Please ensure Javascript is enabled for purposes of website accessibility

A LaCroix Rebound Lifts National Beverage’s Earnings Results

By Demitri Kalogeropoulos - Mar 6, 2020 at 1:35PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The sparkling water franchise is growing again.

National Beverage (FIZZ -6.93%), the company behind the LaCroix sparkling water brand, announced earnings results on Thursday that included some encouraging news for investors.

A woman holding a glass of sparkling water with lemon.

Image source: Getty Images.

What happened?

Sales rose by 1% and profitability ticked higher thanks to a rebound in demand for its LaCroix brand. Revenue gains benefited from a 2% increase in sales volumes to mark a significant improvement from the 11% decline National Beverage reported three months ago.

In a press release, the company credited its sparkling water brand for showing encouraging progress after slumping in the wake of bad publicity and a surge in competition. "LaCroix has returned to positive growth," executives said, "in a much different sparkling water category than existed prior to October 2018, when litigation slowed the growth of LaCroix."

What's ahead?

National Beverage still has some work ahead in its rebound initiative. Sales are down over the last nine months, after all, and profitability is significantly lower than it was before the LaCroix franchise began slowing its expansion rate in late 2018. Management is hoping that new flavor launches, including two that are now being sent to retailers around the country, will help it achieve that rebound and once again challenge the major soda giants.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

National Beverage Corp. Stock Quote
National Beverage Corp.
$45.12 (-6.93%) $-3.36

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/20/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.