Business
The Simply Good Foods Company Reports Third Quarter Fiscal Year 2023 Financial Results and Reaffirms Full Fiscal Year 2023 Outlook
DENVER, June 29, 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, June 29, 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 thirty-nine weeks ended May 27, 2023. Third Quarter Summary:(1) Net sales of $324.8 million versus $316.5 millionNet income(2) of $35.4 million versus $38.8 millionEarnings per diluted share (“EPS”)(2) of $0.35 versus $0.38Adjusted Diluted EPS(3) of $0.44, the same as the year ago periodAdjusted EBITDA(4) of $66.6 million versus $63.3 million Reaffirm Full Year Fiscal 2023 Outlook: Net sales 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. “I’m pleased with our third-quarter financial and marketplace results that were greater than our expectations,” said Joseph E. Scalzo, Chief Executive Officer of Simply Good Foods. “U.S. retail takeaway in the third quarter of fiscal 2023, in the U.S. combined measured and unmeasured channels increased about 11%. As expected, retail takeaway growth outpaced the net sales change principally due to the customer inventory build last year. Total net sales in the third quarter of fiscal 2023 increased 2.6%. Gross margin of 36.7% exceeded our forecast and sequentially improved versus the second quarter gross margin of 34.6%. The better than expected gross margin was primarily due to input cost moderation compared to our estimate. Higher net sales and gross margin versus our forecast, as well as good cost control, resulted in Adjusted EBITDA greater than our outlook giving us flexibility to invest in brand building initiatives in the fourth quarter,” Scalzo concluded. “As we enter the fourth quarter we are on track to deliver on our full-year objectives while also positioning the Company for success in fiscal 2024,” said Geoff E. Tanner, President, Chief Operating Officer and CEO Elect. “We reaffirm our previous full fiscal year 2023 outlook and anticipate net sales will increase slightly greater than our 4-6% long-term algorithm and that Adjusted EBITDA will increase slightly less than the net sales growth rate. Additiona...