Loading...
•
Aug 28, 2021
Simply Good Foods Q4 2021 Earnings Report
Reported solid sales and earnings growth, increased gross margin, and instituted a price increase.
Key Takeaways
Simply Good Foods reported a strong fourth quarter and fiscal year 2021, delivering solid sales and earnings growth. Net sales increased by 16.9%, driven by solid Atkins and Quest performance. The company also increased gross margin in an inflationary environment and instituted a price increase.
Net sales increased 16.9% driven by solid Atkins and Quest performance
Gross profit margin of 40.2%, an increase of 60 basis points
Net income of $18.2 million versus a net loss of $39.3 million
Adjusted EBITDA increased 30.9% to $48.5 million
Forward Guidance
Assuming no meaningful improvement in workplace mobility and no significant supply chain cost inflation from current levels, the Company anticipates net sales to increase 8-10% versus last year, modest gross margin contraction, Adjusted EBITDA to increase slightly greater than the net sales growth rate, and Adjusted Diluted EPS to increase greater than the Adjusted EBITDA growth rate in fiscal 2022.
Positive Outlook
- Net sales to increase 8-10% versus last year.
- Included in the sales outlook is about a 1 percentage point headwind related to the European business exit that was completed in the fourth quarter of fiscal 2021.
- Modest gross margin contraction as supply chain cost inflation should largely be offset by the price increase that went into effect in September and cost savings initiatives.
- Full-year fiscal 2022 Adjusted EBITDA to increase slightly greater than the net sales growth rate.
- Adjusted Diluted EPS to increase greater than the Adjusted EBITDA growth rate.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...