The Simply Good Foods Company, headquartered in Denver, Colorado, specializes in nutritional foods and snacks, primarily focusing on high-protein, low-sugar, and low-carb products. The company’s offerings include protein bars, ready-to-drink shakes, and snacks marketed under the Atkins, Quest, and OWYN brands.

For the first fiscal quarter of 2025, Simply Good Foods reported a net sales increase of 10.6% to $341.3 million, compared to $308.7 million in the prior year. This growth was driven by the inclusion of the OWYN acquisition, which contributed net sales of $32.3 million. The legacy net sales, excluding OWYN, remained stable at approximately $309 million, impacted by shipment timing delays that affected about 3 percentage points of growth.

The company’s net income reached $38.1 million, a 7.0% rise from $35.6 million in the same quarter last year. The reported earnings per diluted share were $0.38, compared to $0.35 in the previous year. Adjusted diluted earnings per share also increased, from $0.43 to $0.49.

The adjusted EBITDA for the quarter showed growth of 13.1%, amounting to $70.1 million, compared to $62.0 million during the first quarter of fiscal 2024. The gross profit was reported at $130.5 million, an increase of $15.4 million, resulting in a gross margin of 38.2%, an improvement of 90 basis points year-over-year.

Looking forward, Simply Good Foods reaffirmed its full-year outlook for fiscal 2025, projecting net sales growth between 8.5% and 10.5%. The anticipated net sales for OWYN are in the range of $135 million to $145 million. Adjusted EBITDA for the year is expected to grow by 4% to 6%, with the 53rd week in fiscal 2024 presenting an approximate 2 percentage point headwind for both net sales and adjusted EBITDA growth in fiscal 2025.

Cash flow from operations for the first quarter totaled approximately $32 million, down from $47.5 million in the previous year, primarily due to increased working capital related to the OWYN acquisition. The company ended the quarter with cash on hand of $121.8 million and repaid $50 million of its term loan debt, bringing the outstanding principal balance to $350 million.

Overall, Simply Good Foods appears to be in a stable condition with planned growth continuing for the fiscal year. The strategic acquisition of OWYN and the positioning of its brands suggest a commitment to maintaining relevance in the nutritional snack category driven by consumer trends.