The Simply Good Foods Company Reports Fiscal Second Quarter 2025 Financial Results and Reaffirms Fiscal Year 2025 Outlook

Core Viewpoint - The Simply Good Foods Company reported strong financial results for the second quarter and reaffirmed its fiscal year 2025 outlook, driven by the acquisition of OWYN and growth in its core brands, particularly Quest and Atkins [2][3][21]. Financial Performance - Net sales increased by $47.5 million, or 15.2%, to $359.7 million, with OWYN contributing $33.8 million, or 10.8%, to this growth [3][16]. - Adjusted EBITDA grew by 18% year-over-year to $68.0 million, benefiting from favorable commodity prices and strong cost discipline [2][8]. - Net income for the quarter was $36.7 million, a 10.9% increase from $33.1 million in the previous year [8][9]. Brand Performance - Simply Good Foods experienced a 7% increase in total retail takeaway, with Quest and OWYN showing point-of-sale growth of approximately 13% and 52%, respectively [4][11]. - Organic net sales grew by 4.4%, primarily driven by the Quest brand, while international organic net sales declined by $2.1 million [3][10]. Operating Expenses - Operating expenses rose to $75.4 million, an increase of $6.6 million, with selling and marketing expenses slightly up due to the inclusion of OWYN [6][13]. - General and administrative expenses increased by $6.1 million, largely attributed to the OWYN acquisition [6][13]. Outlook - The company expects net sales to increase by 8.5% to 10.5% for fiscal year 2025, with adjusted EBITDA anticipated to grow by 4% to 6% [7][22]. - The outlook incorporates a headwind of approximately 2 percentage points due to the fifty-third week in fiscal year 2024 [7][27]. Balance Sheet and Cash Flow - As of March 1, 2025, the company had cash of $103.7 million and an outstanding term loan balance of $300 million, having repaid $100 million year-to-date [18][19]. - Cash flow from operations was approximately $63.3 million, down from $94 million in the previous year, primarily due to lower net working capital [18][39]. Management Changes - The company announced the retirement of Chief Financial Officer Shaun Mara, effective July 3, 2025, with Christopher J. Bealer set to succeed him [20].