Q2 2024 Simply Good Foods Co Earnings Call Transcript
Key Points
- Net sales increased 5.3%, driven by volume and due to the timing of shipments last quarter outpaced retail takeaway of about 3%.
- Quest's retail takeaway was on track with the plan, driven by strong salty snacks growth.
- E-commerce POS growth for both Quest and Atkins continued to be solid.
- Q2 gross margin of 37.4% represented a 280 basis point increase versus the year-ago period, primarily due to lower ingredient and packaging costs.
- Adjusted EBITDA increased 13.6% to $57.8 million, enabled by higher gross profit which allowed for investments in the business.
- Retail takeaway in measured channels was less than the company's expectation.
- Atkins performance was off versus estimates, impacted by a difficult comparison with the previous year's 'new year new you' season.
- The company updated its full year fiscal 2024 outlook, expecting net sales to increase around the midpoint of the long-term algorithm of 4% to 6%, down from the previously expected high end.
- Adjusted EBITDA is now anticipated to increase 6% to 8%, revised from previous expectations due to softer Q2 Atkins consumption trends.
- Atkins Q2 retail takeaway in the IRI MULO plus C-store universe and the combined measured and unmeasured channels was off 11% and 8%, respectively.
Greetings. Welcome to The Simply Good Foods Company Fiscal Second Quarter 2024 conference call.(Operator Instructions)
Please note this conference is being recorded. I will now turn the conference over to Mark Pogharian, Vice President of Investor Relations. Thank you. You may begin.
Thank you, operator. Good morning. I'm pleased to welcome you to Simply Good Foods Company earnings call for the fiscal second quarter ended February 24th, 2024. Jeff Kanter, 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 an earnings release this morning at approximately 7 A.M. Eastern time.
A copy of the release and accompanying presentation are available in the Investors section of the Company's website at w. w. w. dot Simply Good Foods Company.com. This call is being webcast and an archive of today's remarks will also be available.
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