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Nov 28, 2020
Simply Good Foods Q1 2021 Earnings Report
Reported fiscal first quarter 2021 financial results and updated fiscal first half of year 2021 outlook.
Key Takeaways
Simply Good Foods reported a strong fiscal first quarter, exceeding expectations despite COVID-19 challenges. Net sales increased by 51.9%, driven by the Quest acquisition, and net income rose to $22.5 million. The company updated its outlook for the first half of fiscal 2021, anticipating net sales of $455-465 million and Adjusted EBITDA of $85-90 million.
Net sales increased 51.9% driven by the Quest acquisition.
Net income was $22.5 million, compared to a net loss of $4.8 million.
EPS was $0.23 versus $(0.05).
Adjusted EBITDA increased 53.2% to $48.7 million.
Simply Good Foods
Simply Good Foods
Simply Good Foods Revenue by Segment
Revenue by Segment
Atkins Revenue
CapyFin.comQuest Revenue
CapyFin.com Forward Guidance
The Company updated its outlook for the first half of fiscal 2021. Assuming U.S. consumer movement restrictions remain at the current levels, the Company anticipates net sales of $455-465 million and Adjusted EBITDA of $85-90 million.
Positive Outlook
- Net Sales expected to be in the $455-465 million range, greater than the previous estimate of $425-435 million
- Adjusted EBITDA expected to be in the $85-90 million, greater than the previous estimate of $77-82 million
- Company reaffirms its expectation that full year gross margin will be about the same as fiscal 2020
- Adjusted EBITDA margin will increase
- Company is positioned for long-term sustainable net sales and earnings growth
Challenges Ahead
- Uncertainty related to the duration of reduced consumer mobility
- Uncertainty when shopping trips will return to pre-pandemic levels, particularly in the mass market retail channel
- Difficult to provide a full-year fiscal 2021 outlook at this time
- Divestiture of SimplyProtein is about a 2% headwind to both the first half and full year fiscal 2021 net sales growth
- Exit of Europe is about a 2% headwind to both the first half and full year fiscal 2021 net sales growth
Revenue & Expenses
Visualization of income flow from segment revenue to net income