The Simply Good Foods Company · NASDAQ:SMPL
The Simply Good Foods — Q2 2022 Earnings Presentation
17 slides from The Simply Good Foods's earnings presentation, Apr 6, 2022
Slide 1: Second Quarter Fiscal Year 2022 Earnings Conference Call & Webcast Presentation
Second Quarter Fiscal Year 2022 Earnings Conference Call & Webcast Presentation April 6, 2022 0
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, President and Chief Executive Officer
JOSEPH E. SCALZO 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 Joe Scalzo ▪ Overview and Q2 Highlights President & Chief Executive Officer ▪ Business Update Todd Cunfer ▪ Financial Summary Chief Financial Officer Joe Scalzo ▪ Fiscal Year 2022 Outlook Update Presid
Slide 5: Second Quarter Fiscal 2022 Overview
Second Quarter Fiscal 2022 Overview ▪ Strong second quarter results and retail takeaway despite surge in COVID-19 cases related to the Omicron variant - Net price realization was about a high-single digit percentage point contribution to net sales growth ▪ Simply Good Foods Q2 net sales increased +2
Slide 6: Simply Good Foods and Nutritional Snacking Category Retail Performance
Simply Good Foods and Nutritional Snacking Category Retail Performance ▪ Simply Good Foods IRI MULO + C-store retail takeaway outpaced the nutritional snacking category ▪ Atkins and Quest continue to gain share in the respective segments of weight management and active nutrition ▪ Simply Good Foods
Slide 7: Atkins Overview
Atkins® Overview 1 ▪ Atkins Q2 IRI MULO + C-store retail takeaway increased 6.4%, with growth across all forms and in key retail channels ▪ Consumer interest in Atkins and total buyer growth remains strong - Retained and new buyers higher versus year ago - Buy rate lower than historical average due
Slide 8: Quest Overview
Quest® Overview 1 ▪ Quest Q2 measured channel retail takeaway increased 40.1%, outpacing the nutritional snacking category and the active nutrition segment - Growth driven by the increase of household penetration, stronger bar consumption and success of new product forms - While early, pleased with
Slide 9: Summary
Summary ▪ Second quarter results better than expected 1 ▪ Anticipate that retail takeaway will continue to be solid, although growth rate in 2H22 is more challenging due to difficult year-over-year comparisons: 1 ▪ Due to the timing of the retail customer inventory build in Q2, we expect retail take
Slide 10: Todd Cunfer, Chief Financial Officer
TODD CUNFER CHIEF FINANCIAL OFFICER 9
Slide 11: Net Sales Performance
Net Sales Performance Net Sales Growth by Geography Fiscal Q2 2022 vs. Year Ago Period 1 1Includes European business exit, a 1.5 ppt headwind to total Company net sales growth 10
Slide 12: 2nd Quarter Net Sales and Profit
2nd Quarter Net Sales and Profit Fiscal Q2 2022 vs. Year Ago Period Net Sales1 Gross Profit Adjusted EBITDA (and % Margin)1 (and % Margin)1,2 28.7% Year-Over-Year 20.2% Year-Over-Year 27.1% Year-Over-Year Growth Growth Growth $296.7 $230.6 $108.5 36.6% $90.3 $54.2 39.1% 18.3% $42.6 18.5% 2Q21 2Q22 2
Slide 13: Year-to-Date Net Sales and Profit
Year-to-Date Net Sales and Profit Fiscal YTD 2022 vs. Year Ago Period Net Sales1 Gross Profit Adjusted EBITDA (and % Margin)1 (and % Margin)1,2 25.2% Year-Over-Year 22.1% Year-Over-Year 31.2% Year-Over-Year Growth Growth Growth $578.0 $461.8 $225.1 38.9% $184.3 39.9% $119.8 20.7% $91.3 19.8% 2Q21 2Q
Slide 14: Adjusted Diluted Earnings Per Share
Adjusted Diluted Earnings Per Share Reconciliation of Adjusted Diluted EPS 1 2 3,4 3,4 1Other items consist principally of exchange impact of foreign currency transactions and other expenses. 2This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line
Slide 15: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow ▪ Fiscal second quarter cash flow from operations of $37.7 million, an increase of 53% versus the year ago period - Cash and cash equivalents balance at February 26, 2022 of $51.5 million 1 ▪ Term loan debt balance at February 26, 2022, $431.5 million (SOFR +325 bps) 2,3 -
Slide 16: Fiscal 2022 Outlook and Commentary
Fiscal 2022 Outlook and Commentary ▪ On track to deliver solid net sales and Adjusted EBITDA growth in fiscal 2022 - We do not expect any meaningful improvements in workplace mobility or major supply chain interruptions in our outlook - Both Atkins and Quest are strong brands with marketing and inno
Slide 17: Q&A
Q&A Simply ¥Good FOODS COMPANY”
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