The Simply Good Foods Company · NASDAQ:SMPL
The Simply Good Foods — Q2 2019 Earnings Presentation
18 slides from The Simply Good Foods's earnings presentation, Apr 4, 2019
Slide 1: Second Quarter Fiscal Year 2019 Earnings Conference Call & Webcast Presentation
Second Quarter Fiscal Year 2019 Earnings Conference Call & Webcast Presentation April 4, 2019
Slide 2: Disclaimer
Disclaimer Forward Looking Statements This presentation contains certain statements made herein that 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
Slide 3: Today's Speakers and Agenda
TODAY’S SPEAKERS AND AGENDA Speakers Agenda \ Mark Pogharian Introduction VP, Investor Relations Joe Scalzo Second Quarter 2019 Highlights Chief Executive Officer Business Update Todd Cunfer Financial Summary Chief Financial Officer Q&A 2
Slide 4: Joseph E. Scalzo
JOSEPH E. SCALZO PRESIDENT AND CHIEF EXECUTIVE OFFICER 3
Slide 5: 2nd Quarter Fiscal 2019 Highlights
2nd QUARTER FISCAL 2019 HIGHLIGHTS Delivered solid financial results, exceeded our expectation Marketplace performance continued to be strong Broad based growth across all forms (Bars, RTD/Shakes, Confections) and retail channels Reduced frequency of promotions on bar products resulted in ne
Slide 6: 2nd Quarter Highlights: Revenue & Profit Growth
2nd QUARTER HIGHLIGHTS: REVENUE & PROFIT GROWTH Business Momentum Continues $123.8 Driven by: $109.3 U.S. Volume +12.2% Trade Promo + 3.5% Non-price Related Trade - 2.5%2 Driven by: + Higher Sales + Gross Margin expansion driven primarily by favorable trade promotion - Partially offset by higher: ●
Slide 7: Consumption Growth Remains Strong
CONSUMPTION GROWTH REMAINS STRONG Total Atkins U.S. Snacking Point of Sale Data % Change vs. Year Ago +23.1% +22.1% +18.6% Period end 2/24/19: 52-weeks 26-weeks 13-weeks 6 Note: Bars/graphs not to scale
Slide 8: Base Velocity Growth
BASE VELOCITY GROWTH Atkins U.S. Snacking Point of Sale Drivers of Growth +22.1% 2Q18 Base Distribution Promotions 2Q19 Velocity Source: IRI/MULO; 13-weeks ended 2/24/19 7 Note: Bars/graphs not to scale
Slide 9: Retail Takeaway by Form
RETAIL TAKEAWAY BY FORM Growth across all forms relatively in-line with estimates: - Solid performance across all forms as marketing strategy focuses on communicating nutritional benefits of the Atkins brand - Bars performance impacted by strategic choice of reduced frequency of promotions versus th
Slide 10: New Ad Copy on Air January 2019
NEW AD COPY ON AIR JANUARY 2019 New ad copy tested well, early marketplace results encouraging Advertising investments driving new buyers to the brand Driving New Buyers and Consumption in F1Q19 & F2Q19 # (mil) Buy Rate Loyalty Total Buyers 9
Slide 11: Solid Pipeline of New Products
SOLID PIPELINE OF NEW PRODUCTS Annual new product launches provide variety to current consumers and helps introduce the brand and nutritional philosophy to new buyers - Distribution of fiscal 2019 innovation building as planned 10
Slide 12: First Half of Fiscal 2019 Off to a Solid Start
FIRST HALF OF FISCAL 2019 OFF TO A SOLID START A solid start to the year with net sales growth exceeding our long-term target, although challenging comps over the remainder of the year Total Atkins U.S. Snacking Point of Sale Data* Q1 Q2 Q3 Q4 March off 2019 +23.5% +22.1% to a good start TBD 2018
Slide 13: Financial Overview - Todd Cunfer
FINANCIAL OVERVIEW TODD CUNFER CHIEF FINANCIAL OFFICER 12
Slide 14: 2Q19 - Solid Sales Growth & Margin Expansion
2Q19 - SOLID SALES GROWTH & MARGIN EXPANSION Fiscal 2nd Quarter 2019 vs. Year Ago Period Gross Profit Adjusted EBITDA Net Sales(1) (and % Margin)(1) (and % Margin)(1) 13.2% Year-Over-Year 14.7% Year-Over-Year 22.1% Year-Over-Year Growth Growth Growth $123.8 $57.6 $23.0 $109.3 $50.3 $18.8 46.0% 46.6%
Slide 15: YTD 2019 Results Strong Across Key Metrics
YTD 2019 RESULTS STRONG ACROSS KEY METRICS Gross Profit Adjusted EBITDA Net Sales(1) (and % Margin)(1) (and % Margin)(1) 13.3% Year-Over-Year 13.3% Year-Over-Year 16.8% Year-Over-Year Growth Growth Growth $244.7 $116.7 $49.7 $103.0 $42.5 $215.9 47.7% 47.7% 19.7% 20.3% 1H18 1H19 1H18 1H19 1H18 1H19 (
Slide 16: Balance Sheet & Cash Flow Highlights
BALANCE SHEET & CASH FLOW HIGHLIGHTS Solid balance sheet and cash flow provides financial flexibility to support future growth; both organic and M&A Year-to-date cash generated by operating activities $21.8 million and net cash provided by financing activities $86.2 million As of February 23,
Slide 17: Summary
SUMMARY Strong first half of the year and entering Q3 with momentum and improved supply chain position Full Year 2019 Outlook Updated: Given year-to-date marketplace and financial results we’re more optimistic than last quarter in our ability to exceed our long-term net sales target of 4% to 6
Slide 18: Q&A
Q&A SimplyyGood
The Simply Good Foods Company — Q2 2019 Earnings Presentation on 6ix