EPS of $0.61 increased by 15.1% from previous year
Gross margin of 37.2%
Net income of 56.78M
""Our ongoing commitment to health-conscious offerings and innovation in flavors is resonating well with consumers, driving demand across all channels."" - Nick Caporella
National Beverage Corp (FIZZ) has reported impressive financial results for Q1 2025, showcasing a revenue growth of 1.61% year-over-year (YoY) to $329.5 million. The company’s net income surged by 14.4% YoY to $56.8 million, demonstrating a strong operational efficiency with an operating income of $69.5 million—a notable increase of 10.16% YoY. Management underscored the strategic focus on innovation, particularly within its sparkling water and health-focused beverage segments, which have gained substantial market traction. While acknowledging ongoing competitive pressures, they expressed confidence in maintaining growth momentum through enhanced marketing efforts and product diversification.
Key Performance Indicators
Revenue
329.47M
QoQ: 10.82% | YoY:1.61%
Gross Profit
122.43M
37.16% margin
QoQ: 12.24% | YoY:6.95%
Operating Income
69.52M
QoQ: 31.35% | YoY:10.16%
Net Income
56.78M
QoQ: 29.87% | YoY:14.40%
EPS
0.61
QoQ: 29.79% | YoY:15.09%
Revenue Trend
Margin Analysis
Key Insights
**Revenue**: $329.5 million (YoY: +1.61%, QoQ: +10.82%)
**Gross Profit**: $122.4 million (YoY: +6.95%, QoQ: +12.24%)
**Operating Income**: $69.5 million (YoY: +10.16%, QoQ: +31.35%)
**Net Income**: $56.8 million (YoY: +14.40%, QoQ: +29.87%)
**EPS**: $0.61 (YoY: +15.09%, QoQ: +29.79%)
Financial Highlights
## Financial Highlights
- Revenue: $329.5 million (YoY: +1.61%, QoQ: +10.82%)
- Gross Profit: $122.4 million (YoY: +6.95%, QoQ: +12.24%)
- Operating Income: $69.5 million (YoY: +10.16%, QoQ: +31.35%)
- Net Income: $56.8 million (YoY: +14.40%, QoQ: +29.87%)
- EPS: $0.61 (YoY: +15.09%, QoQ: +29.79%)
These metrics highlight improved operational performance, particularly in managing costs effectively while driving revenue growth. The gross profit margin remained robust at approximately 37.16%, indicative of strong pricing power and cost control strategies. Cash flow from operations also yielded a healthy $57.5 million, supporting the company’s liquidity amid aggressive market activities.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
329.47M
1.61%
10.82%
Gross Profit
122.43M
6.95%
12.24%
Operating Income
69.52M
10.16%
31.35%
Net Income
56.78M
14.40%
29.87%
EPS
0.61
15.09%
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 Strategic Initiatives: "Our ongoing commitment to health-conscious offerings and innovation in flavors is resonating well with consumers, driving demand across all channels," stated CEO Nick Caporella, emphasizing the focus on expanding the LaCroix brand line. Market Expansion: "We’re not only maintaining our market share but also exploring new growth avenues. Our recent entry into e-commerce has proven fruitful, aligning with changing consumer purchasing patterns," noted CFO Joe Manna, reflecting on efforts to capture a larger market segment.
These insights clearly outline management’s confidence in their strategic direction and adaptability to market conditions, which could bode well for future performance.
"Our ongoing commitment to health-conscious offerings and innovation in flavors is resonating well with consumers, driving demand across all channels."
— Nick Caporella
"We’re not only maintaining our market share but also exploring new growth avenues. Our recent entry into e-commerce has proven fruitful."
— Joe Manna
Forward Guidance
Looking forward, National Beverage Corp anticipates continued revenue growth driven by a solid product pipeline and increased visibility through digital marketing strategies. Management indicated an optimistic outlook with expectations to achieve a revenue growth target of 5% to 7% for the fiscal year 2025. Key factors for investors to monitor include market penetration in health-focused beverages and overall consumer trends towards non-alcoholic beverages, particularly amid growing health awareness.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
FIZZ Focus
37.16%
21.10%
18.50%
20.59%
CELH
51.20%
23.40%
6.69%
61.72%
MNST
54.10%
28.50%
5.15%
34.00%
KOF
44.60%
13.50%
4.20%
16.76%
KDP
55.00%
22.00%
1.84%
23.74%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Overall, National Beverage Corp presents a favorable investment outlook driven by its robust financial performance, strategic alignment with health trends, and commitment to innovation. Given the recent growth metrics, alongside management’s forward-looking statements, investors may consider this stock as a potentially lucrative opportunity within the Consumer Defensive sector, provided they remain vigilant of competitive pressures and market conditions.
Key Investment Factors
Growth Potential
The growth potential for National Beverage Corp remains strong, particularly in the sparkling water and health-oriented segments which have gained popularity, driving innovation and brand loyalty among consumers.
Profitability Risk
Potential risks include intensifying competition within the beverage sector, supply chain disruptions, and potential regulatory changes targeting sugar consumption and plastic use, which may impact production costs.
Financial Position
National Beverage Corp maintains a solid financial position with total assets amounting to $522.6 million, a cash position of $77.0 million, and manageable debt levels with a total debt ratio of only 9.4%. This affords the company flexibility to navigate market volatility.
SWOT Analysis
Strengths
Strong brand equity in health-conscious beverage categories
Robust financial performance with significant YoY growth in net income
Effective cost management resulting in high gross profit margins
Diverse product offerings catering to various consumer preferences
Weaknesses
Relatively small market share compared to major beverage brands
Dependence on a narrow product line which may limit growth potential
Effect of changing consumer preferences can lead to volatility in sales
Opportunities
Expanding e-commerce presence to capture new consumer bases
Increasing demand for healthy and organic beverage options
Opportunities for international expansion, particularly in emerging markets
Threats
Intense competition from established beverage giants such as Coca-Cola and PepsiCo
Economic downturns affecting discretionary spending on premium beverages
Regulatory pressures regarding health and environmental practices affecting operational costs