Q1 2025 Simply Good Foods Co Earnings Call Transcript
Key Points
- Net sales increased by 10.6% driven by the acquisition of Only What You Need (OWYN).
- Quest brand showed strong growth with a 10% increase in retail takeaway, driven by new product innovations.
- OWYN's retail takeaway grew by 67%, making it the third largest sports nutrition multipack brand in the US.
- The nutritional snacking category grew by about 12%, largely driven by volume, indicating strong market demand.
- The company reaffirmed its fiscal year 2025 outlook, expecting net sales growth in the 4% to 6% range and adjusted EBITDA growth slightly greater than the net sales increase.
- Atkins brand experienced a 4% decline in retail takeaway, with expectations of high single-digit declines for fiscal year 2025.
- Gross margin is expected to decline by about 300 basis points in Q2 due to higher commodity costs.
- The company is proactively eliminating low ROI investments in Atkins, which will disproportionately affect retail takeaway over the fiscal year.
- There are anticipated club distribution losses for Atkins, which will impact shipments and consumption alignment.
- The company faces input cost inflation in fiscal year 2025, with headwinds increasing beginning in the second quarter.
Greetings and welcome to the Simply Good Foods Company fiscal first quarter 2025 conference call. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Mark Pogharian, Vice President of Investor Relations for Simply Good Foods Company. Thank you, sir. You may begin.
Thank you, operator. Good morning. I'm pleased to welcome into the Simply Good Foods Company first quarter fiscal year 2025 earnings call. Geoff Tanner, President and CEO, and Shaun Mara, CFO will provide you with an overview of results which will then be followed by a Q&A session.
The company issued its earnings release this morning at approximately 7:00 AM. eastern time. A copy of the release and accompanying presentation are available on the investor section of the company's website at www.thesimplygoodfoodscompany.com<
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