EPS of $0.42 increased by 13.5% from previous year
Gross margin of 36.7%
Net income of 39.59M
""Our focus on health-conscious beverages has positioned us well to meet changing consumer demands. The success of our LaCroix line is a testament to our market strategy and innovation efforts."" - CEO
National Beverage Corp (FIZZ) Q3 2024 Results: A Solid Quarter Amidst Market Challenges
Executive Summary
National Beverage Corp reported a revenue of $270.07 million for the third quarter of fiscal year 2024, reflecting a modest year-over-year growth of 0.59%. However, this marks a quarterly decline of 10% compared to the previous quarter, highlighting potential pressures in demand or distribution challenges. The net income for the quarter reached $39.59 million, an increase of 15.22% year-over-year, showcasing the company’s strong operational efficiency despite revenue fluctuations.
Management emphasized their commitment to product innovation and market expansion during the earnings call. They discussed the successful rollout of new flavors and the strengthening market position of their LaCroix brand, which continues to resonate with health-conscious consumers. Investors are reminded to monitor the trends in consumer preferences as they navigate through the challenges posed by competitors and changing market dynamics.
Q3 2024 Net Income: **$39.59 million** (YoY: **15.22%**, QoQ: **-9.58%**)
Earnings Per Share (EPS): **$0.42** (YoY growth: **13.51%**, QoQ: **-10.64%**)
Gross Profit Margin: **36.72%**, Operating Income Margin: **18.63%**, Net Profit Margin: **14.56%**.
Year-over-year improvements in profitability metrics indicate robust control over costs amidst a fluctuating revenue environment.
Financial Highlights
Revenue Performance:
- Q3 2024 Revenue: $270.07 million (YoY: 0.59%, QoQ: -10.00%)
- Q3 2024 Net Income: $39.59 million (YoY: 15.22%, QoQ: -9.58%)
- Earnings Per Share (EPS): $0.42 (YoY growth: 13.51%, QoQ: -10.64%)
Profitability Ratios:
- Gross Profit Margin: 36.72%, Operating Income Margin: 18.63%, Net Profit Margin: 14.56%.
- Year-over-year improvements in profitability metrics indicate robust control over costs amidst a fluctuating revenue environment.
Balance Sheet Health:
- Total Assets: $719.88 million; Total Liabilities: $209.66 million; Total Stockholder's Equity: $510.22 million.
- The current ratio stands at 3.68, indicating strong liquidity and ability to meet short-term obligations without strain.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
270.07M
0.59%
-10.00%
Gross Profit
99.16M
4.46%
-8.07%
Operating Income
50.31M
13.22%
-7.35%
Net Income
39.59M
15.22%
-9.58%
EPS
0.42
13.51%
-10.64%
Key Financial Ratios
currentRatio
3.68
grossProfitMargin
36.7%
operatingProfitMargin
18.6%
netProfitMargin
14.7%
returnOnAssets
5.5%
returnOnEquity
7.76%
debtEquityRatio
0.11
operatingCashFlowPerShare
$0.38
freeCashFlowPerShare
$0.31
priceToBookRatio
8.64
priceEarningsRatio
27.84
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Market Strategy:
- CEO: "Our focus on health-conscious beverages has positioned us well to meet changing consumer demands. The success of our LaCroix line is a testament to our market strategy and innovation efforts."
- CFO: "We have streamlined our operating expenses, which have allowed us to maintain healthy margins despite market pressures."
Growth Initiatives:
- Management highlighted ongoing product innovation and potential expansions into new markets as pivotal strategies for future growth. They are actively looking for partnerships that align with their brand values.
"Our focus on health-conscious beverages has positioned us well to meet changing consumer demands. The success of our LaCroix line is a testament to our market strategy and innovation efforts."
— CEO
"We have streamlined our operating expenses, which have allowed us to maintain healthy margins despite market pressures."
— CFO
Forward Guidance
Looking ahead, management projects moderate revenue growth, driven primarily by the expansion of their health-oriented product lines. While the beverage segment remains competitive, they emphasize innovation as a key differentiator. The company strives to achieve a revenue target exceeding **$1 billion** by fiscal year 2026, contingent upon successful product launches and market expansion efforts. Investors should closely watch consumer trends and competitor responses as these will significantly influence National Beverage Corp's operational strategy.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
FIZZ Focus
36.72%
18.60%
7.76%
27.84%
CELH
50.40%
25.40%
8.09%
39.35%
MNST
53.00%
27.50%
5.75%
30.62%
KOF
45.90%
13.50%
4.33%
13.33%
KDP
55.50%
23.50%
2.04%
21.29%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
National Beverage Corp's focus on health-conscious products positions it favorably within the beverage industry. The management’s commitment to innovation and market expansion, complemented by a solid financial position, presents a compelling investment opportunity for those looking to capitalize on growth in the health-focused beverage segment. However, potential investors should remain cautious of competitive pressures and keep a close watch on how macroeconomic factors may impact consumer spending.
Key Investment Factors
Growth Potential
The company shows strong growth potential, particularly in the health-conscious beverage segment, aided by new product launches. The LaCroix brand continues to perform robustly within the sparkling water category.
Profitability Risk
Key risks include competition from existing and new entrants in the beverage market and fluctuations in raw material costs which could impact margins. Economic downturns may also affect consumer spending on discretionary items like premium beverages.
Financial Position
With a solid liquidity position (current ratio of 3.68) and a healthy cash balance, National Beverage Corp is well-equipped to navigate market challenges and invest in growth opportunities.
SWOT Analysis
Strengths
Strong brand portfolio, particularly the LaCroix brand which is favored by health-conscious consumers.
Robust revenue growth in the previous fiscal year.
Solid balance sheet with a strong liquidity position.