The Simply Good Foods Co (SMPL) Reports Solid Q4 and Full Fiscal Year 2023 Financial Results
Net sales for Q4 2023 reached $320.4 million, a significant increase from $274.2 million in the same period last year.
Net income for Q4 2023 was $36.6 million, up from $30.1 million in Q4 2022.
Full year fiscal 2024 outlook anticipates net sales growth at the high end of the company's long-term algorithm of 4-6%.
Adjusted EBITDA for Q4 2023 was $67.3 million, a substantial increase from $51.0 million in Q4 2022.
On October 24, 2023, The Simply Good Foods Co (NASDAQ:SMPL) released its financial results for the fourth quarter and full fiscal year 2023. Despite supply chain issues in the first half of the year, the company reported solid retail takeaway and net sales growth.
Financial Highlights
The Simply Good Foods Co (NASDAQ:SMPL) reported net sales of $320.4 million for Q4 2023, a significant increase from $274.2 million in Q4 2022. The company's net income also saw a substantial rise, reaching $36.6 million in Q4 2023, up from $30.1 million in the same period last year. Earnings per diluted share (EPS) for Q4 2023 were $0.36, compared to $0.30 in Q4 2022. The company's Adjusted EBITDA for Q4 2023 was $67.3 million, a substantial increase from $51.0 million in Q4 2022.
Company's Outlook
For the full fiscal year 2024, The Simply Good Foods Co (NASDAQ:SMPL) expects net sales growth to be at the high end of its 4-6% long-term algorithm, including the benefit of a fifty-third week. The company anticipates solid gross margin expansion during the year and plans to make meaningful investments in marketing and growth initiatives, as well as organizational capabilities. As a result, for the full year fiscal 2024, Adjusted EBITDA is expected to increase slightly higher than the net sales growth rate.
CEO's Commentary
Geoff Tanner, President and Chief Executive Officer of Simply Good Foods, commented on the company's performance, stating,
Fiscal 2023 was another successful year for our Company with solid retail takeaway and net sales growth. Despite supply chain issues in the first half of the year, our team remained focused and we ended the year strong."
He also expressed his confidence in the company's growth prospects and the long-term growth outlook of the nutritional snacking category.
Balance Sheet and Cash Flow
For the full fiscal year 2023, the company's cash flow from operations was $171.1 million, an increase of $60.5 million or 55%, compared to last year. In fiscal 2023, the company repaid $121.5 million of its term loan debt, and at the end of the year, the outstanding principal balance was $285.0 million. As of August 26, 2023, the company had cash of $87.7 million and a trailing twelve-month Net Debt to Adjusted EBITDA ratio of 0.8x.
This article first appeared on GuruFocus.
