earnings
confidence high
sentiment positive
materiality 0.75
Simply Good Foods Q3 EPS beats; raises FY24 adj. EBITDA outlook to ~8% growth; OWYN acquired
Simply Good Foods Co
2024-Q3 EPS reported
$1.09
revenue$955,634,000
- Net sales $334.8M (+3.1% YoY); net income $41.3M; diluted EPS $0.41; adjusted diluted EPS $0.50 vs $0.44 YoY.
- Gross margin 39.9%, up 320 bps YoY, driven by lower input costs; adjusted EBITDA $71.9M vs $66.6M YoY.
- Completed OWYN acquisition on June 13 for $280M cash + $250M incremental term loan; OWYN expected to add $25-30M net sales in FY24.
- Full-year legacy net sales reaffirmed at mid-point of 4-6% growth; total adj. EBITDA growth raised to ~8% from prior 6-8%.
- Quest retail takeaway +13%; Atkins -5%; net debt target ~1.25x adj. EBITDA by fiscal year-end.