Sports Nutrition Stocks are on Fire Heading into the Fall (USNA, GTEH, HLF, BRBR, CELH, SMPL, MSLP, GLAPY, WW)

According to a recent report from Grand View Research, the global sports nutrition market size was valued at $10.7 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 10.9% from 2021 to 2028. 

The report notes a rise in the number of consumers focused on self-care and preventive medication and fitness. Moreover, awareness of the increased risk of serious illness in COVID-19 patients suffering from obesity, diabetes, and heart diseases is growing.

In addition, the number of consumers with lifestyle diseases such as diabetes, and obesity is growing rapidly. According to International Diabetes Federation, 463 million adults between 20 and 79 years suffered from diabetes in 2019, which is estimated to increase to 700 million by 2045. 

All these factors are estimated to increase participation in fitness activities and drive the consumption of different supplements including sports nutrition products during the forecast period.

That makes the space one of the fastest growing niches in the retail marketplace, which itself is growing rapidly due to the broad post-Covid global economic recovery. It is also a popular area of interest for younger investors, who are gaining traction as a key swing demographic defining trends in this retail-driven bull market.

This should point investors to key players in the space. We take a closer look at several of the most interesting below.

 

Bellring Brands Inc (NYSE:BRBR) is a new and interesting name in the space. The stock has been trending higher as it demonstrates growth along several lines.

BRBR frames itself as a rapidly growing leader in the global convenient nutrition category. Its primary brands, Premier Protein and Dymatize, appeal to a broad range of consumers across all major product forms, including ready-to-drink protein shakes, powders and nutrition bars, and are distributed across a diverse network of channels including club, food, drug, mass, eCommerce, specialty and convenience. 

Bellring Brands Inc (NYSE:BRBR) recently announced results for its third fiscal quarter ended June 30, 2021, including net sales of $342.6 million, operating profit of $51.5 million, net earnings available to Class A common stockholders of $9.5 million, adjusted net earnings available to Class A common stockholders of $11.8 million and Adjusted EBITDA of $70.5 million, and a guidance boost, raising fiscal year 2021 net sales guidance to $1.25-$1.28 billion and adjusted EBITDA (non-GAAP) guidance to $230-$236 million.

The company also offered a view on handling a covid context: “BellRing continues to closely monitor the impact of the COVID-19 pandemic on its business and remains focused on ensuring the health and safety of its employees and serving customers and consumers. BellRing’s primary categories returned to growth rates in line with their pre-pandemic levels during the fourth quarter of fiscal 2020 and have remained strong in subsequent periods. As of June 30, 2021, BellRing had $89.4 million in cash and cash equivalents and the available borrowing capacity under BellRing LLC’s revolving credit facility was $200.0 million.”

Even in light of this news, BRBR hasn’t really done much of anything over the past week, with shares logging no net movement over that period. Shares of the stock have powered higher over the past month, rallying roughly 4% in that time on strong overall action. 

Bellring Brands Inc (NYSE:BRBR) managed to rope in revenues totaling $342.6M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 67.8%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($89.4M against $264.4M, respectively).

 

GenTech Holdings Inc (OTCMKTS:GTEH) is one of the most interesting names in the space because it has undertaken an aggressive and successful roll-up strategy over the past year that the market seems to have ignored, leading to outsized upside potential.

The company brands itself as an emerging leader in the Functional Foods marketplace that owns and operates leading functional foods brand, SINFIT Nutrition, which offers a range of high-end Functional Foods. It has also recently acquired a number of growing brands with commercial exposure, including Fizzique, MPB Snacks, NXT Bar, Nature Soothie, and Yourganics, all of which can claim numerous significant awards and wide distribution, including exposure in major retail marketplaces.

GenTech Holdings Inc (OTCMKTS:GTEH) announced just this morning that it has acquired American Metabolix (www.AmericanMetabolix.com), one of the fastest growing supplement companies in the world, with sports nutrition and Keto products available at GNC, Bodybuilding.com, and top sports nutrition retailers worldwide.

According to its release, American Metabolix products have sold in over 550 brick and mortar locations across multiple countries, including the United States, New Zealand, Australia, and Russia, among others. The company was founded in 2012 by Jason Duran and Markus Trillsch, both of whom have established themselves as experienced innovators in the sports supplement industry, developing multiple disruptive brands and products. American Metabolix has gone on to win awards in every relevant category in its market space as a sports nutrition and supplements brand. According to documents from the company, American Metabolix has produced approximately $400k in sales since early Feb, and is on track to exceed $1 million in 2021 revenues.

Management notes that August revenues across all of GenTech’s recent roll-up acquisitions, including American Metabolix, add up to an annualized run rate of more than $2.3 million on the top line, not including any growth curve extrapolation.

GenTech Holdings Inc (OTCMKTS:GTEH) CEO, David Lovatt, commented, “American Metabolix is a heavyweight addition to our roll-up portfolio, presenting significant individual value and growth as well as multiple synergies within the context of our ecosystem of functional foods products. By rolling up a wide range of promising brands targeting different niches in the same broad category of the retail market, we will be able to dramatically improve the profit potential of each product line through synergies in marketing, distribution, packaging, shipping, and sourcing. American Metabolix is a highly promising brand targeting the rapidly growing keto marketplace, and we are very excited to welcome it into the GenTech family.”

 

Celsius Holdings, Inc. (NASDAQ:CELH) is another top performing name in the functional foods space. CELH engages in the development, marketing, sale, and distribution of calorie-burning beverages. 

The company offers flavors including grapefruit, cucumber lime, orange pomegranate, pineapple coconut, watermelon berry, and strawberries and cream. CELSIUS products have already achieved wide distribution, being sold nationally at Target, CVS, Walmart, GNC, Vitamin Shoppe, 7-Eleven, Dick’s Sporting Goods, The Fresh Market, Sprouts and other key regional retailers such as HEB, Publix, Winn-Dixie, Harris Teeter, Shaw’s and Food Lion.

Celsius Holdings, Inc. (NASDAQ:CELH) recently released its inaugural Environmental, Social and Governance (ESG) Report, highlighting its initiatives and best practices to drive a sustainable, equitable and prosperous impact for our various stakeholders.

“As part of our Board of Directors corporate-wide best practices initiatives, which includes the appointment of E&Y as our corporate auditor, restructuring our BOD and personnel, and the recent addition of Marcus Sandifer as corporate secretary, we are proud to share our inaugural ESG report highlighting the progress and key focus areas in our ESG initiatives, through the focus and investments we have undertaken to reduce our environmental footprint, advance diversity and inclusion and innovate across our business to drive an increasingly sustainable business model for the future,” said John Fieldly, president and chief executive officer of Celsius Holdings.

If you’re long this stock, then you’re liking how the stock has responded to the announcement. CELH shares have been moving higher over the past week overall, pushing about 15% to the upside on above average trading volume. Shares of the stock have powered higher over the past month, rallying roughly 16% in that time on strong overall action. 

Celsius Holdings, Inc. (NASDAQ:CELH) managed to rope in revenues totaling $65.1M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 116.6%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($83.8M against $54.3M).

 

In addition, other names of interest in the sports nutrition space include USANA Health Sciences, Inc. (NYSE:USNA), Herbalife Nutrition Ltd (NYSE:HLF), Simply Good Foods Co (NASDAQ:SMPL), MusclePharm Corp (OTCMKTS:MSLP), Glanbia plc (OTCMKTS:GLAPY), and WW International Inc (NASDAQ:WW).

Please make sure to read and completely understand our disclaimer at https://www.wallstreetpr.com/disclaimer. We may be compensated for posting this content on our website by EDM Media LLC. For questions, comments or suggestions please contact ir@edm.media.

Published by Benjamin Roussey

Benjamin Roussey is from Sacramento, California. He has two master’s degrees and served four years in the U.S. Navy. His bachelor’s degree is from CSUS (1999) where he was on a baseball pitching scholarship. His second master’s degree is an MBA in Global Management from the University of Phoenix (2006). He has worked for small businesses, public agencies, and large corporations. He has lived in Korea and Saudi Arabia where he was an ESL instructor. Benjamin spends his time in between Northern California and Cabo San Lucas, Mexico, committing himself to his craft of freelance and website writing. http://www.facebook.com/ben.rouss

Recent Stories

SignUp Now For Our Featured Newsletter