The Simply Good Foods Co.'s SMPL fourth-quarter FY23 sales increased 16.9% year-over-year to $320.418 million, marginally missing the consensus of $320.77 million.
Adjusted EPS of $0.45 came in line with the consensus.
Gross profit was $120.5 million for the fourth quarter of fiscal 2023, an increase of $18.6 million from the year-ago period.
Gross margin was 37.6% in the fourth quarter of fiscal 2023, expanded from 37.1% last year, an increase of 50 basis points.
The improvement in gross margin was primarily due to lower ingredient and packaging costs.
Operating expenses of $64.7 million increased by $6.4 million versus the comparable period of 2022.
As of Aug. 26, 2023, the company had cash of $87.7 million and a trailing 12-month Net Debt to Adjusted EBITDA ratio of 0.8x.
"As a category leader, we will continue to invest in our brands and partner with retailers to fuel growth. The foundation for Quest is strong and it will drive our business and category growth. We are beginning to deploy the Atkins revitalization plan and believe this should put the brand on a path back to achieving growth," said Geoff E. Tanner, president and CEO.
FY24 Outlook: Net sales are expected to increase at the high end of the company's long-term algorithm of 4%-6%, including the benefit of a fifty-third week.
The company saw adjusted EBITDA increase slightly greater than the net sales growth rate.
Price Action: SMPL shares are trading higher by 5.56% to $34.40 on last check Tuesday.
Photo: Unsplash
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