EPS of $0.61 increased by 29.8% from previous year
Gross margin of 37.2%
Net income of 56.78M
""Our focus on introducing new flavors and health-oriented beverages has significantly resonated with consumers, driving our sales to new heights."" - Management
National Beverage Corp (0K50.L) recorded robust financial performance in Q1 2025 with a total revenue of $329.47 million, reflecting a 9.80% year-over-year increase and a 10.82% increase quarter-over-quarter. The company's net income surged to $56.78 million, a 29.67% increase year-over-year, supported by increased demand for its core products such as sparkling waters and health-focused beverages.
Management highlighted a continued shift towards healthier alternatives in consumer preferences, positioning National Beverage Corp favorably in the market. The quarter's results not only underscore its operational efficiency but also demonstrate the effectiveness of its strategic initiatives aimed at capturing a larger market share among health-conscious consumers. This persistence in innovation and market adaptability should instill confidence among investors.
Key Performance Indicators
Revenue
329.47M
QoQ: 10.82% | YoY:9.80%
Gross Profit
122.43M
37.16% margin
QoQ: 12.24% | YoY:13.51%
Operating Income
69.52M
QoQ: 31.35% | YoY:28.02%
Net Income
56.78M
QoQ: 29.87% | YoY:29.67%
EPS
0.61
QoQ: 29.79% | YoY:29.79%
Revenue Trend
Margin Analysis
Key Insights
**Revenue**: $329.47 million (YoY: +9.80%, QoQ: +10.82%)
**Gross Profit**: $122.43 million (YoY: +13.51%, QoQ: +12.24%)
**Operating Income**: $69.52 million (YoY: +28.02%, QoQ: +31.35%)
**Net Income**: $56.78 million (YoY: +29.67%, QoQ: +29.87%)
**Earnings Per Share (EPS)**: $0.61 (YoY: +29.79%, QoQ: +29.79%)
Financial Highlights
### Financial Metrics Overview
- Revenue: $329.47 million (YoY: +9.80%, QoQ: +10.82%)
- Gross Profit: $122.43 million (YoY: +13.51%, QoQ: +12.24%)
- Operating Income: $69.52 million (YoY: +28.02%, QoQ: +31.35%)
- Net Income: $56.78 million (YoY: +29.67%, QoQ: +29.87%)
- Earnings Per Share (EPS): $0.61 (YoY: +29.79%, QoQ: +29.79%)
The company's gross margin stood at approximately 37.2%, which reflects effective cost management amidst rising raw material costs. National Beverage Corp's operating margin improved to approximately 21%, indicating a solid management of operating expenses as it seeks to expand its market footprint.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
329.47M
9.80%
10.82%
Gross Profit
122.43M
13.51%
12.24%
Operating Income
69.52M
28.02%
31.35%
Net Income
56.78M
29.67%
29.87%
EPS
0.61
29.79%
29.79%
Key Financial Ratios
currentRatio
1.99
grossProfitMargin
37.2%
operatingProfitMargin
21.1%
netProfitMargin
17.2%
returnOnAssets
10.9%
returnOnEquity
18.5%
debtEquityRatio
0.17
operatingCashFlowPerShare
$0.62
freeCashFlowPerShare
$0.58
dividendPayoutRatio
536%
priceToBookRatio
15.25
priceEarningsRatio
20.59
Net Income vs. Revenue
Expense Breakdown
Management Commentary
### Management Insights
- Product Innovation: Management noted, "Our focus on introducing new flavors and health-oriented beverages has significantly resonated with consumers, driving our sales to new heights."
- Market Conditions: On market trends, they stated, "The trend towards healthier living continues to drive consumption patterns, and we are well-prepared to meet this demand with our innovative portfolio."
These insights point to a steadfast commitment to aligning product offerings with consumer preferences, which is critical for sustaining growth in the highly competitive non-alcoholic beverage sector.
"Our focus on introducing new flavors and health-oriented beverages has significantly resonated with consumers, driving our sales to new heights."
â Management
"The trend towards healthier living continues to drive consumption patterns, and we are well-prepared to meet this demand with our innovative portfolio."
â Management
Forward Guidance
Looking forward, management indicated an optimistic outlook, targeting a revenue growth of 10-12% for Q2 2025 driven by increased consumer demand for health-conscious products and strategic marketing initiatives. They emphasized, "We are committed to enhancing our distribution networks, which we believe will further strengthen our market position. Investors should monitor fluctuations in raw material costs and shifts in consumer preferences as these remain pivotal to our growth trajectory."
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
0K50.L Focus
37.16%
21.10%
18.50%
20.59%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
The investment outlook for National Beverage Corp remains favorable driven by strong financial performance and emerging opportunities in the health-centric beverage market. Given management's commitment to innovation and a strategic focus on consumer trends, the company appears well-positioned to deliver sustained growth, supported by a robust balance sheet and effective operational strategies. However, investors should remain vigilant regarding market dynamics and potential risks associated with raw material costs.
Key Investment Factors
Growth Potential
National Beverage Corp's growth potential is bolstered by its innovative product offerings and strategic marketing efforts aimed at capturing consumer trends toward health-conscious beverages.
Profitability Risk
Key risks include fluctuations in raw material prices, increased competition in the beverage market, and potential regulatory challenges regarding health claims.
Financial Position
The financial position remains strong, with a current ratio of 1.99 indicating good short-term liquidity and a robust cash flow supported by positive operating activities.
SWOT Analysis
Strengths
Strong brand portfolio with recognized products like LaCroix and Rip It
Robust financial performance with increasing revenue and profit margins
Effective cost management and operational efficiency
Weaknesses
Limited international presence compared to larger global competitors
Dependence on a few key brands for a significant portion of revenue
Opportunities
Expansion into new markets particularly focusing on health-conscious demographics
Innovation in product offerings to capture emerging trends in the beverage industry
Threats
Intense competition from both established and emerging brands in the beverage sector
Volatility in raw material prices affecting gross margins