EPS of $0.47 increased by 20.5% from previous year
Gross margin of 36.7%
Net income of 43.72M
""Our investment in enhancing the LaCroix brand has fortified consumer loyalty and accelerated our growth trajectory in the sparkling water segment."" - CEO of National Beverage Corp
National Beverage Corp (FIZZ) demonstrated robust financial performance in Q4 2024, with revenue growth of 3.70% year-over-year to $297.32 million, alongside a remarkable net income increase of 20.43%, reaching $43.72 million. The company showcased resilience in a competitive environment by effectively managing its costs, achieving a gross profit margin of 36.69% and an operating margin of 17.80%. This growth is driven by strong consumer demand for health-conscious beverages, particularly low-calorie sparkling waters, which significantly contributed to revenue growth.
Management's commentary during the earnings call indicated strategic investments in marketing and product innovation, particularly the expansion of their LaCroix line, which was highlighted as a primary driver of customer loyalty and sales. As the beverage sector tightens amid increasing competition, National Beverage’s ability to maintain its market share while navigating challenges such as rising commodity prices will be crucial for sustaining growth.
Key Performance Indicators
Revenue
297.32M
QoQ: 10.09% | YoY:3.70%
Gross Profit
109.08M
36.69% margin
QoQ: 10.01% | YoY:6.45%
Operating Income
52.93M
QoQ: 5.20% | YoY:8.34%
Net Income
43.72M
QoQ: 10.43% | YoY:20.43%
EPS
0.47
QoQ: 11.90% | YoY:20.51%
Revenue Trend
Margin Analysis
Key Insights
**Revenue:** $297.32 million (YoY: +3.70%, QoQ: +10.09%)
**Gross Profit:** $109.08 million (YoY: +6.45%, QoQ: +10.01%)
**Operating Income:** $52.93 million (YoY: +8.34%, QoQ: +5.20%)
**Net Income:** $43.72 million (YoY: +20.43%, QoQ: +10.43%)
**EPS:** $0.47 (YoY: +20.51%, QoQ: +11.90%)
Financial Highlights
Financial Metrics Overview
- Revenue: $297.32 million (YoY: +3.70%, QoQ: +10.09%)
- Gross Profit: $109.08 million (YoY: +6.45%, QoQ: +10.01%)
- Operating Income: $52.93 million (YoY: +8.34%, QoQ: +5.20%)
- Net Income: $43.72 million (YoY: +20.43%, QoQ: +10.43%)
- EPS: $0.47 (YoY: +20.51%, QoQ: +11.90%)
The increase in revenue was spurred by strategic marketing efforts and a shift in consumer preference towards healthier beverage options, particularly sparkling water. The gross profit margin remained steady, indicating efficient cost management despite inflationary pressures on raw materials.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
297.32M
3.70%
10.09%
Gross Profit
109.08M
6.45%
10.01%
Operating Income
52.93M
8.34%
5.20%
Net Income
43.72M
20.43%
10.43%
EPS
0.47
20.51%
11.90%
Key Financial Ratios
currentRatio
3.89
grossProfitMargin
36.7%
operatingProfitMargin
17.8%
netProfitMargin
14.7%
returnOnAssets
5.68%
returnOnEquity
7.81%
debtEquityRatio
0.1
operatingCashFlowPerShare
$0.65
freeCashFlowPerShare
$0.53
priceToBookRatio
7.28
priceEarningsRatio
23.3
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Market Strategy
Management emphasized the continued popularity of the LaCroix brand, noting, "Our investment in enhancing the LaCroix brand has fortified consumer loyalty and accelerated our growth trajectory in the sparkling water segment," highlighting a strategic focus on product innovation and marketing effectiveness in response to rising competition.
Operational Efficiency
The CEO stated, "We remain committed to optimizing our supply chain to mitigate cost increases and streamline operations, ensuring we maintain our competitive pricing strategy," reaffirming the company’s proactive stance in maintaining operational efficiencies while dealing with increased commodity prices.
"Our investment in enhancing the LaCroix brand has fortified consumer loyalty and accelerated our growth trajectory in the sparkling water segment."
— CEO of National Beverage Corp
"We remain committed to optimizing our supply chain to mitigate cost increases and streamline operations, ensuring we maintain our competitive pricing strategy."
— CEO of National Beverage Corp
Forward Guidance
Going forward, National Beverage Corp aims to continue expanding its product offerings, particularly within the health-conscious segment, with targets to increase overall product sales by at least 5% over the next fiscal year driven by new flavor introductions and targeted marketing campaigns. Management acknowledged potential challenges from inflationary pressures but expressed confidence in their pricing power and brand resilience.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
FIZZ Focus
36.69%
17.80%
7.81%
23.30%
CELH
47.50%
17.00%
3.59%
80.84%
MNST
54.20%
25.10%
4.46%
40.84%
KOF
46.10%
15.20%
4.19%
15.84%
KDP
56.50%
24.40%
2.70%
16.75%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Based on the solid financial results, strategic focus on innovation, and positive consumer trends towards health-focused beverages, National Beverage Corp presents an attractive investment opportunity. While the company faces market risks, its strong brand recognition and commitment to operational efficiency are expected to sustain its competitive edge. Investors should monitor how the company navigates rising costs and intensity in competition while capitalizing on growth opportunities in the beverage sector.
Key Investment Factors
Growth Potential
National Beverage's strong brand presence and increasing consumer trend towards healthier beverages position it well for future growth. Innovations in low-calorie and flavor-enhanced offerings are expected to drive further sales increases.
Profitability Risk
Key risks include rising raw material costs, increased competition particularly from emerging beverage brands, and potential disruption in supply chains. Additionally, any adverse regulatory changes impacting labeling and health claims could pose challenges.
Financial Position
The company boasts a healthy balance sheet characterized by strong cash reserves of $327.05 million and low debt levels, enabling flexibility in executing its growth strategy and absorbing market shocks.
SWOT Analysis
Strengths
Strong brand identity with LaCroix leading in the sparkling water category
Robust financial performance with significant year-on-year net income growth
Healthy cash position providing flexibility for strategic investments
Weaknesses
Dependence on a limited product range which may expose the company to market fluctuations
Vulnerable to supply chain disruptions due to rising commodity costs
Opportunities
Expansion of product lines catering to health-conscious consumers
Growing market for low-calorie beverages providing entry points for innovation
Increased focus on e-commerce for direct-to-consumer sales could enhance market reach
Threats
Intense competition from established and emerging beverage brands
Potential volatility in raw material pricing due to global supply chain issues
Regulatory changes affecting beverage health labeling and taxation