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Nov 30, 2024
Simply Good Foods Q1 2025 Earnings Report
Reported financial results for Q1 2025 and reaffirmed fiscal year 2025 outlook.
Key Takeaways
Simply Good Foods reported a net sales increase of 10.6% to $341.3 million, driven primarily by the OWYN acquisition. The company's gross margin improved, leading to Adjusted EBITDA growth of 13.1%. They reaffirmed their fiscal year 2025 outlook, expecting continued growth.
Net sales increased to $341.3 million, up from $308.7 million.
Net income rose to $38.1 million compared to $35.6 million.
Earnings per diluted share increased to $0.38 from $0.35.
Adjusted EBITDA grew to $70.1 million, compared to $62.0 million.
Simply Good Foods
Simply Good Foods
Simply Good Foods Revenue by Segment
Revenue by Segment
OWYN Revenue
CapyFin.com Forward Guidance
The Company reaffirms its fiscal year 2025 outlook due to solid retail takeaway, visibility into second quarter orders and strong Adjusted EBITDA growth.
Positive Outlook
- Net Sales expected to increase 8.5% to 10.5%
- OWYN fiscal year 2025 Net Sales expected to be in the $135-145 million range
- Adjusted EBITDA expected to increase 4% to 6%
- Strong advertising and marketing plans in place
- Innovation, merchandising and promotions that should enable it to achieve its objectives
Challenges Ahead
- The fifty-third week in fiscal year 2024 comparison year is about a 2-percentage point headwind to both Net Sales and Adjusted EBITDA growth in fiscal year 2025
- Company expects input cost inflation in fiscal year 2025
- Higher employee-related costs
- Corporate expenses
- One-time costs related to the OWYN acquisition