Simply Good Foods Q2 Profit Rises, Tops Estimates; Cuts FY24 Sales Growth View

(RTTNews) - Simply Good Foods Co. (SMPL) reported Thursday higher second-quarter profit and sales. Further, the maker of branded nutritional foods and snacking products updated fiscal 2024 forecast citing lower than anticipated Atkins consumption in the second quarter.

In the second quarter, net income grew to $33.1 million from last year's $25.6 million. Earnings per share were $0.33, higher than prior year's $0.25.

Adjusted earnings per share were $0.40, compared to $0.32 in the year ago period. Analysts on average expected the company to report earnings of $0.38 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Adjusted EBITDA, a key earnings metric, grew to $57.8 million from $50.9 million last year.

Net sales increased 5.3 percent to $312.2 million from $296.6 million in the prior year, while analysts expected sales of $316.88 million. As expected, sales performance was driven by Quest volume.

North America and International net sales increased 5.1 percent and 12.2 percent, respectively, versus last year.

Looking ahead for fiscal 2024, the company now expects net sales to increase around the mid-point of its long-term algorithm of 4-6 percent, including the benefit of a fifty-third week. The Company previously expected net sales to increase at the high-end of its long-term algorithm.

Adjusted EBITDA for the year is now anticipated to increase 6-8 percent driven by solid gross margin expansion.

The company continues to expect full year fiscal 2024 net sales growth to be driven by volume.

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