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Simply Good Foods Reiterates Full-Year Outlook as Fiscal Second-Quarter Results Beat Estimates
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Simply Good Foods Reiterates Full-Year Outlook as Fiscal Second-Quarter Results Beat Estimates
Apr 9, 2025 8:17 AM

10:47 AM EDT, 04/09/2025 (MT Newswires) -- Simply Good Foods ( SMPL ) shares rose intraday Wednesday as the company affirmed its full-year guidance and reported fiscal-second quarter results that surpassed Wall Street's expectations.

The nutritional food company continues to expect fiscal 2025 net sales growth of 8.5% to 10.5%, with organic sales gains expected to be driven primarily by volumes. The consensus on FactSet is for full-year sales of $1.46 billion. The company reiterated its adjusted earnings before interest, taxes, depreciation and amortization growth outlook of 4% to 6%.

The outlook assumes current economic conditions and consumer behavior to remain "generally consistent" over the rest of the company's fiscal year, Chief Financial Officer Shaun Mara said during an earnings call, according to a FactSet transcript.

"It's a dynamic time with a lot of uncertainty and pressure on consumer sentiment," Chief Executive Geoff Tanner said on the call. "But despite today's uncertain backdrop, we plan to be at the forefront of the generational shift as demand for high-protein, low-sugar and low-carbon food and beverage products continues to mainstream."

The majority of the company's products are made and sold in the US, Tanner told analysts. Shares of the company were up 10.4% in Wednesday trade.

Last week, the Trump administration announced broad-scale tariffs on US imports, including from China, which raised its tariffs on US goods to 84% from 34% on Wednesday.

Net sales for the quarter ended March 1 jumped 15% year over year to $359.7 million, above the Street's view of $354.6 million. Adjusted earnings per share rose to $0.46 from $0.40 a year earlier and beat the $0.41 consensus estimate.

Results for the year-earlier period exclude Simply Good Foods' ( SMPL ) acquisition of Only What You Need, or OWYN, which closed in June.

The company's retail takeaway rose 7% in the quarter, with point-of-sales growth of about 13% and 52% for Quest and OWYN brands, respectively. Atkins' retail takeaway was down by about 10%.

Price: 36.68, Change: +3.49, Percent Change: +10.50

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