12:46 PM EST, 01/08/2025 (MT Newswires) -- Simply Good Foods ( SMPL ) reiterated its full-year outlook on Wednesday as healthy food trends continued, though it grew sales less than the market expected in the fiscal first quarter.

The nutritional food company affirmed its full-year sales growth outlook of 8.5% to 10.5% over fiscal 2024's revenue of $1.33 billion. Analysts surveyed by FactSet are modeling for sales of $1.46 billion in the ongoing year. Management continues to expect adjusted earnings before interest, taxes, depreciation and amortization growth of 4% to 6%.

"We have strong marketing plans in place to support all our brands in the upcoming 'New Year, New You' season that should result in solid overall volume driven growth," Chief Executive Geoff Tanner said in a statement.

In the first quarter, revenue rose to $341.3 million from $308.7 million a year ago but missed analysts' $347.3 million estimate. Adjusted earnings per share ticked up to $0.49 for the three months ended Nov. 30 from $0.43 the year earlier and beat the $0.47 consensus view.

Results for the year-earlier period don't include Simply Good Foods' ( SMPL ) acquisition of Only What You Need, or OWYN, which closed in June. Shares of Simply Good Foods ( SMPL ) fell 2% intraday.

"We continue to see increased relevance and 'mainstreaming' of nutritional snacking products as consumers seek high protein, low-sugar, low-carb foods," Tanner said. This led to strong retail takeaway growth for the industry and company, he said.

The parent of the Atkins and Quest brands reported first-quarter retail takeaway of about 8%, led by point-of-sales growth of about 10% and 67%, respectively, for Quest and OWYN. "Atkins retail takeaway was off about 4% and was slightly better than estimates," the company said.

"As we exited the first quarter, Quest chips capacity returned to optimal levels, and we now have the capability to support merchandising and programming as well as increased distribution for these products," according to Tanner.

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