BellRing Stock Tumbled After Earnings. Dairy Tariffs Were Just Part of the Problem.

BellRing Brands produces Premier Protein shakes. (Dreamstime)

Key Points

• BellRing Brands’ stock initially fell nearly 15% due to disappointing quarterly earnings and a cautious outlook but recovered to trade about 1% higher.
• For fiscal year 2025, BellRing reported net sales of $2.32 billion, a 16.1% increase, but earnings per share decreased to $1.68 from $1.86.
• BellRing anticipates continued cost pressures in 2026, with tariffs expected to reduce margins by approximately 1.2 percentage points.

Stock in BellRing Brands , the owner of the protein-shake brand Premier Protein and the protein-powder brand Dymatize, tumbled nearly 15% at the market open in response to disappointing quarterly earnings and a warning about the outlook.

While the volatility triggered a pause in trading, shares of the former market darling regained the lost ground, trading about 1% higher at $25.91 in late afternoon.

For the quarter ended in September, the final three months of its 2025 fiscal year, BellRing posted net sales of $648.2 million, up 16.6% from a year earlier and roughly in line with Wall Street estimates. Adjusted earnings came in at 48 cents a share, seven cents less than in the same quarter a year ago. The consensus call among analysts surveyed by FactSet was for 51 cents.

Net sales of Premier Protein increased 14.9% from a year earlier because the brand is finding its way into more households and the distribution network is growing, said CEO Darcy Davenport. Promotional events have played a role too, he said.

While sales of Dymatize increased 32.9% from ago, that was mainly due to retailers building up inventories ahead of an expected price increase. Sales at the retail level, a better measurement of consumption, fell 1.5% from a year ago.

BellRing’s profit margins shrank, partly because of higher prices for whey protein, an important ingredient. Increased promotional activity and packaging redesign costs played a role as well.

Sales for fiscal 2025 came in at $2.32 billion, up 16.1% from fiscal 2024. Earnings per share fell to $1.68 from $1.86.

Until May, when management disclosed a significant dos of bad news, BellRing stock was on a tear, benefiting from rising protein demand and a growing workout crowd. The stock peaked at more than $80 and traded at 35 times forward earnings.

That month, BellRing disclosed that several key retailers had begun to reduce inventory, which would cut further sales. News of the destocking also cast doubt on whether consumer demand remained robust.

Cost pressures will likely continue in 2026. The effects of tariffs on dairy protein—often sourced from New Zealand and the European Union—are expected to kick in next year. While BellRing has mitigated much of its tariff exposure, management expects the levies to shave its margins by approximately 1.2 percentage points in 2026.

The cost of whey protein is expected to stay at record levels at least through the first half of 2026. BellRing also plans to continue its promotional events and boost advertising spending next year, which could further squeeze margins.

The first quarter might be especially tough. The company expects sales to decline 5% year over year, but said things should improve in the rest of 2026.

For all of fiscal 2026, BellRing expects net sales between $2.41 billion and $2.49 billion, representing 4% to 8% growth. It forecast adjusted earnings before interest, taxes, depreciation, and amortization of between $425 million and $455 million.

Write to Evie Liu at evie.liu@barrons.com