NASDAQ$SMPL
The Simply Good Foods Company · Q1 2023 earnings
Q1 2023 earnings · · Investor relations
Briefing
Simply Good Foods reported first quarter 2023 financial results with net sales increase and reaffirmed full fiscal year 2023 net sales and Adjusted EBITDA outlook.
Simply Good Foods reported a 7.0% increase in net sales to $300.9 million for the first quarter of fiscal year 2023. Net income increased to $35.9 million, with EPS at $0.36. The company reaffirmed its full fiscal year 2023 net sales and Adjusted EBITDA outlook, expecting net sales to increase slightly greater than the 4-6% long-term algorithm and Adjusted EBITDA to increase in line with net sales growth rate.
- Net sales increased 7.0% compared to the year-ago period.
- Net income was $35.9 million, up from $21.2 million in the previous year.
- Earnings per diluted share (EPS) increased to $0.36 from $0.22.
- The company reaffirmed fiscal year 2023 net sales and Adjusted EBITDA outlook.
Headline financials
Revenue & EPS history
Simply Good Foods · Revenue · Quarterly
$301M
Revenue by segment
Simply Good Foods · $231M total across 2 segments · Q1 2021
- Atkins$135M—58.6%
- Quest$95.8M—41.4%
Forward guidance
The Company anticipates the following in fiscal 2023: Net sales to increase slightly greater than the 4-6% long-term algorithm; Gross margin will decline versus last year, although at a lower rate than fiscal 2022; Full-year fiscal 2023 Adjusted EBITDA to increase in line with the net sales growth rate; and, Adjusted Diluted EPS to increase less than the Adjusted EBITDA growth rate due to the Company’s expectation of higher interest expense from an increase in the variable interest rate related to its term loan debt, partially mitigated by fewer shares outstanding.
Tailwinds
- Net sales to increase slightly greater than the 4-6% long-term algorithm.
- Gross margin will decline versus last year, although at a lower rate than fiscal 2022.
- Full-year fiscal 2023 Adjusted EBITDA to increase in line with the net sales growth rate.
- The Company has made significant marketing and organizational investments in its business over the past few years, which it believes should continue to result in the growth of its consumer base, distribution and market share gains.
Headwinds
- Adjusted Diluted EPS to increase less than the Adjusted EBITDA growth rate due to the Company’s expectation of higher interest expense from an increase in the variable interest rate related to its term loan debt, partially mitigated by fewer shares outstanding.
- Gross margin will decline versus last year
- Supply chain costs to be higher than last year.
- Headwind of almost 1 percentage point related to the previously discussed agreement to license the Quest frozen pizza business
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 19 quarterly earnings reports · overlaid with Q1 2023
+0.5%
Avg return
Earnings day
-0.3%
Avg return
5 days after
+1.6%
Avg return
30 days after
51%
18 / 35 earnings
Positive
+16.8%
Q4 2022
Best reaction
-17.5%
Q4 2025
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q3 2026 | — | — | — | |
| Q2 2026 | -0.3% | -21.0% | -14.9% | |
| Q1 2026 | +6.7% | +9.8% | -10.5% | |
| Q4 2025 | -17.5% | -20.8% | -19.2% | |
| Q3 2025 | -2.9% | -3.9% | -14.7% | |
| Q2 2025 | +9.2% | +13.2% | +7.9% | |
| Q1 2025 | -6.5% | -6.2% | +0.3% | |
| Q4 2024 | +3.8% | +4.7% | +21.0% | |
| Q3 2024 | -0.1% | -1.0% | -6.6% | |
| Q2 2024 | -1.2% | +0.6% | +14.6% | |
| Q1 2024 | +3.8% | +4.4% | -4.3% | |
| Q4 2023 | +11.3% | +11.6% | +21.7% | |
| Q3 2023 | +5.8% | +6.0% | +10.1% | |
| Q2 2023 | -5.9% | -4.5% | -2.2% | |
| Q1 2023 | -7.2% | -5.4% | -5.6% | |
| Q4 2022 | +16.8% | +15.8% | +17.8% | |
| Q3 2022 | -5.8% | -8.9% | -20.8% | |
| Q2 2022 | +10.1% | +6.3% | -0.2% | |
| Q1 2022 | -8.0% | -11.1% | -16.1% | |
| Q4 2021 | +13.1% | +13.3% | +13.7% | |
| Q3 2021 | +2.7% | +1.5% | +2.7% | |
| Q2 2021 | +1.9% | +4.6% | +12.0% | |
| Q1 2021 | -1.2% | -3.3% | -6.0% | |
| Q4 2020 | -4.3% | -11.1% | +6.2% | |
| Q3 2020 | +0.6% | +2.0% | +15.1% | |
| Q2 2020 | -9.3% | -15.9% | -3.1% | |
| Q1 2020 | -13.7% | -12.4% | -16.9% | |
| Q4 2019 | +1.7% | +1.5% | +17.0% | |
| Q3 2019 | +7.2% | +11.5% | +7.3% | |
| Q2 2019 | +3.8% | +1.5% | +2.1% | |
| Q1 2019 | +1.0% | +0.1% | +2.5% | |
| Q4 2018 | -8.7% | -11.0% | +1.2% | |
| Q3 2018 | +12.5% | +13.7% | +14.5% | |
| Q2 2018 | -0.2% | +1.2% | +6.5% | |
| Q1 2018 | +0.2% | +4.5% | +7.4% | |
| Q4 2017 | -0.3% | -0.3% | -6.0% | |
| Q3 2017 | — | — | — | |
| Q2 2016 | — | — | — | |
| Q1 2016 | — | — | — | |
| Q4 2016 | — | — | — | |
| Q3 2016 | — | — | — |
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