National Beverage Corp. has announced its financial results for the second quarter and the six-month period ending October 26, 2024, showing continued growth in earnings and improved margins despite facing various challenges.
Second Quarter Results:
- Net Sales: $291 million
- Gross Margin: Improved to 38% of net sales
- Operating Income: Increased by 7% to $58 million
- Earnings Per Share: Rose to $0.49 from $0.47 in the prior year
Six-Month Results:
- Net Sales: Totaled $621 million
- Operating Income: Grew by $10 million to $127 million
- Net Income: Increased by 10% to $102 million, or $1.09 per share
A spokesperson for the company expressed satisfaction with the results, particularly given the challenges faced during the period. “We are pleased to report increased earnings and margin improvements during a challenging period,” they said. “Among the obstacles were changes in consumer shopping habits and reduced purchasing power, which affected many sectors of the consumer products market. In the second quarter, net sales declined by 3% due to lower volumes in August and September. However, we are optimistic about future growth prospects due to improved volume in October and a recent uptick in consumer confidence.”
Impact of Natural Disasters
The company also acknowledged the impact of severe weather on its operations. “The record-setting storms that ravaged large areas of the Southeastern US during our second quarter led to significant supply chain disruptions and multiple store closures, which affected our customers. However, the effects on our business are minimal in comparison to the hardships and loss experienced by the residents who are now working to rebuild their lives,” the spokesperson added.
Despite these difficulties, the company noted an improvement in its operational performance. “Reflecting Team National’s continued focus on margin management, we achieved improved operating margins for the 8th consecutive quarter. Additionally, our operating profit per case increased by 12%,” the spokesperson said.
Focus on Innovation and New Products
National Beverage continues to prioritize innovation as a key part of its strategy to delight consumers. A standout in their portfolio is LaCroix’s new product, Strawberry Peach, launched at the beginning of the second quarter. This new flavor combines the sweet, vibrant taste of strawberries with the luscious flavor of peaches, creating a fresh, fragrant drink that has received a highly positive response from consumers.
“Strawberry Peach has been exceptionally well-received, and we expect it to be available nationwide by the end of the year,” the spokesperson noted. “We’re also excited to announce that additional LaCroix creations, featuring stimulating, unique flavors and bright, vibrant packaging, are scheduled to be released soon.”
In addition to product innovation, National Beverage has been expanding its marketing efforts. The company has increased the number of in-store merchandising teams and sampling ambassadors in new cities to further boost consumer engagement. “Our marketing campaigns focus on increasing brand awareness through social media, consumer events, influencers, digital marketing, and sponsorships of professional sports teams and podcasts,” the spokesperson explained.
Positioned for Long-Term Success
Despite the challenges faced in the second quarter, National Beverage remains confident about its ability to navigate short-term obstacles while maintaining its long-term growth trajectory. The company’s strong balance sheet and entrepreneurial management approach position it well to weather future challenges.
“We are especially grateful during this time of year for the continued loyalty of our consumers, retail partners, shareholders, and all of Team National,” the spokesperson concluded. “We extend our special blessings, peace, and joy to all.”
Conclusion
National Beverage Corp. continues to show resilience with improved earnings and margin growth, even in the face of challenges like shifting consumer behaviors and severe weather disruptions. With a focus on product innovation, strategic marketing, and a strong balance sheet, the company is well-positioned to maintain its positive momentum and deliver sustainable long-term performance.
