The Simply Good Foods Company (NASDAQ: SMPL) has reported its financial results for the fiscal first quarter 2024, ending on November 25, 2023, indicating a 2.6% increase in net sales to $308.7 million. The company also posted a net income of $35.6 million and earnings per diluted share of $0.35. Geoff Tanner, President and CEO of Simply Good Foods, expressed satisfaction with the results, stating, "We are pleased with our fiscal first quarter financial results and marketplace performance that were in line with estimates."
Tanner emphasized the company's positive start to the year and its strong marketing and merchandising plans in place for "new year, new you" season. He reaffirmed the company's full-year fiscal 2024 outlook, expecting net sales growth, driven by volume, to be at the high end of their 4-6% long-term projection. This includes the benefit of a fifty-third week, with adjusted EBITDA anticipated to increase slightly higher than the net sales growth rate. Tanner expressed confidence in the company's strategy and execution, believing it is positioned to drive sustained profitable growth.
The company's gross margin increased to 37.3% in the first quarter of fiscal 2024, up from 36.9% in the previous year, primarily due to lower ingredient and packaging costs. Additionally, the company reported adjusted EBITDA of $62.0 million, compared to $60.8 million in the year-ago period, and adjusted diluted EPS of $0.43, up from $0.42 in the same period.
Looking ahead, the company reaffirms its full-year fiscal 2024 outlook, expecting sales growth to be driven by volume and anticipating lower supply chain costs, resulting in strong gross margin expansion. This will provide flexibility to invest in marketing and growth initiatives, as well as new organizational capabilities.
At the end of the first quarter of fiscal 2024, the company had cash of $121.4 million, with cash flow from operations increasing to about $47.5 million, an increase of $38.8 million compared to the previous year. The company also repaid $10.0 million of its term loan debt during the quarter and subsequently repaid an additional $25.0 million of its term debt.
The Simply Good Foods Company aims to lead the nutritious snacking movement with trusted brands that offer a variety of convenient, innovative, great-tasting, better-for-you snacks and meal replacements. The product portfolio primarily consists of protein bars, ready-to-drink shakes, sweet and salty snacks, and confectionery products marketed under the Quest and Atkins brand names.
The company's full 8-K submission is available here.
