Business
The Simply Good Foods Company Reports Second Quarter 2023 Financial Results and Updates Full Fiscal Year 2023 Outlook
DENVER, April 05, 2023 (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 05, 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 twenty-six weeks ended February 25, 2023. Second Quarter Summary:(1) Net sales of $296.6 million versus $296.7 millionNet income(2) of $25.6 million versus $18.5 millionEarnings per diluted share (“EPS”)(2) of $0.25 versus $0.18Adjusted Diluted EPS(3) of $0.32 versus $0.36Adjusted EBITDA(4) of $50.9 million versus $54.2 million Full Year Fiscal 2023 Outlook: Reaffirm full year net sales outlook that is expected to increase slightly greater than the Company's long-term algorithm of 4-6%, including a headwind of almost 1 percentage point related to the frozen pizza licensingAdjusted EBITDA(4,6) anticipated to increase, but slightly less than the net sales growth rate. The Company previously expected Adjusted EBITDA(4,6) to increase in line with the net sales growth rate “During the important “New Year, New You” season, Simply Good Foods retail takeaway in the second quarter of fiscal 2023, in the U.S. combined measured and unmeasured channels, was greater than expected and increased about 16%,” said Joseph E. Scalzo, Chief Executive Officer of Simply Goods Foods. “Marketplace performance was driven by strong retailer programming, new product success and marketing investments that continue to drive household penetration of our brands. As expected, retail takeaway growth outpaced the net sales change principally due to the significant prior year retail customer inventory build. Total Company net sales were about the same as the year ago period and slightly greater than our estimate. The gross margin decline in the second quarter was greater than expectations due to slightly higher costs throughout the supply chain. We exceeded our Adjusted EBITDA estimate due to better than expected sales performance and slightly favorable operating expenses.” “As we look to the remainder of the year we are off to a good start as March retail takeaway in the combined U.S. measured and unmeasured channels increased about 12%. We continue to anticipate that U.S. retail takeaway will moderate over the remainder of the year due to a more challenging comparable in the year ago period and a r...