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The Simply Good Foods Company (NASDAQ:SMPL) Q2 2024 Earnings Call Transcript

The Simply Good Foods Company (NASDAQ:SMPL) Q2 2024 Earnings Call Transcript April 4, 2024

The Simply Good Foods Company isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).

Operator: Greetings, and welcome to the Simply Good Foods Company Fiscal Second Quarter 2024 Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [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.

Mark Pogharian: Thank you, operator. Good morning. I'm pleased to welcome you to The Simply Good Foods Company earnings call for the fiscal second quarter ended February 24, 2024. Geoff 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 an earnings release this morning at approximately 07:00 A.M. Eastern Time. A copy of the release and accompanying presentation are available under the investor section on the company's website at www.thesimplygoodfoodscompany.com. This call is being webcast and an archive of today's remarks will also be available. During the course of today's call, management will make forward-looking statements that are subject to various risks and uncertainties that may cause actual results to differ materially.

A close up of a hand of a a child holding a freshly opened packet of the company's popular ready-to-drink shake.
A close up of a hand of a a child holding a freshly opened packet of the company's popular ready-to-drink shake.

The company undertakes no obligation to update these statements based on subsequent events. A detailed listing of such risks and uncertainties can be found in today's press release and the company's SEC filings. Note, that on today's call we will refer to certain non-GAAP financial measures that we believe will provide useful information for investors. Due to the company's asset-light strong cash flow business model, we evaluate our performance on an adjusted basis as it relates to EBITDA and diluted EPS. We have included a detailed reconciliation from GAAP to adjusted items in today's press release. We believe these adjusted measures are a key indicator of the underlining performance of the business. The presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP.

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Please refer to today's press release for reconciliation of the non-GAAP financial measures to the most comparable measures prepared in accordance with GAAP. I'll now turn the call over to Geoff Tanner, our President and CEO.

Geoff E. Tanner: Thank you Mark. Good morning. Thank you for joining us. Today I will recap Simply Good Foods financial results and the performance of our brand. Then Shaun will discuss our financial results in more detail before we wrap it up with a discussion of our fiscal 2024 outlook and your questions. Simply Good Foods second quarter results were led by continued Quest growth as well as strong gross margin improvement. Net sales increased 5.3%, driven by volume and due to the timing of shipments last quarter, outpaced retail takeaway of about 3%. Retail takeaway in measured channels was less than our expectations. E-commerce POS growth for both Quest and Atkins continued to be solid. Quest retail takeaway was on track with our plans driven by strong salty snacks growth while Atkins performance was off versus our estimates.

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To continue reading the Q&A session, please click here.