BellRing Brands, Inc.

Good day and thank you for standing by. Welcome to the Bellring Brands Third Quarter Fiscal Year 2025 earnings conference call. At this time all participants are in listen only mode. After the speaker's presentation there will be a question and answer session. To ask a question during this session you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today Jennifer Meyer, Investor Relations for Bellring Brands. Please go ahead.

Good morning and thank you for joining us today for Bellring Brands Third Quarter Fiscal 2025 earnings call. With me today are Darcy Davenport, our president and CEO and Paul Road, 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. Before we're 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 through the nearest GAP measure see our press release issues yesterday posted on our website. With that I will turn the call over to Darcy.

Thanks Jennifer and thank you all for joining us this morning. We delivered another impressive quarter continuing to demonstrate our leadership position. Paul will go into more detail about the quarter's performance and how we expect to end the fiscal year. I plan to use my today to remind you of our company's unique value proposition and why we believe in our continued success. I have three key messages. The first the ready to drink shake category is on fire with a long runway of growth. Second premier proteins demand and brand fundamentals continue to show exceptional growth. And last we're building in our brand momentum positioning ourselves for many years of future growth. Let's get started. As you know our company's core focus is ready to drink shakes. It is no secret that this category remains one of the fastest growing categories in the entire store. It has incredible momentum with meaningful long-term potential. Protein is at the center of many macro trends including health and wellness, popularity of functional beverages, increases in GLP-1 usage and the constant consumer desire for convenience. Ready to drink shakes are thriving because they fit so well with the evolving lifestyles and values of today's consumers. RTDs grew 16% this quarter with 70% of that growth coming from volume. One in two households now consume RTD shakes and the category added five penetration points in the last year. This was the second highest household penetration increase of any category only behind prebiotic sodas. It is worth noting that premier protein contributed approximately one quarter of that growth more than any other brand in the category. Retailers have seen this category's potential and are getting behind it. Many leading retailers turn to us for guidance on how to accelerate their growth. As a category leader, we serve as the official category captain in several key retailers and advise many others. We provide thought leadership on aisle location, assortment, merchandising solutions and signage. And retailers are taking action. They're adding more space for RTDs, testing higher traffic aisle locations and expanding displays in and out of the aisle, all in service of accelerating awareness of the category among their shoppers. Concurrently, they are deemphasizing less productive and in many cases declining subsegments and brands which are weighing on their growth. Further adjustments of these underperformers remain a meaningful opportunity for the category. Success attracts competition, so it is not surprising to see new protein RTDs enter the category, especially in its biggest channel club. The increased interest, especially from large established CPG companies, further validates the long-term consumer relevance and staying power of this category. And in a low household penetration category, competition is good. It brings expanded shelf space, increased marketing spend, heightened focus on innovation and a drive to delight consumers, all with the net effect of increased household penetration and category growth. We continue to believe the category is in the early stages of growth. At 52% household penetration, it trails mature CPG categories which are often at 80 to 90%. The convenient nutrition category has a third or less of the space of similar size categories in the food channel, a compelling argument for more space. The combination of expanded distribution, new households and increased buy rate of existing users will propel this category for years to come. The convenient nutrition category will look vastly different in five to ten years from now and Premier Protein is positioned well to lead that evolution. My second message, Premier Protein's and brand fundamentals continue to show exceptional growth and strength. Premier Protein with RTD market share of 25% is the number one brand in the RTD segment as well as the number one brand in the broader convenient nutrition category. Our consumption grew 19% in Q3. Volume gains drove approximately 60% of this growth. The brand hit an all-time high in household penetration and remains the leader in the RTD category reaching .6% of consumers. Most encouragingly is that our loyalty and buy rate have remained strong, among the highest in the category. Retails look to us for thought leadership and as a proven brand. We are the number one Velocity brand with the overwhelming majority of our products in the top third of the category. Our brand continues to win incremental shelf space with Premier Protein Shake TDPs of 34%. Premier Protein continues to be the go-to brand within the RTD category because of its mainstream appeal, unbelievable taste, and category-leading loyalty. The third and final message, we've built strong momentum and we are now taken to the next level, positioning ourselves for many years of growth. Key enablers will be increased brand support, distribution expansion both in and out of the aisle, and innovation. Starting with brand support, as a reminder, in late December, we launched our first media campaign since 2021 and results show a strong ROI. In July, we introduced our second wave of media which features our updated packaging. The new packaging which started to roll in July brings a modern look that improves discoverability at the shelf and raises our appeal to younger consumers. Consumer and retailer feedback has been overwhelmingly positive. In addition to increasing brand support, we are boosting in-store investments via promotion, display, and demos. We know from experience, promotions, and more importantly, the displays come along with them are key to reaching new households and growing our business. We are aggressively pursuing merchandising in aisle and throughout the store. We have established a dedicated team in addition to a new broker partner to expand our merchandising and consumer touch points across the store. These include palette displays, end caps, and more recently, single-serve bottles and coolers. Distribution continues to be a major opportunity. We generate 11% of the convenient nutrition category sales but only a 4% share of shelf. In Q4, we will continue to gain TDPs on our core products, single-serve bottles, new innovation, as well as a short-term incremental palette position at a key club retailer. We spent the last four years developing a scalable, regionally diverse co-manufacturing network and now have the capacity to aggressively pursue distribution and take advantage of these valuable retail opportunities. Lastly, we are accelerating our efforts around innovation. Recall we launched two new shake lines this year. The first, our indulgence line, targets an incremental consumption occasion while still delivering on the nutritionals that our consumers expect from the premier brand. We are pleased with this line's performance today. Momentum continues to build and it recently gained distribution and club. The second line, almond milkshakes, our first non-dairy protein offering, launched in late June. These shakes made with real almond milk deliver great tasting nutrition without artificial colors, flavors, or sweeteners. Early results are promising and mark our first step of many toward more wholesome offerings. Our innovation pipeline is rich and is packed with both close-in innovation that has made us successful, like flavor leadership, pack size, and format expansion, as well as big eye innovation, which will be more disruptive and focuses on incremental consumers and occasions. We are committed to bringing continued excitement to our consumers and retail partners for years to come. In closing, the RTD category has strong momentum. Retailers are starting to really lean into this category. The premier protein brand is leading the charge as the number one brand with scale and a ton of upside. Premier protein sells 36 shakes per second, but the brand still has only 20% household penetration, clearly highlighting our consumer loyalty and a long runway for growth. I'm proud of our performance to date with another above algorithm year. Our teams are energized by the momentum we've built and excited about the opportunity that is ahead of us. Our confidence in the long-term outlet for Bellring remains high. Thank you for your interest in the company. I will now turn the call over to Paul.