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Aug 27, 2022
Simply Good Foods Q4 2022 Earnings Report
Simply Good Foods' Q4 2022 financial results were reported, showcasing growth in net sales and earnings per share.
Key Takeaways
Simply Good Foods reported a 5.5% increase in net sales for the fourth quarter of fiscal year 2022, with net income rising to $30.1 million and earnings per diluted share reaching $0.30. The company's adjusted EBITDA also saw an increase, and they provided a positive outlook for fiscal year 2023, expecting continued growth.
Net sales increased by 5.5% to $274.2 million.
Net income was reported at $30.1 million, compared to $18.2 million in the previous year.
Earnings per diluted share (EPS) increased to $0.30, up from $0.19.
Adjusted EBITDA increased to $51.0 million, a rise from $48.5 million year-over-year.
Forward Guidance
The Company anticipates net sales to increase slightly greater than the 4-6% long-term algorithm and Adjusted EBITDA to increase in line with the net sales growth rate in fiscal 2023.
Positive Outlook
- Net sales are expected to increase slightly greater than the 4-6% long-term algorithm.
- Cost savings initiatives are in place to mostly mitigate projected higher supply chain costs.
- Significant marketing and organizational investments are expected to continue resulting in consumer base growth.
- Distribution and market share gains are anticipated.
- Adjusted EBITDA is expected to increase in line with the net sales growth rate.
Challenges Ahead
- Net sales outlook includes a headwind of almost 1 percentage point related to the licensing of the Quest frozen pizza business.
- Gross margin is expected to decline versus last year, although at a lower rate than fiscal 2022.
- Most of the gross margin decline will occur in the fiscal first quarter of 2023 due to prior year comparison.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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