National Beverage Corp. (NASDAQ: FIZZ) has reported its financial results for the second quarter and six-month periods ended October 26, 2024, compared to the prior year. In the second quarter, net sales were $291 million, down from $300 million in the same period last year. However, the gross margin improved to 38% of net sales, up from the previous year. Operating income grew 7% to $58 million, and earnings per share increased to $0.49 from $0.47.
For the six-month period, net sales were reported at $621 million, and operating income grew by $10 million to $127 million. Net income increased by 10% to $102 million, or $1.09 per share.
The company faced challenges due to changes in consumer shopping habits and reduced purchasing power, which affected many consumer products. Second-quarter net sales declined by 3% due to volume shortfalls in August and September. The company is, however, optimistic about future growth prospects due to increased volume for October and the recent improvement in consumer confidence.
National Beverage Corp. also highlighted its focus on margin management, with second-quarter operating margins improving for the eighth consecutive quarter and operating profit per case increasing by 12%.
The company's innovation strategy aims to delight consumers, with the launch of a new product, Strawberry Peach, which has received a positive consumer response. The company anticipates it will be available nationwide by the end of the year, and additional products with unique flavors and packaging are scheduled for release soon.
National Beverage Corp. has expanded its in-store merchandising teams to new cities and increased its staff of in-store sampling ambassadors. The marketing efforts are focused on increasing brand awareness and include social media, consumer events, influencers, digital marketing, and sponsorships.
Despite the challenges, the company expressed gratitude for the continued loyalty of its consumers, retail partners, shareholders, and team members, and emphasized its strong balance sheet and entrepreneurial management focus.
In terms of financial performance, net sales for the trailing twelve months ended October 26, 2024, were $1.188 billion, compared to $1.179 billion in the previous period. Net income for the same period was $185.73 million, up from $164.08 million. Earnings per share also saw an increase, with basic EPS at $1.99 compared to $1.76 in the previous period.
The market has reacted to these announcements by moving the company's shares -6.5% to a price of $46.32. Check out the company's full 8-K submission here.
