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Feb 29, 2020
Simply Good Foods Q2 2020 Earnings Report
Simply Good Foods' second quarter results exceeded expectations, driven by strong performance from both legacy Atkins and Quest brands
Key Takeaways
The Simply Good Foods Company reported strong fiscal second quarter 2020 financial results, with net sales increasing by 83.4% to $227.1 million. The company's performance was driven by both legacy Atkins and Quest brands. However, due to COVID-19, the company withdrew its fiscal 2020 full year guidance.
Net sales increased 83.4% to $227.1 million.
Legacy Atkins net sales increased 12.1%.
Quest acquisition contributed 71.3% to net sales growth.
Adjusted Diluted EPS was $0.23 versus $0.18.
Simply Good Foods
Simply Good Foods
Forward Guidance
Due to the uncertainty related to potential effects of the COVID-19 outbreak, the company withdrew its previously communicated fiscal 2020 outlook.
Positive Outlook
- The company entered the second half of the fiscal year with positive net sales momentum.
- Solid cost containment.
- Confidence in ability to execute plans to deliver on financial objectives.
- Quest integration is on-track.
- Synergy plans are proceeding as expected.
Challenges Ahead
- Volatile retail foot traffic in March impacted retail takeaway.
- Retail takeaway of products was very strong in the first half of March but followed by a notable slowdown.
- Unpredictable nature of current consumer purchasing behavior.
- Severity and duration of the COVID-19 pandemic is uncertain.
- COVID-19 pandemic will likely continue during the second half of fiscal year.