National Beverage Corp. Reports Q3 and Nine-Month Results for Fiscal 2025

National Beverage Corp. reported its financial results for the third quarter and first nine months of fiscal 2025, revealing a slight decline in net sales but an increase in gross profit. For the three months ended January 25, 2025, net sales totaled $267.1 million, a decrease of 1.1% from $270.1 million in the same period last year. The decline was attributed to a 3.4% decrease in case volume, which was partially offset by a 2.2% increase in the average selling price per case. Gross profit for the quarter increased to $99.0 million, up from $97.0 million, driven by higher average selling prices and reduced packaging costs, resulting in a gross margin improvement to 37.1% from 35.9%.

For the first nine months of fiscal 2025, net sales decreased by 0.7% to $887.7 million compared to $894.4 million in the prior year. This decline was similarly influenced by a 2.3% decrease in case volume, although it was partially mitigated by a 1.7% increase in average selling price per case. Gross profit for this period rose to $330.7 million from $319.4 million, with gross margin increasing to 37.3% from 35.7%, reflecting a decrease in average cost of sales per case.

The company’s selling, general, and administrative expenses for the third quarter decreased slightly to $48.4 million from $48.9 million, primarily due to reduced marketing and selling costs. For the first nine months, these expenses totaled $152.8 million, down from $153.8 million in the previous year. The effective income tax rate for the third quarter was 23.7%, up from 21.0% in the prior year, while for the first nine months, it was 23.4%, compared to 22.8% previously.

In terms of liquidity, National Beverage's cash and cash equivalents decreased to $149.2 million as of January 25, 2025, down from $327.0 million at the end of the previous fiscal year, largely due to a special cash dividend of $304.1 million paid in July 2024. The company maintained unsecured credit facilities totaling $150 million, with no borrowings outstanding. The working capital decreased to $233.0 million from $398.9 million, reflecting the impact of the dividend payment.

Looking ahead, National Beverage Corp. aims to continue its focus on developing healthier beverage options in response to changing consumer preferences. The company is also exploring opportunities for geographic expansion and enhancing its product portfolio to cater to a diverse customer base. The management remains optimistic about navigating market challenges and leveraging its innovative marketing strategies to drive future growth.