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Aug 29, 2020
Simply Good Foods Q4 2020 Earnings Report
Simply Good Foods' Q4 2020 financial results were reported, showing significant growth driven by the Quest acquisition, despite challenges from the COVID-19 pandemic.
Key Takeaways
Simply Good Foods reported a 59.7% increase in net sales for Q4 2020, driven by the Quest acquisition. Net income increased by 104.0% to $12.4 million. The company is optimistic about long-term growth but acknowledges uncertainty due to the ongoing pandemic.
Net sales increased by 59.7% due to the Quest acquisition.
Net income increased by 104.0% to $12.4 million.
Quest net sales exceeded expectations, with mid-single-digit percentage growth.
Atkins net sales declined by 8.0%, but performed better than internal forecasts.
Simply Good Foods
Simply Good Foods
Forward Guidance
The company anticipates first half of fiscal 2021 net sales will be in the $425-435 million range and Adjusted EBITDA in the $77-82 million range.
Positive Outlook
- Remain on track to achieve the Quest acquisition synergies
- Confident in our business model and long-term growth prospects
- Consumer shopping behavior will return to normal and consumption will improve
- Brand benefits of active nutrition and weight management will drive more better-for-you snacking and meal replacement usage occasions.
- Executing against our strategies and are positioned for long-term sustainable net sales and earnings growth
Challenges Ahead
- Uncertainty related to when consumption behavior and shopping trips will return to normal levels, particularly in the mass market retail channel.
- The unknown duration of these challenges make it difficult to provide a full-year fiscal 2021 outlook at this time.
- Divestiture of the SimplyProtein® brand will be a slight headwind to net sales growth.
- Retail takeaway will be somewhat similar to current trends
- Full year gross margin to be about the same as last year