The protein products maker reduced its annual adjusted EBITDA forecast to $275-295m due to $28m in inventory-related charges.
BellRing Brands lowered its annual adjusted EBITDA guidance to $275-295m from $315-335m, citing $28m in inventory-related costs. The company recorded $21.3m of these charges in Q2 and Q3, including $11.3m for a third-party ingredient quality issue and $10m for excess shake bottle inventory.
Net sales for Q3 rose 4% to $570.4m, driven by a 1.7% volume increase and a 2.5% rise in price/mix. BellRing now expects annual net sales growth of 1-3% to $2.335-$2.375bn, up from a prior 0-2% forecast.
The company also anticipates $7m in additional trade spending in Q4 to address excess inventory ahead of fiscal year-end.