BellRing Brands, Inc.

After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today. Jennifer Meyer, Investor Relations for Bellring Brands. Please go ahead.

Good morning, and thank you for joining us today for Bellring Brands' second quarter fiscal 2024 earnings call. With me today are Darcy Davenport, our President and CEO, and Paul Rode, our CFO. Darcy and Paul will begin with prepared remarks, and afterwards, we'll have a brief question and answer session. The press release and supplemental slide presentation that supports these remarks are posted on our website, in both the investor relations and the SEC filing sections at bellring.com. In addition, the release and slides are available on the SEC's website. Before we continue, I would like to remind you that this call will contain forward-looking statements which are subject to risks and uncertainties that should be carefully considered by investors as actual results could differ materially from these statements. These forward-looking statements are current as of the date of this call and management undertakes no obligation to update these statements. As a reminder, this call is being recorded and an audio replay will be available on our website. And finally, this call will discuss certain non-GAP measures. For reconciliation of these non-GAP measures to the nearest GAP measure, see our press release issued yesterday and posted on our website. With that, I will turn the call over to Darcy.

Thanks, Jennifer, and thank you all for joining us. Last evening, we reported our second quarter results and posted a supplemental presentation to our website. I'm happy to share that we had an excellent first half with Q2 results above our expectations. The business continues to accelerate as we bring on new shake capacity and begin to drive demand. For the first time since 2021, we executed two successful club promotions in one quarter, which sparked a ton of consumer and retailer excitement. Net sales grew 28% over prior year and adjusted EBITDA was up 53%. Our greater than expected shake demand, specifically non-promoted, drove the net sales and adjusted EBITDA margin outperformance. As you saw in yesterday's press release, we raised our outlook for the year. We now expect net sales to grow 16 to 19% over fiscal 23 and adjusted EBITDA to grow 18 to 24%. This raise at the top and the bottom line was based on better than expected first half performance strong consumption trends, confidence in our capacity expansion, and our decision to execute a price increase on shakes late in Q4. Moving to shake production. We have made remarkable progress in our plan to grow and diversify our shake supply. We are making more shakes every quarter with Q2 production coming in as expected and up significantly versus the year-ago quarter. We remain on track to grow production north of 20% this year, enabling strong net sales growth in 24 and increased weeks of supply by year end. Now to the category and brand updates. The convenient nutrition category grew 5% in Q2 as tailwinds around health and wellness and fitness continued to drive growth. Consumer interest in functional beverages and sports nutrition products continues to be high. with mainstream ready-to-drink brands driving most of the growth and bringing new households into the category. RTD led the category of 10%, driven by promotions and distribution gains. Ready-to-Mix grew 3%, slowing this quarter as consumers traded down to value brands and switched to other high-protein products, including RTDs. Despite this change in consumer behavior, our powder brands still outperform the tracked category. Premier protein shake consumption growth remained strong this quarter at 29%. Growth was robust across all channels in Q2 driven by promotions, strong velocities, and distribution expansion. The highest growth was in mass and e-commerce. Mass benefited from display activity and distribution gains, while e-commerce saw strong growth behind promotional events. The club channel, boosted by successful promotions at both of the major club retailers, drove healthy volume lifts and household penetration. April consumption remained strong, up 16%, despite some out-of-stocks in track channels. Flavors continue to drive retailer and consumer excitement. Our newest 30-gram flavor cookie dough is performing well, with top 10% velocities in mass. Our seasonal flavor Salted caramel popcorn saw solid success. Our brand metrics remain healthy. Premier Protein with RTD market share of 21% maintained its top position as the number one brand in the RTD segment, as well as the number one in the broader convenient nutrition category. TDPs grew 33% over the prior year quarter, but saw a slight sequential decline. With shake supply remaining tight and demand greater than expected this quarter, we experienced some temporary out-of-stocks late in the quarter and into April. Retail or inventory levels are starting to improve, with TDPs stabilizing, and we expect further improvement throughout the second half. I'm pleased to see the brand reach another all-time high in household penetration this quarter, reaching over 18% of households. Premier Protein added one percentage point of household penetration versus Q1 and grew 26% over prior year. As of Q1, the brand was a significant contributor to the overall RTD category growth. Premier Protein's household penetration continues to be the highest in the category and we expect modest growth in the remainder of fiscal 24. With the RTD segments household penetration below categories such as nutrition bars and energy drinks, we still see tremendous opportunity to grow in our existing channels. Premier Protein Powder continued its strong trajectory, growing 52% in Q2 behind brand investments, distribution gains, and strong velocities. We remain encouraged by the growth potential of the Premier Protein brand in this format. Premier powders continue to bring mainstream consumers into the category with 80% of its growth coming from outside the category. Its household penetration reached 1.7% this quarter and we continue to believe that the brand will be a contributor to mainstreaming the powder category in the same way Premier did for the ready to drink category. Our licensing strategy continues to perform well with cereal and frozen pancakes, attracting new consumers to the brand. Although not a significant revenue driver, these two products boost Premier's overall household penetration to 19%, or nearly one in five households. Turning to Dymatize. U.S. consumption remains strong in mainstream FDM channels, but overall consumption declined 8%, weighed down by ongoing softness in specialty channels and increased competitive activity in e-commerce. Despite these headwinds, I'm encouraged to see the brand maintain its record high household penetration with TDPs and share holding steady. Looking forward, we are increasing our investment behind the brand, both in marketing and promotion. We are excited to expand our national marketing campaign with San Francisco All-Pro running back Christian McCaffrey. We are eager to see the impact that enhanced digital marketing and a top-tier influencer will have on the brand awareness and household penetration. Last, we are putting the final touches on innovation that will expand Dymatize's product line. Overall, we continue to be bullish on the mainstream powder opportunity with two complementary brands. In closing, our excellent first half results position us well for an above-algorithm fiscal year. Our confidence in the long-term outlook for Bellring remains strong. Our brands are leaders in the highest growth areas of an on-trend category. Ready-to-drink and powder segments are in the early stages of growth with major tailwinds. Premier Protein and Dymatize are leading mainstream brands with low household penetration and strong loyalty. Our momentum continues to grow on shakes as we start to layer in promotion. Our shake capacity plan is on track to support many years of robust growth. I'm excited to see the momentum continue into 2025 as we layer in more innovation and national marketing. Thank you for your interest in our company. We look forward to sharing our progress next quarter. I'll now turn the call over to Paul.