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Feb 26, 2022
Simply Good Foods Q2 2022 Earnings Report
Reported strong sales and earnings growth in the second quarter of fiscal year 2022.
Key Takeaways
The Simply Good Foods Company reported a strong second quarter with net sales increasing by 28.7% and adjusted EBITDA increasing by 27.1%. The company is also updating its full fiscal year 2022 outlook, expecting net sales to increase 13-15% and adjusted EBITDA to increase slightly less than the net sales growth rate.
Net sales increased 28.7%.
Net income of $18.5 million compared to a net loss of $26.2 million.
Adjusted Diluted EPS of $0.36 versus $0.25.
Adjusted EBITDA increased 27.1% to $54.2 million.
Simply Good Foods
Simply Good Foods
Forward Guidance
The Company expects that it will generate solid net sales and Adjusted EBITDA growth in fiscal 2022. The Company's outlook does not assume any meaningful improvements in workplace mobility or significant supply chain interruption and anticipates the following in fiscal 2022:
Positive Outlook
- Net sales to increase 13-15% versus last year. Included in the sales outlook is about a 2 percentage point headwind due to the European business exit and the licensing of the Quest frozen pizza business in March. The Company's previous outlook was for net sales growth of 12-14% and a 1 percentage point headwind related to the European business exit;
- The Company reaffirms its gross margin outlook of about 250 basis points decline versus last year;
- Full-year fiscal 2022 Adjusted EBITDA to increase slightly less than the net sales growth rate;
- Full-year fiscal 2022 Adjusted Diluted EPS to increase greater than the Adjusted EBITDA growth rate.