Simply Good Foods Q4 2024 Earnings Report
Key Takeaways
Simply Good Foods reported a 17.2% increase in net sales to $375.7 million for the fourth quarter, driven by the OWYN acquisition and legacy net sales growth. Adjusted EPS increased to $0.50, while net income was $29.3 million. The company provided a full fiscal year 2025 outlook, anticipating net sales growth of 8.5% to 10.5% and Adjusted EBITDA growth of 4% to 6%.
Net sales increased by 17.2% to $375.7 million, with OWYN contributing 9.1 percentage points to growth.
Legacy net sales increased by 8.1%, including a 7.7 percentage point benefit from the extra week.
Adjusted EPS increased to $0.50 from $0.45 in the prior year.
Gross profit increased to $146.0 million, with gross margin at 38.8%.
Simply Good Foods
Simply Good Foods
Forward Guidance
The Company expects net sales to increase 8.5% to 10.5% and Adjusted EBITDA to increase 4% to 6% in fiscal year 2025.
Positive Outlook
- Strong Quest and OWYN net sales and retail takeaway growth driven by greater velocity.
- Increased distribution.
- Innovation.
- Marketing investments.
- OWYN integration work is well underway and progressing as planned.
Challenges Ahead
- The fifty-third week in fiscal 2024 comparison year is about a 2-percentage point headwind to both Net Sales and Adjusted EBITDA growth in full year fiscal 2025.
- The Company anticipates gross margin compression in fiscal 2025.
- Focus on optimizing and improving the ROI of Atkins' brand investments in fiscal 2025 will affect Atkins fiscal 2025 net sales and retail takeaway.
- The Company expects input cost inflation in fiscal 2025.
- Temporary Quest chips capacity constraints.