Simply Good Foods Reports Earnings Above Street View, Over $115M In Gross Profit

The Simply Good Foods Company SMPL reported first-quarter FY24 sales growth of 2.6% year-on-year to $308.68 million. The company missed the analyst consensus estimate of $309.13 million.

Sales performance was driven by Quest volume growth, which more than offset Atkins softness.

Gross profit was $115.1 million, with a gross margin expanding 40 basis points Y/Y to 37.3%.

Operating expenses rose 8.2% to $63.3 million. Operating margin was 16.8%.

Adjusted EBITDA increased 2% Y/Y to $62 million.

Net income slightly dipped to $35.6 million from $35.9 million last year. Adjusted EPS of $0.43 beats the consensus of $0.42.

The company generated $47.5 million operating cash flow during the quarter and ended Q1 with cash and equivalents totaling $121.4 million.

Outlook Reaffirmed: SMPL continues to expect FY24 net sales to increase at the high end of the company's long-term algorithm of 4-6%.

Adjusted EBITDA is expected to increase slightly greater than the net sales growth rate.

Price Action: SMPL shares closed lower by 0.30% at $39.59 on Wednesday.

Now Read: Walgreens Boots Alliance Nearly Halves Dividend To Strengthen Balance Sheet, Reports Better Than Expected Q1 Earnings