DAVY VIEW

The recent IPO of BellRing Brands expands the universe of listed sports nutrition peers and showcases the success of a brand-focused model aligned to structurally growing formats and channels. Its model is anchored by its core Premier Protein RTD SKU (80% of sales), with channel mix tilted to Club (63% of sales). A concentrated format and channel model has not encumbered its equity. Reflecting healthy growth and attractive profit margins (EBITDA margin c.23%), BellRing garners a sector premium valuation, with the stock trading on 17.9x FY 2020 EBITDA. Glanbia currently trades on 9.6x EV/EBITDA.