Loading...
•
Nov 26, 2022
Simply Good Foods Q1 2023 Earnings Report
Simply Good Foods reported first quarter 2023 financial results with net sales increase and reaffirmed full fiscal year 2023 net sales and Adjusted EBITDA outlook.
Key Takeaways
Simply Good Foods reported a 7.0% increase in net sales to $300.9 million for the first quarter of fiscal year 2023. Net income increased to $35.9 million, with EPS at $0.36. The company reaffirmed its full fiscal year 2023 net sales and Adjusted EBITDA outlook, expecting net sales to increase slightly greater than the 4-6% long-term algorithm and Adjusted EBITDA to increase in line with net sales growth rate.
Net sales increased 7.0% compared to the year-ago period.
Net income was $35.9 million, up from $21.2 million in the previous year.
Earnings per diluted share (EPS) increased to $0.36 from $0.22.
The company reaffirmed fiscal year 2023 net sales and Adjusted EBITDA outlook.
Simply Good Foods
Simply Good Foods
Simply Good Foods Revenue by Geographic Location
Revenue by Geographic Location
International Revenue
CapyFin.com Forward Guidance
The Company anticipates the following in fiscal 2023: Net sales to increase slightly greater than the 4-6% long-term algorithm; Gross margin will decline versus last year, although at a lower rate than fiscal 2022; Full-year fiscal 2023 Adjusted EBITDA to increase in line with the net sales growth rate; and, Adjusted Diluted EPS to increase less than the Adjusted EBITDA growth rate due to the Company’s expectation of higher interest expense from an increase in the variable interest rate related to its term loan debt, partially mitigated by fewer shares outstanding.
Positive Outlook
- Net sales to increase slightly greater than the 4-6% long-term algorithm.
- Gross margin will decline versus last year, although at a lower rate than fiscal 2022.
- Full-year fiscal 2023 Adjusted EBITDA to increase in line with the net sales growth rate.
- The Company has made significant marketing and organizational investments in its business over the past few years, which it believes should continue to result in the growth of its consumer base, distribution and market share gains.
Challenges Ahead
- Adjusted Diluted EPS to increase less than the Adjusted EBITDA growth rate due to the Company’s expectation of higher interest expense from an increase in the variable interest rate related to its term loan debt, partially mitigated by fewer shares outstanding.
- Gross margin will decline versus last year
- Supply chain costs to be higher than last year.
- Headwind of almost 1 percentage point related to the previously discussed agreement to license the Quest frozen pizza business