NATIONAL BEVERAGE CORP
AI Executive Summary
AI-powered analysis of 10-Q filing content
National Beverage's Q1 FY2027 results show flat net sales but a significant margin compression, with gross margin falling from 38.0% to 35.0% primarily due to a ~600bps negative impact from aluminum costs, driving net income down 15.7% year-over-year. The balance sheet reflects a massive cash and retained earnings reduction following a $304.2 million special dividend, leaving cash reserves down from $349.5M to $107.1M. Underlying volume trends are concerning, with case volume declining 6.4% offset only partially by a 7.1% price increase.
Red Flags Detected (6)
Gross margin declined 300 basis points (38.0% to 35.0%), with aluminum costs alone cutting ~600bps
Case volume down 6.4% year-over-year, indicating potential demand softness across both Power+ Brands and CSD segments
Cost of sales per case rose 12.4%, outpacing the 7.1% price increase per case
3 more red flags detected
Key Takeaways
Net sales essentially flat ($330.7M vs $330.5M) but composition shifted unfavorably: higher price, lower volume
Gross profit declined $9.7 million (7.7%) year-over-year driven by input cost inflation
3 more takeaways
Filing Overview
What This Means
Deteriorating Trend: Conditions are worsening compared to previous filings. This may create opportunities for service providers.
Quarterly Report: Interim filing with unaudited financial data for the quarter.