The Simply Good Foods Company · NASDAQ:SMPL
The Simply Good Foods — Q2 2023 Earnings Presentation
17 slides from The Simply Good Foods's earnings presentation, Apr 5, 2023
Slide 1: Second Quarter Fiscal Year 2023 Earnings Conference Call & Webcast Presentation
Second Quarter Fiscal Year 2023 Earnings Conference Call & Webcast Presentation April 5, 2023
Slide 2: Disclaimer
Disclaimer Forward Looking Statements Certain statements made herein are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by or include w
Slide 3: Joseph E. Scalzo, Chief Executive Officer
JOSEPH E. SCALZO CHIEF EXECUTIVE OFFICER 2
Slide 4: Today's Speakers and Agenda
Today’s Speakers and Agenda Speakers Agenda \ Mark Pogharian ▪ Introduction VP, Investor Relations Joe Scalzo ▪ Overview and Q2 Highlights Chief Executive Officer ▪ Business Update Shaun Mara ▪ Financial Summary Chief Financial Officer Joe Scalzo ▪ Fiscal Year 2023 Outlook Chief Executive Officer ▪
Slide 5: Second Quarter Fiscal 2023 Overview
Second Quarter Fiscal 2023 Overview ▪ Pleased with overall Q2 financial performance; achieved our forecast due to stronger than expected POS growth - Simply Good Foods F2Q23 retail takeaway1of about 16% - As expected, U.S. retail takeaway growth outpaced the net sales change principally due to the s
Slide 6: Simply Good Foods Retail Takeaway Performance
Simply Good Foods Retail Takeaway Performance ▪ Fiscal 2Q23 Simply Good Foods IRI MULO + C-store retail takeaway increased +14.2% and about +16% in the combined measured and unmeasured channels - A good mix of pricing and unit volume growth ▪ Atkins and Quest marketplace performance solid within the
Slide 7: Atkins Overview
Atkins® Overview 1 ▪ Atkins Q2 POS growth in combined measured and unmeasured channels increased about 6% as strong e-commerce growth outperformed measured channels - Retail takeaway at Amazon increased about 35% versus last year - Total unmeasured channel retail takeaway increased slightly more tha
Slide 8: Quest Overview
Quest® Overview 1 ▪ Quest Q2 POS growth about 26% in combined measured and unmeasured channels and continues to out pace the nutritional snacking category - Retail takeaway at Amazon increased 30% versus last year - Unmeasured channels about 24% of total brand Q2 retail sales 2 ▪ Quest Q2 IRI MULO +
Slide 9: Summary
Summary ▪ Simply Good Foods is uniquely positioned as a U.S. leader in fast growing nutritional snacking category - Atkins® and Quest® are consumer lifestyle brands that are well developed across multiple forms - A diversified portfolio that satisfies snacking usage occasions at home, in the office,
Slide 10: Shaun Mara, Chief Financial Officer
SHAUN MARA CHIEF FINANCIAL OFFICER 9
Slide 11: Net Sales Growth
Net Sales Growth ▪ F2Q23 Net Sales $296.6 million, about the same as the year ago period ▪ Year-to-date Net Sales $597.5 million, an increase of 3.4% versus last year Net Sales Drivers of Growth 1 1 Reconciliation of Retail Takeaway to Net Sales Growth 2 1Does not sum down due to rounding 2Company e
Slide 12: 2nd Quarter Profit
2nd Quarter Profit Fiscal Q2 2023 vs. Year Ago Period Gross Profit Adjusted EBITDA (and % Margin)1 Net Income1 (and % Margin)1,2 -5.3% Year-Over-Year +38.9% Year-Over-Year -5.7% Year-Over-Year Percent Change Percent Change Percent Change $108.5 36.6% $102.7 34.6% $54.2 18.3% $50.9 41.4% 36.9% 17.2%
Slide 13: Year-to-Date Profit
Year-to-Date Profit Fiscal YTD 2023 vs. Year Ago Period Gross Profit Adjusted EBITDA (and % Margin)1 Net Income1 (and % Margin)1,2 -5.0% Year-Over-Year +55.3% Year-Over-Year -6.8% Year-Over-Year Percent Change Percent Change Percent Change $225.1 38.9% $213.7 35.8% $119.8 20.7% $111.7 41.4% 18.7% 36
Slide 14: Adjusted Diluted Earnings Per Share
Adjusted Diluted Earnings Per Share Reconciliation of Adjusted Diluted EPS 1 1This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line items of the table. The tax effect of each adjustment is computed (i) by dividing the gross amount of the adjustme
Slide 15: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow ▪ Cash balance at February 25, 2023 of $63.2 million - Year-to-date cash flow from operations on F2Q23 of $53.3 million 1 ▪ Term loan debt balance at February 25, 2023, $365 million (SOFR + 325 bps) - Term loan debt pay-down of $35 million in F2Q23 2,3 - Trailing twelve-mon
Slide 16: Fiscal 2023 Outlook and Commentary
Fiscal 2023 Outlook and Commentary ▪ Full Fiscal Year 2023 Outlook versus 2022: 1 ▪ We have good marketplace momentum – March POS 12% - and have solid customer programming in place over the remainder of the year ▪ Expect Q3 net sales to slightly increase versus last year due to the typical retail in
Slide 17: Q&A
Q&A Simply ¥Good FOODS COMPANY”
The Simply Good Foods Company — Q2 2023 Earnings Presentation on 6ix