Release Date: February 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: How is BellRing Brands growing differently this year compared to last year, and what are the key growth levers? A: Darcy Davenport, President and CEO, explained that this year is fundamentally different due to ample capacity, allowing the company to focus on demand driving. Key growth levers include national advertising, expanded distribution, and increased promotions, particularly in the food channel. The company is also focusing on innovation and display promotions rather than deep discounting.
Q: What is the outlook for Dymatize, especially considering the strong international performance? A: Darcy Davenport noted that Dymatize's international business, which constitutes about 40% of the global brand, is expected to remain strong throughout the year. However, the U.S. market faces pressure due to rising commodity prices. Overall, the company anticipates single-digit growth for the global brand.
Q: Can you provide an update on the national advertising campaign for Premier Protein and its early results? A: Darcy Davenport stated that the campaign launched at the end of December and is generating strong early results, with increased website traffic and online searches. The campaign was well-researched, with test markets meeting or exceeding expectations, and some creative adjustments were made to improve the spot.
Q: How is BellRing Brands addressing the convenience store channel and the impact of GLP-1 drugs on their business? A: Darcy Davenport mentioned that the convenience store channel is a future opportunity, representing about 10% of the overall category. Regarding GLP-1 drugs, they are tracking closely and estimate that GLP-1s contribute about 25% to their growth. The penetration of GLP-1s is stabilizing, but they continue to see a positive impact on their products.
Q: What are the expectations for cost inflation and its impact on the business? A: Paul Rode, CFO, confirmed that the expectation for mid-single-digit cost inflation remains unchanged, driven by market dynamics in whey and milk proteins. The company anticipates a more favorable cost environment in the first half of the year, with some unfavorable shifts in the second half.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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