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The Simply Good Foods pany(SMPL) - 2024 Q4 - Earnings Call Transcript
2024-10-24 15:44
Financial Data and Key Metrics Changes - The company reported Q4 net sales of $375.7 million, a 17.2% increase year-over-year, driven by the OWYN acquisition and the additional week in the fiscal calendar [21][22] - Full-year net sales reached $1.33 billion, up 7.1% from the previous year, with OWYN contributing 2.4 percentage points to this growth [22] - Adjusted EBITDA for Q4 was $77.5 million, a 15% increase compared to the same period last year [6][23] - Gross margin improved to 38.8%, a 120 basis point increase year-over-year, despite a non-cash inventory purchase accounting step-up adjustment related to the OWYN acquisition [23][25] Business Line Data and Key Metrics Changes - North America Quest net sales increased about 5%, while Atkins sales declined about 5% on a like-for-like basis [6] - OWYN's retail takeaway in measured channels was strong, with significant growth across all major retail customers, making it the third largest sports nutrition multi-pack brand in the U.S. [17][18] - Quest snacks and bars retail takeaway in combined channels increased about 17%, with salty snacks showing a standout growth of 34% [10][12] Market Data and Key Metrics Changes - The nutritional snacking category grew by 7.3% in measured channels, driven primarily by volume [9] - OWYN's growth was attributed to increased distribution and velocity, with expectations of 20% to 30% growth in fiscal 2025 [18] - The e-commerce business continued to perform well, contributing nearly 2 percentage points to total retail takeaway [9] Company Strategy and Development Direction - The company aims to focus on innovation, marketing, and increased physical availability to drive trial and household penetration in fiscal 2025 [7][19] - The integration of OWYN is progressing as planned, with expectations of significant shareholder value creation through revenue growth and cost synergies [8][18] - The company plans to optimize ROI on Atkins brand investments, which may lead to a decline in sales growth in fiscal 2025 [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the nutritional snacking category's growth trajectory, driven by health and wellness trends [7][19] - The company anticipates input cost inflation to impact gross margins in fiscal 2025, projecting a contraction of about 200 basis points [25][30] - Management expects fiscal 2025 net sales growth in the range of 8.5% to 10.5%, with adjusted EBITDA growth slightly greater than net sales [30][31] Other Important Information - The company repaid $135 million of its term loan in fiscal 2024, resulting in a net debt to adjusted EBITDA ratio of 1x [28] - Capital expenditures for fiscal 2025 are expected to be in the range of $10 million to $15 million [28] Q&A Session Summary Question: Insights on recent innovation performance - Management noted that the Bake Shop platform is performing well, with early distribution feedback being encouraging [32][33] Question: Competitive landscape for the upcoming New Year - Management is optimistic about their merchandising plans and believes they are well-positioned despite competitive pressures [37][38] Question: Growth outlook for legacy business - Management indicated that underlying growth for the legacy business is expected to be around 3% for fiscal 2025, with various moving parts affecting performance [39][43] Question: OWYN's growth assumptions - Management explained that OWYN's growth expectations are conservative due to the need to fill distribution voids and the impact of previous significant growth [45][47] Question: Marketing effectiveness and spending levels - Management highlighted the success of the "it's basically cheating" campaign for Quest and indicated a 20% increase in advertising spend for fiscal 2025 [50][53] Question: Expectations for Atkins brand performance - Management acknowledged that negative sales growth for Atkins is anticipated until fiscal 2026, due to strategic investment decisions [55][57] Question: Quest Bars competition and revenue expectations - Management recognized increased competition in the Quest Bars segment but remains focused on innovation and pricing strategies to maintain market leadership [61][63]
Simply Good Foods (SMPL) Q4 Earnings and Revenues Surpass Estimates
ZACKS· 2024-10-24 13:25
Core Viewpoint - Simply Good Foods (SMPL) reported quarterly earnings of $0.50 per share, exceeding the Zacks Consensus Estimate of $0.48 per share, and showing an increase from $0.45 per share a year ago [1] Financial Performance - The company achieved revenues of $375.69 million for the quarter ended August 2024, surpassing the Zacks Consensus Estimate by 0.24% and up from $320.42 million year-over-year [1] - Over the last four quarters, Simply Good Foods has exceeded consensus EPS estimates four times but has only topped consensus revenue estimates once [1] Stock Performance - Simply Good Foods shares have declined approximately 18.6% since the beginning of the year, contrasting with the S&P 500's gain of 21.5% [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.44 on revenues of $349.98 million, while for the current fiscal year, it is $1.91 on revenues of $1.47 billion [4] - The estimate revisions trend for Simply Good Foods is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [4] Industry Context - The Food - Confectionery industry, to which Simply Good Foods belongs, is currently ranked in the bottom 17% of over 250 Zacks industries, suggesting potential challenges for stock performance [5] - Hershey (HSY), another company in the same industry, is expected to report quarterly earnings of $2.62 per share, reflecting a year-over-year change of +0.8%, with revenues anticipated at $3.09 billion, up 2.1% from the previous year [5]
The Simply Good Foods pany(SMPL) - 2024 Q4 - Earnings Call Presentation
2024-10-24 12:45
| --- | --- | |---------------------------------------------------------|-------| | | | | Fourth Quarter & Full Fiscal Year 2024 | | | Conference Call & Webcast Presentation October 24, 2024 | | Disclaimer Forward Looking Statements Certain statements made herein are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by or include words such as "wil ...
The Simply Good Foods pany(SMPL) - 2024 Q4 - Annual Results
2024-10-24 11:01
1 The Simply Good Foods Company Reports Fiscal Fourth Quarter and Full Fiscal Year 2024 Financial Results and Provides Full Fiscal Year 2025 Outlook Denver, CO, October 24, 2024 - The Simply Good Foods Company (Nasdaq: SMPL) ("Simply Good Foods," or the "Company"), a developer, marketer and seller of branded nutritional foods and snacking products, today reported financial results for the fourteen and fifty-three weeks ended August 31, 2024. The acquisition of Only What You Need, Inc. ("OWYN") was completed ...
The Simply Good Foods Co (SMPL) Shares Gap Down to $33.495 on Oct 2
GuruFocus· 2024-10-02 16:07
Group 1 - The Simply Good Foods Co (SMPL) shares fell 3.89% to $33.50, down from a previous close of $34.85, marking a 22.10% decline from its 52-week high of $43.00 and an 11.65% increase from its 52-week low of $30.00 [1] - Trading volume for SMPL was 312,112 shares, which is 33.9% of the average daily volume of 920,591 [1] Group 2 - Wall Street analysts have set an average target price of $39.56 for SMPL, indicating an upside potential of 18.09% from the current price [2] - The highest price estimate from analysts is $46.00, while the lowest is $34.00 [2] - The average brokerage recommendation for SMPL is 1.9, suggesting an "Outperform" status [2] - GuruFocus estimates the fair value (GF Value) of SMPL at $47.13, indicating a potential upside of 40.71% from the current price [2]
The Simply Good Foods Company Names Mike Clawson as Chief Customer Officer
GlobeNewswire News Room· 2024-09-09 20:05
DENVER, Sept. 09, 2024 (GLOBE NEWSWIRE) -- The Simply Good Foods Company (Nasdaq: SMPL) ("Simply Good Foods," or the "Company"), a developer, marketer and seller of branded nutritional foods and snacking products, today announced Mike Clawson as Chief Customer Officer ("CCO"), effective October 14, 2024. As the Company embarks on its next chapter of growth, a cornerstone of its strategic growth plan is an enhanced selling model and approach. This new sales playbook is centered on building multi-year growth ...
Introducing Quest™ Bake Shop: Cheat-Worthy Brownies and Muffins That are Big on Protein and Even Bigger on Flavor
Prnewswire· 2024-08-26 16:00
Made for those who want all the flavor with the benefits of a nutritional boost, Quest™ Bake Shop brings a new level of snacking to the table. Each Chocolate Brownie, Blueberry Muffin, and Chocolate Chip Muffin has 10g of protein, 2-3g of net carbs, and less than 2g of sugar per serving. Quest's mission to turn snacks into ultimate hacks makes it easier than ever to enjoy the classic and nostalgic flavors consumers love while supporting their goals. Quest™ Bake Shop Brownies: Cheat on brownies with brownies ...
The Simply Good Foods pany(SMPL) - 2024 Q3 - Quarterly Report
2024-06-27 18:44
The following table summarizes performance stock unit activity for the thirty-nine weeks ended May 25, 2024: Stock appreciation rights ("SARs") permit the holder to participate in the appreciation of the Company's common stock price and are awarded to non-employee consultants of the Company. The Company's SARs settle in shares of its common stock once the applicable vesting criteria have been met. The SARs outstanding as of May 25, 2024, cliff vest two years from the date of grant and must be exercised with ...
The Simply Good Foods pany(SMPL) - 2024 Q3 - Earnings Call Transcript
2024-06-27 16:37
The Simply Good Foods Company (NASDAQ:SMPL) Q3 2024 Earnings Conference Call June 27, 2024 9:00 AM ET Company Participants Mark Pogharian - Vice President of Investor Relations Geoff Tanner - President, Chief Executive Officer and Director Shaun Mara - Chief Financial Officer Conference Call Participants Matthew Smith - Stifel Alexia Howard - AllianceBernstein John Baumgartner - Mizuho Securities Jon Andersen - William Blair Stephen Powers - Deutsche Bank Brian Holland - D.A. Davidson Kaumil Gajrawala - Jef ...
Simply Good Foods (SMPL) Surpasses Q3 Earnings Estimates
ZACKS· 2024-06-27 13:16
This quarterly report represents an earnings surprise of 4.17%. A quarter ago, it was expected that this nutritional foods company would post earnings of $0.37 per share when it actually produced earnings of $0.40, delivering a surprise of 8.11%. Simply Good Foods, which belongs to the Zacks Food - Confectionery industry, posted revenues of $334.76 million for the quarter ended May 2024, missing the Zacks Consensus Estimate by 0.96%. This compares to year-ago revenues of $324.79 million. The company has top ...