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Investing.com -- Simply Good Foods Co. (NASDAQ:SMPL) reported better-than-expected second quarter earnings and reaffirmed its upbeat full-year outlook on Wednesday.
The company's shares soared 6.81% in premarket trading following the release.
The nutritional foods company posted adjusted earnings per share of $0.46 for the quarter ended March 1, beating analyst estimates of $0.41. Revenue came in at $359.7 million, up 15.2% YoY but below the consensus forecast of $354.55 million.
Simply Good Foods saw strong growth from its Quest brand, with retail sales up about 13% YoY. The recently acquired OWYN brand contributed $33.8 million in sales. However, Atkins brand retail sales declined approximately 10%.
"I am very pleased with our second quarter and first half results. We are executing well, adding new doors, winning with innovation, and driving brand awareness and household penetration of our brands," said CEO Geoff Tanner.
The company reaffirmed its fiscal 2025 outlook, projecting net sales growth of 8.5% to 10.5% and adjusted EBITDA growth of 4% to 6%. Management noted this guidance incorporates a 2 percentage point headwind from having one less week in fiscal 2025 compared to 2024.
Simply Good Foods ended the quarter with $103.7 million in cash and $300 million in outstanding debt. The company repaid $50 million of its term loan during Q2.