The Simply Good Foods Company (NASDAQ:SMPL) reported second-quarter adjusted earnings per share of 40 cents per share, beating the analyst consensus of 38 cents.
Quarterly revenues of $312.199 million missed the Wall Street View of $316.885 million. Sales rose 5.3% year over year.
Adjusted EBITDA in the quarter under review was $57.8 million versus $50.9 million in the year-ago period.
“Work is progressing on the Atkins revitalization plan and, as previously discussed, all elements of the plan should be in the marketplace in fiscal 2025,” said Geoff Tanner, President, and Chief Executive Officer of Simply Good Foods.
Gross profit was $116.9 million for the second quarter of fiscal 2024. Margins expanded 280 basis points to 37.4% in the second quarter.
At the end of the second quarter of fiscal 2024, the company had cash of $135.9 million.
“We are particularly pleased with the upcoming launch of Atkins Strong, a 30g protein shake developed for consumers on a weight-loss drug or shoppers seeking higher levels of protein,” Tanner added.
Outlook: Simply Good Foods sees FY24 sales to increase around the mid-point of the company’s long-term algorithm of 4%-6% (prior view: high end of the company’s long-term algorithm of 4%-6%).
Adjusted EBITDA is now anticipated to increase 6%-8% (prior view: slightly greater than the net sales growth rate).
Price Action: SMPL shares are trading lower by 0.66% to $32.38 on the last check Thursday.
