NASDAQ$SMPL

The Simply Good Foods Company · Q4 2024 earnings

Q4 2024 earnings · · Investor relations

Briefing

Reported financial results for the fourth quarter and full fiscal year 2024, including approximately eleven weeks of OWYN performance.

Simply Good Foods reported a 17.2% increase in net sales to $375.7 million for the fourth quarter, driven by the OWYN acquisition and legacy net sales growth. Adjusted EPS increased to $0.50, while net income was $29.3 million. The company provided a full fiscal year 2025 outlook, anticipating net sales growth of 8.5% to 10.5% and Adjusted EBITDA growth of 4% to 6%.

  • Net sales increased by 17.2% to $375.7 million, with OWYN contributing 9.1 percentage points to growth.
  • Legacy net sales increased by 8.1%, including a 7.7 percentage point benefit from the extra week.
  • Adjusted EPS increased to $0.50 from $0.45 in the prior year.
  • Gross profit increased to $146.0 million, with gross margin at 38.8%.

Headline financials

Total Revenue

$376M

Previous: $320M+17.2%
EPS (adj)

$0.50

Previous: $0.45+11.1%
Adjusted EBITDA

$77.5M

No prior period
Gross Margin

38.8%

No prior period
Capital Expenditures

-$4.13M

Previous: $1.48M-379.5%
Net Income

$29.3M

Previous: $36.6M-19.9%
Operating Income

$47.8M

Previous: $55.7M-14.2%
Gross Profit

$146M

Previous: $121M+21.2%
Stock-Based Comp

$5.21M

Previous: $4.02M+29.5%

Revenue & EPS history

Simply Good Foods · Revenue · Quarterly

$376M

Q4 2024+17.2%vs Q4 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Simply Good Foods · $231M total across 2 segments · Q1 2021

  • Atkins
    $135M
  • Quest
    $95.8M

Forward guidance

The Company expects net sales to increase 8.5% to 10.5% and Adjusted EBITDA to increase 4% to 6% in fiscal year 2025.

Tailwinds

  • Strong Quest and OWYN net sales and retail takeaway growth driven by greater velocity.
  • Increased distribution.
  • Innovation.
  • Marketing investments.
  • OWYN integration work is well underway and progressing as planned.

Headwinds

  • The fifty-third week in fiscal 2024 comparison year is about a 2-percentage point headwind to both Net Sales and Adjusted EBITDA growth in full year fiscal 2025.
  • The Company anticipates gross margin compression in fiscal 2025.
  • Focus on optimizing and improving the ROI of Atkins' brand investments in fiscal 2025 will affect Atkins fiscal 2025 net sales and retail takeaway.
  • The Company expects input cost inflation in fiscal 2025.
  • Temporary Quest chips capacity constraints.

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 Q4 2024

Historical avgQ4 2024

+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

Earnings price reactions
QuarterReport dateReaction (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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