth was 7% in the quarter, and RTD shakes were also up 7%, driven by volume. Premier RTD shake consumption declined 2% in the quarter, which management attributed to lapping 23% consumption growth in the prior-year period and a particularly strong club comparison. Consumption outside of club was up 11%.
Davenport said Premier’s first-quarter consumption came in slightly below BellRing’s prior expectation of flat, citing two main factors: timing delays in activating promotional display at a mass retailer and a “modest impact” from greater-than-expected promotional activity by insurgent brands.
On the financial side, Premier Protein net sales were down 1% in the quarter, with RTD shake net sales down 2%. Rode said Premier shake volumes were flat, while price/mix was unfavorable by 2%.
Dymatize net sales increased 16%, driven by strong volume performance, particularly internationally. On the call, Rode pointed to continued strength across international markets, including the Middle East, South America, and Central America, supported by distributor partners and local competitive dynamics. Davenport added that Dymatize’s U.S. share trends were “pretty flat,” describing the brand as holding share in a growing category while the company manages profitability amid higher whey costs.
Margins, input costs, and tariffs
Gross profit was $161 million, and gross margin was 29.9%. Excluding mark-to-market adjustments on commodity hedges, adjusted gross margin declined 730 basis points. Rode said the decline was expected and reflected mid-single-digit input cost inflation, unfavorable mix, and lapping $5 million of non-recurring cost favorability in the prior year.
Management expects whey protein inflation for the remainder of the year and said headwinds on RTD shake milk proteins should moderate in the second half. Rode also said tariffs had an unfavorable 75 basis point impact on first-quarter gross margins and are expected to reduce full-year gross margins by about 80 basis points.
SG&A expense was $78 million, or 14.5% of sales, compared with 15% in the prior-year quarter.
Guidance updated; advertising and promotion to step up
BellRing narrowed fiscal 2026 net sales guidance to 4% to 6% growth, or $2.41 billion to $2.46 billion, reflecting the updated consumption outlook for Premier and “some upside” from Dymatize. Rode said the company now expects Premier Protein net sales to grow mid-single digits at the midpoint, with distribution gains, innovation, and increased brand investment expected to lift sales growth starting in the second quarter and become more meaningful in the second half. He said volume performance is expected to be partially offset by a low-single-digit headwind from increased promotional investment.
Adjusted EBITDA guidance was updated to $425 million to $440 million, with a margin of approximately 18%. Rode said the outlook incorporates a slight mix shift toward lower-margin Dymatize and a “meaningful increase” versus prior expectations in whey costs, which he described as the primary input cost for protein powders. At the midpoint, BellRing expects adjusted EBITDA margins to decline about 300 basis points year over year, with lower adjusted gross margins as the primary driver.
For the second quarter, BellRing expects net sales growth of 3% to 4%, with similar growth for Premier and Dymatize. Rode said second-quarter adjusted EBITDA margin is expected to be approximately 13% due to commodity inflation, tariffs, higher planned advertising, and the timing shift of sales into the first quarter. The company expects sequential margin improvement in the second half, driven by accelerating sales growth and cost savings, a smaller Dymatize mix, and higher SG&A leverage.
- Full-year net sales guidance: $2.41 billion to $2.46 billion (4% to 6% growth)
- Full-year adjusted EBITDA guidance: $425 million to $440 million (about 18% margin)
- Q2 net sales growth outlook: 3% to 4%
- Q2 adjusted EBITDA margin outlook: about 13%
Rode said advertising is expected to be about 4% of sales, with the largest year-over-year dollar increases in the second and third quarters.
Distribution, marketing, innovation, and leadership transition
Davenport outlined progress on distribution and merchandising efforts, including greater emphasis on in-store activation and single-bottle trial. She said sales of single bottles “more than doubled” in January. Discussing a mass retailer partnership that included extensive displays and end caps and the first launch of Premier’s Coffeehouse shake line, Davenport said program execution was modestly delayed due to the retailer’s holiday merchandise transition, but is now fully in place and showing strong double-digit consumption growth as traction builds. In the Q&A, she said the program is performing “very well,” producing record weekly sales on rollback items and making January the retailer’s largest month ever for Premier.
On marketing, Davenport said BellRing launched its “Go Get ’Em” campaign in late December across linear TV, streaming, podcasts, social, retail media, and out-of-home placements, adding that the campaign tested better than any prior Premier campaign.
On innovation, Davenport highlighted the new Coffeehouse line, which she said provides 30 grams of protein and caffeine equivalent to one cup of coffee, and noted early results, including strong velocity for the Caramel Macchiato 4-count in January. She also said the company plans to add a Coffeehouse variety pack in bottles at a club retailer later in the month. Davenport said Premier will continue limited-time flavor offerings and announced two new shake lines slated for the second half: one aimed at higher-protein demand and another offering “a completely different drinking experience” that tested above industry benchmarks.
Separately, Davenport announced she plans to retire as president and CEO later in fiscal 2026, with the transition expected on or before September 30, 2026. She said the board has initiated a national external search for a successor and that she will serve in an advisory role after the new CEO is appointed.
On capital allocation, Rode said the company ended the quarter with net leverage of 2.5 times and repurchased $97 million of shares during the first quarter, noting that BellRing remains “highly cash generative” with a solid balance sheet.
About BellRing Brands (NYSE:BRBR)
BellRing Brands, Inc is a consumer packaged goods company specializing in high‐protein, better‐for‐you nutrition products. Formed in March 2020 as a spin‐off from Post Holdings, the company focuses on delivering convenient protein solutions to health‐conscious consumers through a portfolio of well‐known and emerging brands.
The company’s product offerings include ready‐to‐drink protein shakes, protein powders, nutrition bars and other performance nutrition items. BellRing Brands’ flagship brands include Premier Protein, a line of shakes and bars designed for everyday protein supplementation, as well as Dymatize and PowerBar, which cater to athletes and active individuals seeking advanced sports nutrition formulas.
BellRing Brands markets its products primarily across North America, leveraging relationships with major retailers, wholesale clubs and e-commerce platforms to reach consumers in the United States and Canada.
