The Simply Good Foods Company · NASDAQ:SMPL
The Simply Good Foods — FY2023 Earnings Presentation
21 slides from The Simply Good Foods's earnings presentation, Oct 24, 2023
Slide 1: Fourth Quarter and Full Fiscal Year 2023 Earnings Conference Call & Webcast Presentation
Fourth Quarter and Full Fiscal Year 2023 Earnings Conference Call & Webcast Presentation October 24, 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: Geoff Tanner, President and Chief Executive Officer
GEOFF TANNER PRESIDENT AND CHIEF EXECUTIVE OFFICER 2
Slide 4: Today's Speakers and Agenda
Today’s Speakers and Agenda Speakers Agenda \ Mark Pogharian ▪ Introduction VP, Investor Relations Geoff Tanner, President & CEO ▪ Business Overview ▪ Quest and Atkins Update Shaun Mara, CFO ▪ Financial Summary ▪ Fiscal Year 2024 Outlook ▪ Q&A 3
Slide 5: Key Messages
Key Messages ▪ Delivered strong Q4 Net Sales growth of about 17% - As expected, Net Sales outpaced retail takeaway due to the retail customer inventory draw down in the year ago period - Gross margin expansion slightly greater than expectations ▪ Full year fiscal 2023 organic Net Sales increased abo
Slide 6: Simply Good Foods Full Year Retail Takeaway Performance
Simply Good Foods Full Year Retail Takeaway Performance ▪ Unmeasured channels continue to be additive to total Simply Good Foods IRI MULO + C-store marketplace performance FY23 Measured Channels 1 FY23 Measured + Unmeasured Channels 2 Retail Takeaway % Change vs. Year Ago Retail Takeaway % Change vs
Slide 7: Quest Overview
Quest® Overview ▪ Strong Quest marketplace performance throughout the year 1 - Retail takeaway growth of 24% in both Q4 and FY23 in combined measured and unmeasured channels - A diversified brand with balanced growth across channels and product forms; strong household penetration and distribution ga
Slide 8: Atkins Overview
Atkins® Overview 1 ▪ Atkins Q4 retail takeaway in the combined measured and unmeasured channels off 4%. ▪ Retail takeaway in Q4 at Amazon up 12%; performance driven by bars and shakes that increased about 11% and 16% 2 ▪ Atkins Q4 IRI MULO + C-Store retail takeaway declined 5.6% - Positive shakes PO
Slide 9: Atkins Consumer Research & Analysis
Atkins Consumer Research & Analysis ▪ Consumer research and analysis reaffirmed our belief of the high potential of the Atkins brand: - About 80% of consumers expressed their desire to lose weight or maintain a healthy eating lifestyle; – Atkins is a trusted leader of the low carb, low sugar approac
Slide 10: 5 Point Atkins Revitalization Plan
5 Point Atkins Revitalization Plan ▪ Revitalization plan focus areas: Innovation Executional Brand Perception / Gaps Missteps at Retail Experience 1 Accelerate near term bar 3 Optimize assortment and 4 New advertising on air innovation and build a robust price points mid-October with multi-year pipe
Slide 11: Innovation and Retail Customer Opportunities
Innovation and Retail Customer Opportunities Innovation Customer Execution Club & Ecommerce 10
Slide 12: New Advertising and Marketing Campaign
New Advertising and Marketing Campaign ▪ New advertising campaign launched in mid-October - Addresses feedback from consumer research which indicated that some potential new buyers are unaware, or skeptical, of the brand benefits and how delicious the products taste - New “Who Knew” campaign gives v
Slide 13: Summary
Summary ▪ Delivered solid fiscal 2023 results in a challenging operating environment ▪ Simply Good Foods is uniquely positioned as the U.S. leader in nutritional snacking - Atkins® and Quest® are scale brands that are highly relevant and well developed across multiple forms - Low category household
Slide 14: Shaun Mara, Chief Financial Officer
SHAUN MARA CHIEF FINANCIAL OFFICER 13
Slide 15: Net Sales Growth
Net Sales Growth ▪ Fourth quarter and full year Net Sales $320.4 million and $1.24 billion, an increase of 16.9% and 6.3% versus the year ago period Net Sales Drivers of Growth 1 Reconciliation of N. America Retail Takeaway to Net Sales Growth 2 3 1Europe exit only impacts fiscal 2022 2Company estim
Slide 16: 4th Quarter Profit
4th Quarter Profit Fiscal Q4 2023 vs. Year Ago Period 1 1, 2 Gross Profit Adjusted EBITDA (and % Margin) (and % Margin) Net Income 1 +18.3% Year-Over- +32.0% Year-Over-Year +21.6% Year-Over-Year Year Percent Change Percent Change Percent Change $120.5 37.6% $101.8 37.1% $67.3 21.0% 41.4% 36.9% $51.0
Slide 17: Full Year Fiscal 2023 Profit
Full Year Fiscal 2023 Profit Full Year Fiscal 2023 vs. Year Ago Period 1 Gross Profit Adjusted EBITDA 1,2 (and % Margin) (and % Margin) Net Income 1 +1.8% Year-Over-Year Percent Change +4.9% Year-Over-Year +23.0% Year-Over-Year Percent Change Percent Change $453.4 36.5% $445.6 38.1% $245.6 19.8% 41.
Slide 18: 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 19: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow ▪ Fiscal fourth quarter and full year cash flow from operations of about $61 and $171 million, respectively - Cash and cash equivalents balance at August 26, 2023 $87.7 million ▪ In fiscal 2023, term loan debt pay-down was $121.5 million - Term loan debt balance at August 2
Slide 20: Fiscal 2024 Outlook
Fiscal 2024 Outlook ▪ In a challenging macro-economic environment, Nutritional Snacking Category growth continues to be strong ▪ Expect lower ingredient and packaging costs to drive solid gross margin expansion - Provides the Company with flexibility to invest in capabilities and marketing initiativ
Slide 21: Q&A
Q&A Simply ¥Good FOODS COMPANY”
The Simply Good Foods Company — FY2023 Earnings Presentation on 6ix