National Beverage Corp. reported second‑quarter 2025 results that showed a 1.0% year‑over‑year decline in net sales to $288.3 million, down from $291.2 million in the same period a year earlier. Net income rose to $46.4 million from $45.6 million, while basic earnings per share were $0.50, missing the consensus estimate of $0.51 by $0.01.
The revenue dip was driven by a combination of macro‑economic headwinds and a shift in product mix. Management cited higher commodity costs—particularly in sweetener and packaging—alongside a modest decline in volume for its flagship LaCroix line. The company offset some of the volume loss with price increases in its premium beverage segment, but the net effect was a 1% sales decline.
Despite lower sales, National Beverage’s operating income edged up to $58.0 million from $57.9 million year‑ago, reflecting disciplined cost management and a favorable mix toward higher‑margin flavored drinks. The company’s gross profit margin remained steady, indicating that price adjustments helped preserve profitability even as input costs rose.
In addition to the earnings release, the company completed a $20,000‑share repurchase before the quarterly blackout period, underscoring confidence in its cash‑flow generation. It also announced the launch of a new LaCroix flavor, Pineapple Coconut, slated for early 2026, as part of its ongoing product innovation strategy.
Management highlighted the broader economic environment as a key factor: “The quarter reflects the challenges many consumer‑facing companies face today—inflation, commodity cost increases, and cautious consumer spending. While these pressures contributed to a modest decline in net sales, our pricing and mix improvements helped lift operating profit and net income, demonstrating the resilience of our business model.” The company reiterated its focus on cost discipline and brand strength, noting that its long‑standing retailer relationships and consumer loyalty remain core assets.
Investors reacted negatively to the earnings miss, with analysts noting that the company fell short of revenue and EPS estimates. UBS reaffirmed a “Sell” rating, citing concerns about sales volume and the company’s ability to sustain growth in a challenging macro environment. The market’s response underscores the importance of meeting consensus expectations and the sensitivity of investor sentiment to earnings guidance.
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