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May 27, 2023
Simply Good Foods Q3 2023 Earnings Report
Reported financial results for Q3 2023 and reaffirmed full fiscal year 2023 outlook.
Key Takeaways
Simply Good Foods reported a 2.6% increase in net sales to $324.8 million, with net income at $35.4 million and EPS at $0.35. Adjusted EBITDA increased to $66.6 million. The company reaffirms its full-year fiscal 2023 outlook, expecting net sales to increase slightly greater than the 4-6% long-term algorithm.
Net sales increased by 2.6% to $324.8 million.
Net income was $35.4 million, with EPS at $0.35.
Adjusted EBITDA increased to $66.6 million.
Full-year fiscal 2023 outlook reaffirmed, with net sales expected to increase slightly greater than the 4-6% long-term algorithm.
Forward Guidance
The Company reaffirms its prior full year outlook and anticipates the following for the full fiscal year 2023: Net sales to increase slightly greater than the 4-6% long-term algorithm. Included in the sales outlook is a headwind of almost 1 percentage point related to the previously discussed agreement to license the Quest frozen pizza business; Gross margin will decline versus last year, although at a lower rate than fiscal 2022; Adjusted EBITDA to increase, but slightly less than the net sales growth rate; and, Adjusted Diluted EPS to increase less than the Adjusted EBITDA growth rate primarily due to higher interest expense from an increase in the variable interest rate related to its term loan debt.
Positive Outlook
- Net sales to increase slightly greater than the 4-6% long-term algorithm.
- Sales outlook includes a headwind of almost 1 percentage point related to the Quest frozen pizza business licensing.
- Gross margin decline will be at a lower rate than fiscal 2022.
- Adjusted EBITDA to increase, but slightly less than the net sales growth rate.
- Company believes it is well positioned to deliver on its objectives.
Challenges Ahead
- Adjusted Diluted EPS to increase less than the Adjusted EBITDA growth rate.
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