The Simply Good Foods Company · NASDAQ:SMPL
The Simply Good Foods — Q3 2023 Earnings Presentation
18 slides from The Simply Good Foods's earnings presentation, Jun 29, 2023
Slide 1: Third Quarter Fiscal Year 2023 Earnings Conference Call & Webcast Presentation
Third Quarter Fiscal Year 2023 Earnings Conference Call & Webcast Presentation June 29, 2023
Slide 2: Disclaimer: Forward Looking Statements
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, CEO ▪ Business Overview Geoff Tanner, President, ▪ Quest and Atkins Update COO and CEO Elect ▪ Initial Observations Shaun Mara, CFO ▪ Financial Summary ▪ Fiscal Year 2023 Outlook ▪ Q&A 3
Slide 5: Third Quarter Fiscal 2023 Business Overview
Third Quarter Fiscal 2023 Business Overview ▪ Q3 retail takeaway and financial performance greater than forecast 1 - POS growth of 11% resulted in higher net sales growth versus our estimate - Q3 retail takeaway, as expected, outpaced net sales growth due to the prior year retail customer inventory
Slide 6: Geoff Tanner, President, Chief Operating Officer and CEO Elect
GEOFF TANNER PRESIDENT, CHIEF OPERATING OFFICER AND CEO ELECT 5
Slide 7: Simply Good Foods Year-to-Date Retail Takeaway Performance
Simply Good Foods Year-to-Date Retail Takeaway Performance ▪ Fiscal F3Q23 year-to-date Simply Good Foods IRI MULO + C-store retail takeaway increased +11.6% and about +13% in the combined measured and unmeasured channels ▪ Atkins and Quest marketplace performance solid within the sub-segments of wei
Slide 8: Quest Overview
Quest® Overview ▪ Increasing buy rate and household penetration continues to play a large role in Quest’s growth 1 ▪ Quest Q3 POS growth about 24% in combined measured and unmeasured channels and continues to out pace the nutritional snacking category 2 - IRI MULO + C-store retail takeaway increased
Slide 9: Atkins Overview
Atkins® Overview 1 ▪ Atkins Q3 POS growth in combined measured and unmeasured channels down about 2% - Solid retail takeaway at Amazon, up 16%, offset by softness in measured channels 2 ▪ Atkins Q3 IRI MULO + C-store retail takeaway declined 3.4% - Softness primarily due to incremental programming i
Slide 10: Geoff Tanner – Initial Observations
Geoff Tanner – Initial Observations Nutritional Snacking Focus on Driving Top Tier Growth Fuel Margin and Brand Simply Good Foods, a Category Leadership Quest Atkins Reinvestment Platform for Growth Maintain Quest’s Near term, shore up Gross margin recovery Solid margin and asset Partner with key mo
Slide 11: Shaun Mara, Chief Financial Officer
SHAUN MARA CHIEF FINANCIAL OFFICER 10
Slide 12: Net Sales Growth
Net Sales Growth ▪ F3Q23 Net Sales $324.8 million, an increase of 2.6% versus the year ago period Net Sales Drivers of Growth 1 Reconciliation of N. America Retail Takeaway to Net Sales Growth 2 1Does not sum down due to rounding 2Company estimates 11
Slide 13: 3rd Quarter Profit
3rd Quarter Profit Fiscal Q3 2023 vs. Year Ago Period Gross Profit Adjusted EBITDA (and % Margin)1 Net Income1 (and % Margin)1,2 +0.5% Year-Over-Year -8.8% Year-Over-Year +5.3% Year-Over-Year Percent Change Percent Change Percent Change $118.6 $119.2 37.5% 36.7% $66.6 $63.3 20.5% 41.4% 36.9% 20.0% $
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 May 27, 2023 of $68.8 million - Year-to-date F3Q23 cash flow from operations of $110.4 million 1 ▪ Term loan debt balance at May 27, 2023, $325 million (SOFR + 250 bps) - Term Loan B debt pay-down of $40 million in F3Q23 2,3 - Trailing twelve-month Net Deb
Slide 16: Summary
Summary ▪ Third quarter results and retail takeaway performance slightly better than expected - Provides us with flexibility to invest in brand building initiatives in Q4 1 ▪ June retail takeaway increased about 11%; POS expected to moderate late in Q4 as we lap the July 2022 price increase ▪ Net sa
Slide 17: Fiscal 2023 Outlook and Commentary
Fiscal 2023 Outlook and Commentary ▪ A portfolio of brands uniquely aligned with consumer megatrends of wellness snacking, convenience and meal replacement ▪ Reaffirm Fiscal Year 2023 Outlook: 1 1 ▪ Excited about our prospects and ability to create shareholder value 16 1Dollars in millions
Slide 18: Q&A
Q&A Simply ¥Good FOODS COMPANY”
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