Business
The Simply Good Foods Company Reports Fiscal Second Quarter 2024 Financial Results and Updates Full Fiscal Year 2024 Net Sales and Adjusted EBITDA Outlook
DENVER, April 04, 2024 (GLOBE NEWSWIRE) -- The Simply Good Foods Company (Nasdaq: SMPL) (“Simply Good Foods,” or the “Company”), a developer, marketer and
About this update from The Simply Good Foods Company
[{"type":"text","content":"DENVER, April 04, 2024 (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 weeks ended February 24, 2024. Second Quarter Summary:(1) Net sales of $312.2 million versus $296.6 millionNet income of $33.1 million versus $25.6 millionEarnings per diluted share (“EPS”) of $0.33 versus $0.25Adjusted Diluted EPS(2) of $0.40 versus $0.32Adjusted EBITDA(4) $57.8 million versus $50.9 million Full fiscal year 2024 Net Sales and Adjusted EBITDA(3) outlook(4): Net sales expected to increase around the mid-point of the Company’s long-term algorithm of 4-6%, including the benefit of a fifty-third week. The Company previously expected Net Sales to increase at the high-end of its long-term algorithm.Adjusted EBITDA(3) now anticipated to increase 6-8% driven by solid gross margin expansion. \"Simply Good Foods second quarter results were led by continued Quest growth, as well as strong gross margin performance,\" said Geoff Tanner, President, and Chief Executive Officer of Simply Good Foods. \"Second quarter net sales increased 5.3% driven by volume and, due to the timing of shipments last quarter, outpaced retail takeaway(5) of about 3%. I am very pleased with our gross margin improvement in the quarter, a 280 basis points increase versus last year, which enabled investments in our business and strong Adjusted EBITDA growth.\" \"In the second quarter, Quest retail takeaway was on track with our plans, driven by strong salty snacks growth, while Atkins performance was off versus our estimates. As the \"New Year, New You\" season began there was a meaningful increase in competitive activity in the form of in-store merchandising and programming. The increase in competitive activity impacted the merchandising effectiveness of Atkins and other brands within the nutritional snacking category. We remain confident in the long-term potential of both of our brands. Quest has a long runway of growth that will continue to be driven by advertising, innovation and distribution gains which should result in higher household penetration and increased buy rate. Work is progressing on the Atkins revitalization plan and, as previously discussed, all elements of the plan should be...