BellRing Brands Q2 2025: Strong Growth Fuels Optimism, But Supply Chain Risks Linger

BellRing Brands (NYSE: BRBR) delivered a robust second-quarter performance in fiscal 2025, with net sales surging 18.9% to $588.0 million, driven by double-digit growth in its flagship Premier Protein brand. The results, highlighted during the company’s May 6 earnings call, underscore its strategy of leveraging promotional campaigns and distribution expansions to dominate the protein nutrition market. However, rising costs and supply chain vulnerabilities remain critical challenges. Below is an analysis of BellRing’s Q2 achievements, risks, and what investors should watch next.

Key Financial Highlights

BellRing’s Q2 results were anchored by Premier Protein’s 22% sales jump, fueled by a 15.3% volume increase and 6.7% price/mix gains. The brand’s RTD shakes saw dollar consumption rise 24.9%, while powder products grew 21.7%, reflecting strong consumer adoption. By contrast, Dymatize’s sales rose just 3%, constrained by a 17.3% price/mix decline despite 20.4% volume growth from international sales.

Adjusted EBITDA increased 14.4% to $118.6 million, while diluted EPS rose 4.7% to $0.45. Year-to-date performance was equally strong, with net sales up 21.2% to $1.12 billion and Adjusted EBITDA climbing 19.4% to $243.9 million.

Operational Momentum and Risks

CEO Darcy H. Davenport emphasized that Premier Protein’s “record household penetration and market share” stemmed from aggressive promotions and media spending, which drove brand awareness. The company’s Q2 marketing budget rose $12.5 million, contributing to the 30% jump in SG&A expenses.

However, BellRing’s reliance on third-party manufacturers poses risks. One supplier alone produces nearly half of its RTD shakes, creating vulnerability to supply chain disruptions. CFO Paul A. Rode acknowledged this dependency but noted the company is “actively exploring alternative sourcing options.”

Input costs also loomed large: gross profit margins dipped slightly as price hikes and promotional spending offset rising freight and raw material expenses.

Outlook and Share Repurchases

BellRing reaffirmed its fiscal 2025 guidance:
- Net Sales: $2.26–2.34 billion (+13%–17%)
- Adjusted EBITDA: $470–500 million (+7%–14%)

The company remains bullish on its premium protein brands, with $280 million remaining in its share repurchase program. Year-to-date, it has repurchased 2.5 million shares for $182.7 million, signaling confidence in its stock’s valuation.

Conclusion: A Growth Story, But Watch the Supply Chain

BellRing’s Q2 results affirm its position as a leader in the high-growth protein nutrition category. Premier Protein’s 22% sales surge and record market share suggest the brand’s promotional strategy is resonating with consumers. The reaffirmed guidance and aggressive share buybacks further validate management’s confidence.

However, investors must weigh these positives against operational risks. The company’s reliance on a single supplier for half its RTD production and rising SG&A costs could pressure margins if supply chain bottlenecks or inflation intensify.

For now, BellRing’s stock appears fairly valued at 12.5x its 2025 Adjusted EBITDA midpoint ($485 million). A successful diversification of suppliers and sustained consumption growth in RTD shakes could unlock upside. But if supply chain issues escalate, BellRing’s growth narrative—and valuation—could falter.

Final Takeaway: BellRing’s Q2 results are a win for investors focused on the protein category’s long-term potential. But with supply chain risks unresolved, this remains a stock for those willing to accept volatility in pursuit of premium nutrition growth.