Simply Good Foods Q2 Earnings Top Estimates, Sales Rise 15.2% Y/Y

The Simply Good Foods Company SMPL reported solid second-quarter fiscal 2025 results, wherein both top and bottom lines beat the Zacks Consensus Estimate and increased year over year.The company’s strong performance reflected solid execution across distribution, innovation and brand-building efforts. Continued consumer demand, favorable input costs and disciplined cost management supported profitability. With growing interest in high-protein, low-sugar and low-carb products, the company believes its brand portfolio is well-positioned for long-term growth.SMPL’s Quarterly Performance: Key Metrics and InsightsSimply Good Foods posted adjusted earnings of 46 cents per share, surpassing the Zacks Consensus Estimate of 39 cents. Also, the figure increased from the 40 cents reported in the same quarter last year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The Simply Good Foods Company Price, Consensus and EPS Surprise The Simply Good Foods Company price-consensus-eps-surprise-chart | The Simply Good Foods Company QuoteThe company reported net sales of $359.7 million, which beat the Zacks Consensus Estimate of $353 million. The metric increased 15.2% from $312.2 million posted in the year-ago period. OWYN net sales were $33.8 million. International organic net sales declined $2.1 million year over year to $6.4 million.Total Simply Good Foods retail takeaway increased 7%, supported by robust point-of-sale growth from Quest and OWYN, up about 13% and 52%, respectively. In contrast, Atkins retail takeaway declined around 10%.Gross profit increased 11.4% year over year to $130.1 million. This increase was primarily driven by organic volume growth and the addition of OWYN. This was partially offset by a $0.4 million non-cash inventory step-up purchase accounting adjustment related to the OWYN acquisition. Gross margin declined 120 basis points to 36.2%.Operating expenses totaled $75.4 million, an increase of $6.6 million compared with the same period last year. Adjusted EBITDA rose to $68 million, up from $57.8 million in the prior-year period.SMPL Stock: Other Updates & DevelopmentsSimply Good Foods exited the quarter with cash of $103.7 million and an outstanding principal balance of $300 million on its term loan. During the quarter, the company repaid $50 million in term loan debt, bringing total repayments for the fiscal year to date to $100 million.For the 26 weeks ended March 1, 2025, cash flow from operations totaled $63.3 million, down from $94 million in the prior-year period.What to Expect From SMPL in Fiscal 2025?For fiscal 2025, the company expects net sales to grow between 8.5% and 10.5%. OWYN net sales are projected to range from $140-$150 million. The Company expects organic net sales growth to be driven primarily by volume. The company expects gross margin to decline approximately 200 basis points compared with fiscal 2024. While favorable commodity costs year to date, ongoing productivity and cost-saving initiatives, and pricing actions are expected to support margins, these benefits are likely to be outweighed by higher input costs anticipated in the second half of the year, along with preliminary estimates of costs associated with recently announced tariffs.Adjusted EBITDA is anticipated to increase 4-6%.This Zacks Rank #3 (Hold) stock has jumped 5.1% in the past three months compared with the industry’s growth of 0.9%.Image Source: Zacks Investment ResearchStocks Looking Red HotUnited Natural Foods, Inc. UNFI distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. It currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The consensus estimate for United Natural Foods’ current financial-year sales and earnings implies growth of 1.9% and 485.7%, respectively, from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 408.7%, on average.Post Holdings, Inc. POST operates as a consumer packaged goods holding company in the United States and internationally and presently carries a Zacks Rank of 2. POST delivered a trailing four-quarter earnings surprise of 22.3%, on average.The Zacks Consensus Estimate for Post Holdings’ current financial-year sales and earnings indicates growth of 0.3% and 2.2%, respectively, from the year-ago numbers.Utz Brands UTZ engages in the manufacture, marketing and distribution of snack foods in the United States and presently carries a Zacks Rank of 2. UTZ delivered a trailing four-quarter earnings surprise of 8.8%, on average.The Zacks Consensus Estimate for Utz Brands’ current financial-year sales and earnings indicates growth of 1.2% and 10.4%, respectively, from the year-ago numbers.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report United Natural Foods, Inc. (UNFI): Free Stock Analysis Report Post Holdings, Inc. (POST): Free Stock Analysis Report The Simply Good Foods Company (SMPL): Free Stock Analysis Report Utz Brands, Inc. (UTZ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks