Read How Simply Good Foods Performed In Q3

Simply Good Foods Co SMPL reported third-quarter FY22 sales growth of 11.5% year-on-year to $316.53 million, beating the consensus of $294.11 million.
Gross profit was $118.6 million, with a gross margin contracting 510 basis points Y/Y to 37.5%.
Operating expenses were $63.4 million, up 4.5% Y/Y. Operating margin was 17.5%.
Adjusted EBITDA decreased 6.2% Y/Y to $63.3 million.
Net income jumped to $38.8 million from $5.9 million last year. Adjusted EPS of $0.44 beats the consensus of $0.35.
The company generated $67.3 million operating cash flow during nine months and ended Q3 with cash and equivalents totaling $56.7 million.
Outlook: Simply Good sees FY22 sales growth of 14% - 15%. Adjusted EBITDA outlook is expected to increase slightly less than the net sales growth rate, while Adjusted EPS is expected to grow greater than the Adjusted EBITDA growth rate.
"The net sales increase in the quarter was greater than our expectation due to better than anticipated retail takeaway growth and higher customer inventory that was not drawn down during the quarter," said CEO Joseph E. Scalzo.
Price Action: SMPL shares are trading lower by 3.98% at $39.56 on the last check Thursday.
Photo Via Wikimedia Commons

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