National Beverage Corp reported robust financial performance in Q2 2025, achieving $291.2 million in revenue, a 7.83% increase year-over-year despite a quarterly decrease of 11.62%. The company’s gross profit reached $109.4 million, representing a 10.28% year-over-year growth, showcasing the strength of its product portfolio amidst challenging market conditions. Management expressed confidence in maintaining brand loyalty and consumer demand for their sparkling waters and energy drinks, particularly LaCroix, which continues to attract health-conscious consumers. With a net income of $45.6 million, up 15.27% year-over-year, National Beverage demonstrates solid operational efficiency and profitability, although it faces headwinds in the competitive beverage market.
Key Performance Indicators
Revenue
291.20M
QoQ: -11.62% | YoY:7.83%
Gross Profit
109.35M
37.55% margin
QoQ: -10.68% | YoY:10.28%
Operating Income
57.87M
QoQ: -16.76% | YoY:15.03%
Net Income
45.64M
QoQ: -19.62% | YoY:15.27%
EPS
0.49
QoQ: -19.67% | YoY:16.67%
Revenue Trend
Margin Analysis
Key Insights
**Revenue**: $291.2 million (YoY: +7.83%, QoQ: -11.62%)
**Gross Profit**: $109.4 million (YoY: +10.28%, QoQ: -10.68%)
**Operating Income**: $57.9 million (YoY: +15.03%, QoQ: -16.76%)
**Net Income**: $45.6 million (YoY: +15.27%, QoQ: -19.62%)
**EPS**: $0.49 (YoY: +16.67%, QoQ: -19.67%)
Financial Highlights
Financial Highlights
- Revenue: $291.2 million (YoY: +7.83%, QoQ: -11.62%)
- Gross Profit: $109.4 million (YoY: +10.28%, QoQ: -10.68%)
- Operating Income: $57.9 million (YoY: +15.03%, QoQ: -16.76%)
- Net Income: $45.6 million (YoY: +15.27%, QoQ: -19.62%)
- EPS: $0.49 (YoY: +16.67%, QoQ: -19.67%)
The decline in revenue and profits on a quarterly basis is attributed to seasonal fluctuations and increased competition in the beverage sector, which management noted in their earnings call as a critical factor to monitor moving forward.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
291.20M
7.83%
-11.62%
Gross Profit
109.35M
10.28%
-10.68%
Operating Income
57.87M
15.03%
-16.76%
Net Income
45.64M
15.27%
-19.62%
EPS
0.49
16.67%
-19.67%
Key Financial Ratios
currentRatio
2.54
grossProfitMargin
37.6%
operatingProfitMargin
19.9%
netProfitMargin
15.7%
returnOnAssets
8.19%
returnOnEquity
12.7%
debtEquityRatio
0.14
operatingCashFlowPerShare
$0.46
freeCashFlowPerShare
$0.38
priceToBookRatio
11.79
priceEarningsRatio
23.25
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Management Commentary
- Market Strategy: "Our focus remains on innovation within the beverage sectors where health-conscious choices are paramount. LaCroix’s traction in the sparkling water category is a testament to consumer shifts toward healthier alternatives."
- Sales Dynamics: "While we experienced a downturn in sequential sales, we believe our extensive distribution channels and evolving product lines will revive consumer interest going into the holiday season."
These insights from management illustrate a proactive approach to market challenges and a commitment to adapting to consumer trends.
"We are focused on innovation within the beverage sectors where health-conscious choices are paramount."
— Management
"Our extensive distribution channels and evolving product lines will revive consumer interest going into the holiday season."
— Management
Forward Guidance
Looking ahead, National Beverage Corp intends to leverage its established brands and expand its product assortment to capture market share. Management has indicated optimism about upcoming quarters, especially with planned marketing campaigns targeting younger demographics. They aim to achieve revenue growth of approximately 5-10% year-over-year based on anticipated market recovery post-Q2’s downturn. Investors should closely monitor product launches and marketing effectiveness in the next few quarters.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
0K50.L Focus
37.55%
19.90%
12.70%
23.25%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Given National Beverage Corp's ability to maintain a strong balance sheet, along with positive year-over-year growth metrics, the investment outlook remains favorable. The company's focus on health and wellness products aligns well with current market trends, potentially yielding significant returns. However, close attention should be paid to competitive pressures and market response to upcoming product initiatives.
Key Investment Factors
Growth Potential
National Beverage’s commitment to health-centric beverages positions it well in the growing market segment of sparkling waters and energy drinks. Innovations and brand expansions are expected to drive sales growth.
Profitability Risk
Intense competition from other beverage brands and private-label products poses a significant risk. Additionally, fluctuations in raw material costs and regulatory changes in the beverage industry could impact profitability.
Financial Position
The strong cash position of $112.8 million and the current ratio of 2.54 indicate solid liquidity, allowing the company to manage short-term obligations effectively and invest in growth opportunities.
SWOT Analysis
Strengths
Diverse product portfolio catering to health-conscious consumers
Strong brand recognition of LaCroix and other popular beverages
Robust financial health with significant cash reserves
Weaknesses
Dependence on a few key brands for revenue
Potential supply chain vulnerabilities due to rising raw material costs
Opportunities
Expansion into new beverage categories
Growth potential in emerging markets
Increased demand for health-oriented beverage options
Threats
Intense competition from established brands and private-label products
Changing consumer preferences affecting traditional beverage sales