The Simply Good Foods Company Earnings Call Transcripts
Fiscal Year 2026
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Q2 results missed expectations with net sales down 9.4% and adjusted EBITDA down 18.4% year-over-year, driven by executional challenges, inflation, and distribution losses. Management is implementing urgent cost reductions and brand investments, with FY26 guidance lowered and a major reset underway across all brands.
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Q1 results were flat on net sales, with Quest driving growth and Atkins declining as expected. Margins were pressured by inflation and tariffs, but the company reaffirmed its full-year outlook, expects a stronger second half, and accelerated share buybacks with a new $200 million authorization.
Fiscal Year 2025
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Fiscal 2025 saw 9% net sales growth and 3% organic growth, with Quest and OWYN driving gains while Atkins declined. Guidance for 2026 is cautious, with net sales expected between -2% and +2% as inflation and distribution losses weigh on margins, but productivity and innovation are set to drive a stronger second half.
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Net sales rose 13.8% year-over-year, led by Quest and Owen's double-digit growth, while Atkins declined due to distribution cuts. Margins compressed from inflation and tariffs, but productivity and pricing actions are underway. Full-year guidance tightened, with continued strong cash flow and capital flexibility.
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Q2 net sales rose 15% year-over-year, led by double-digit growth in Quest and OWYN, offsetting Atkins declines. FY25 outlook reaffirmed with 8.5%-10.5% net sales growth and 4%-6% adjusted EBITDA growth, despite inflation and tariff headwinds.
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Net sales rose 10.6% to $341.3 million, driven by the OWYN acquisition and strong category growth. Adjusted EBITDA increased 13.1%, and the company reaffirmed its fiscal 2025 outlook, expecting 8.5%-10.5% net sales growth and 4%-6% adjusted EBITDA growth.
Fiscal Year 2024
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Q4 net sales rose 17.2% and adjusted EBITDA grew 15%, driven by the OWYN acquisition and strong Quest performance. Fiscal 2025 guidance calls for 8.5%-10.5% net sales growth, with margin pressure from input cost inflation and a focus on innovation and integration.
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Q3 net sales rose 3.1% year-over-year, led by Quest's strong growth and margin expansion. OWYN acquisition closed, expected to add $25–$30 million to Q4 sales. FY24 guidance reaffirmed, but Atkins faces short-term sales pressure as investments shift to higher-ROI brands.