National Beverage Corp. (NASDAQ: FIZZ) has reported exceptional results for its third quarter ended January 27, 2024. The company has achieved record net sales, which increased to $270 million compared to the prior year. Additionally, gross profit grew to an all-time high of $97 million, with a gross profit margin increasing to 36% of sales, showing a significant improvement. Operating income also reached a record high of $48 million, marking a 120 basis points margin improvement.
Earnings per share increased by 14% to $0.42, demonstrating strong growth in this key metric. The company's cash position has also strengthened, reaching $277 million. These figures reflect National Beverage Corp.'s eleventh consecutive quarter of record sales, highlighting its strong performance in the market.
The company's spokesperson emphasized the focus on innovation, with the introduction of new products in its portfolio to delight consumers. Notably, the newest flavor of its popular brand, LaCroix, called Mojito, has been launched nationally, aiming to bring a sensory feel of paradise to consumers. The brand's strong reputation was further validated by being named one of the most trusted brands in America by a survey of U.S. shoppers conducted by Newsweek.
The company's commitment to health as a strategic focus was underscored, particularly with its emphasis on offering products free of calories, sweeteners, and sodium. National Beverage Corp. has maintained its stance on rejecting the inclusion of caffeine or alcohol in its products out of concern for consumer health. The company's financial philosophy prioritizes strong healthy cash flows, eschews long-term debt, and prioritizes shareholder returns without manipulative stock buybacks.
In terms of financial performance, the company's net income for the quarter stood at $39.6 million, up from $34.4 million in the prior year. This growth in net income was also reflected in the earnings per common share, which increased to $0.42 from $0.37 in the previous period. The average common shares outstanding also saw a slight increase, further indicating the company's growth trajectory.
Check out the company's full 8-K submission here.
