Q4 2024 Simply Good Foods Co Earnings Call Transcript
Key Points
- Net sales increased by 17.2% in the fiscal fourth quarter, driven by the acquisition of Owen and an additional 53rd week.
- Gross margin improved, resulting in an adjusted EBITDA increase of 15% compared to the previous year.
- The nutritional snacking category continues to grow strongly, driven by volume, with key sub-segments like bars, shakes, and chips showing increases.
- The integration of Owen is progressing as planned, with expectations of significant shareholder value through revenue growth, margin expansion, and cost synergies.
- The Quest brand is expected to have another strong year, with anticipated retail takeaway growth of 9% to 10%, supported by increased production capacity and new product launches.
- Atkins brand sales declined by about 5%, with expectations of continued decline due to reduced marketing and trade investments.
- Temporary chip supply constraints negatively impacted Quest's performance, leading to stockouts at retailers.
- Input cost inflation is anticipated to be a headwind in fiscal 2025, potentially leading to gross margin contraction of about 200 basis points.
- The company plans to discontinue its breakeven Canada export business, impacting fiscal 2025 sales growth.
- Atkins is expected to see a high single-digit decline in retail takeaway in fiscal 2025, partly due to planned reductions in spending and distribution losses.
Ladies and chairmen. Good morning and welcome to the Simply Good Foods Company fiscal fourth quarter, 2024 conference call at this time, all participant lines are in a listen-only mode, a brief question and answer session will follow the formal presentation.
If anyone should require assistance during the conference, please press star and zero on your telephone keypad.
As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Mark Bulgarian, Vice President of Investor Relations. Please go ahead, sir.
Thank you operator. Good morning. I'm pleased to welcome you to the Simply Good Foods Company fourth quarter earnings call note that fiscal Q4 and full year amounts reflect results for the '14 and 53 weeks ended. August 31 2024. Jeff 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
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