The Simply Good Foods Company reports fiscal Q1 2024 financial results
The company is striving to accelerate its Quest brand and revitalize the Atkins brand.
The Simply Good Foods Company, parent company of Quest and Atkins brands, has reported financial results for the thirteen weeks ended November 25, 2023.
First quarter summary:
- Net sales of $308.7 million versus $300.9 million
- Net income of $35.6 million versus $35.9 million
- Earnings per diluted share (“EPS”) of $0.35 versus $0.36
- Adjusted Diluted EPS(2) of $0.43 versus $0.42
- Adjusted EBITDA(4) $62.0 million versus $60.8 million
- Reaffirm fiscal year 2024 Net Sales and Adjusted EBITDA(3) outlook(4): Net sales expected to increase at the high end of the Company’s long-term algorithm of 4-6%, including the benefit of a fifty- third week
*Adjusted EBITDA(3) anticipated to increase slightly greater than the net sales growth rate
"We are pleased with our fiscal first quarter financial results and marketplace performance that were in line with estimates," said Geoff Tanner, president and chief executive officer of Simply Good Foods. "Simply Good Foods retail takeaway in the first quarter of fiscal 2024, in the combined measured and unmeasured channels, was solid and increased slightly more than 8% driven by volume growth. As expected, retail takeaway outpaced net sales growth of 2.6% due primarily to timing of shipments versus the year ago period related to "New Year, New You" in-store programming."
"Our first quarter marketplace results are a positive start to the year and, while early, the second quarter is off to a good start. Additionally, we have strong marketing and merchandising plans in place for 'New Year, New You" season which started this week and will run through the second quarter of fiscal 2024. We're pleased with the progress we've made on the acceleration plans for Quest and the revitalization plan for Atkins. We are confident in our strategy and execution and we believe we are positioned to drive sustained profitable growth," he said.
"As such, we reaffirm our full year fiscal 2024 outlook and expect net sales growth, driven by volume, to be at the high end of our 4-6% long-term algorithm, including the benefit of a fifty-third week. We continue to anticipate solid gross margin expansion during the year and meaningful investments in marketing and growth initiatives, as well as organizational capabilities. As a result, Adjusted EBITDA is expected to increase slightly higher than the net sales growth rate. We're excited about our prospects and thankful for the efforts of our passionate employees who continue to drive the business forward."
Read the full results here.
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