Business
The Simply Good Foods Company Reports Fiscal Fourth Quarter and Full Fiscal Year 2023 Financial Results and Provides Full Fiscal Year 2024 Outlook
DENVER, Colo., Oct. 24, 2023 (GLOBE NEWSWIRE) -- The Simply Good Foods Company (Nasdaq: SMPL) (“Simply Good Foods,” or the “Company”), a developer, marketer
About this update from The Simply Good Foods Company
[{"type":"text","content":"DENVER, Colo., Oct. 24, 2023 (GLOBE NEWSWIRE) -- The Simply Good Foods Company (Nasdaq: SMPL) (“Simply Good Foods,” or the “Company”), a developer, marketer and seller of branded nutritional foods and snacking products, today reported financial results for the thirteen and fifty-two weeks ended August 26, 2023. Fourth Quarter Summary:(1) Net sales of $320.4 million versus $274.2 millionNet income of $36.6 million versus $30.1 millionEarnings per diluted share (“EPS”) of $0.36 versus $0.30Adjusted Diluted EPS(3) of $0.45 versus $0.36Adjusted EBITDA(4) $67.3 million versus $51.0 million Full Year Fiscal 2024 outlook: Net sales expected to increase at the high end of the Company’s long-term algorithm of 4-6%, including the benefit of a fifty- third weekAdjusted EBITDA(4,6) anticipated to increase slightly greater than the net sales growth rate \"Fiscal 2023 was another successful year for our Company with solid retail takeaway and net sales growth,” said Geoff Tanner, President and Chief Executive Officer of Simply Good Foods. “Despite supply chain issues in the first half of the year, our team remained focused and we ended the year strong. I want to thank our employees for their contributions and their continued efforts as we focus on delivering a successful fiscal year 2024.\" Fourth quarter fiscal 2023 net sales growth of about 17% was in line with estimates. As expected, due to the retail customer inventory draw down in the year ago period, fourth quarter net sales growth outpaced U.S. retail takeaway of 11%.(7) Gross margin of 37.6% was slightly greater than estimates and sequentially improved compared to 36.7% in the third quarter. The improvement in gross margin was primarily due to lower ingredient and packaging costs, which, combined with good G&A cost control, resulted in strong Adjusted EBITDA growth. In fiscal 2024, the Company expects net sales growth, driven by volume, to be at the high end of its 4-6% long-term algorithm, including the benefit of a fifty-third week. The Company anticipates solid gross margin expansion during the year and that it will make meaningful investments in marketing and growth initiatives, as well as organizational capabilities. As a result, for the full year fiscal 2024, Adjusted EBITDA is expected to increase slightly higher than the net sales growth rate. \"In my nearly seven-month tenure ...