Simply Good Foods Co SEC 10-Q Report

The Simply Good Foods Company, a leading player in the nutritious snacking industry, has released its Form 10-Q report for the third quarter of fiscal year 2025. The report highlights significant financial and operational achievements, driven by strategic acquisitions and robust brand performance.

Financial Highlights

Net Sales: The company reported net sales of $380.956 million, marking a 13.8% increase compared to the same period last year. This growth was primarily driven by the OWYN Acquisition and volume growth in the Quest brand.

Gross Profit: Gross profit stood at $138.519 million, representing 36.4% of net sales. This is a decrease of 350 basis points from the prior year period, attributed to unfavorable commodity expenses and lower gross profit margins from the OWYN business.

Income from Operations: Income from operations was $59.320 million, representing 15.6% of net sales. This is slightly higher than the previous year despite increased operating expenses.

Net Income: The company reported a net income of $41.102 million, a slight decrease from the previous year, impacted by higher other expenses and income tax expense.

Diluted EPS: Diluted earnings per share (EPS) were $0.40, reflecting a minor decrease compared to the previous year, consistent with the slight decrease in net income.

Business Highlights

Revenue Segments: The Simply Good Foods Company saw a significant increase in net sales driven by the OWYN Acquisition and Quest volume growth, which offset the continued softness in the Atkins brand. The North America segment experienced a 14.3% increase in net sales for the thirteen weeks ended May 31, 2025, compared to the same period in 2024, while International net sales decreased slightly.

Geographical Performance: The company's performance in North America was strong, with a notable increase in net sales. However, the International segment experienced a decrease in net sales, highlighting a regional disparity in performance.

Sales Units: The Quest brand experienced volume growth, contributing significantly to the overall increase in net sales. This growth was a key factor in offsetting the decline in the Atkins brand.

New Product Launches: The acquisition of OWYN, a plant-based protein food company, expanded the company's product offerings to include plant-based protein-rich beverages, aligning with current health and wellness trends.

Future Outlook: The company expects fiscal year 2025 organic sales growth to be driven primarily by volume, supported by strong advertising and marketing plans, as well as innovation, merchandising, and promotions. The integration of OWYN is expected to continue, enhancing the company's position in the nutritious snacking market.

SEC Filing: Simply Good Foods Co [ SMPL ] - 10-Q - Jul. 10, 2025