Simply Good Foods Co., a prominent manufacturer of nutritional foods and snacks, recently availed its second-quarter earnings. The company disclosed a significant increase in its profits and sales, although the predicted Atkins consumption for Q2 fell short of expectations.
The company's net income saw an impressive growth, escalating to $33.1 million from the previous year’s $25.6 million. Earnings per share followed suit, registering at $0.33, a notable rise from the prior year’s $0.25.
When adjusted, earnings per share came in at $0.40, a growth from $0.32 during the same period last year. Notably, these figures surpassed the predictions of Thomson Reuters-referenced analysts, who expected the company to report earnings of $0.38 per share, independent of special items.
Adjusted EBITDA, an important measure of earnings, rose from $50.9 million last year to $57.8 million in the second quarter. In the net sales sector, Simply Good Foods Co. saw a 5.3% increase with the figures standing at $312.2 million, up from last year’s $296.6 million. Despite this increase, it fell short of analysts’ expectations, which projected sales of $316.88 million. Nevertheless, the company attributed the boost in sales performance to Quest volume.
The net sales data segmented by geographic region points to increases of 5.1% and 12.2% in North America and internationally, respectively. Peeking into fiscal 2024, the company anticipates a mid-point increase in net sales in line with its long-term algorithm of 4-6%, a projection that accommodates the benefit of a fifty-third week. This is a revision from the company's initial forecast, which expected an increment at the high-end of the algorithm.
For adjusted EBITDA, an increase of 6-8% is expected for the year, supported by a robust expansion of gross margin. Simply Good Foods Co. maintains its expectation that volume growth will drive net sales for the year ending in fiscal 2024.
