Simply Good Foods Company Reports Fiscal Third Quarter 2025 Financial Results

The Simply Good Foods Company, a developer, marketer, and seller of branded nutritional foods and snacking products, has released its financial results for the thirteen and thirty-nine weeks ended May 31, 2025. The report highlights the company's performance, including the impact of the acquisition of Only What You Need, Inc. (OWYN), which was completed on June 13, 2024.

Financial Highlights

For the third quarter of fiscal 2025, Simply Good Foods reported net sales of $381.0 million, a 13.8% increase from the previous year's $334.8 million. Net income slightly decreased to $41.1 million from $41.3 million, while earnings per diluted share (EPS) were $0.40 compared to $0.41 in the prior year. Adjusted diluted EPS rose to $0.51 from $0.50, and adjusted EBITDA increased by 2.8% to $73.9 million.

Business and Operational Highlights

The company's net sales growth was driven by a 10.0% contribution from OWYN, amounting to $33.6 million, and a 3.8% organic net sales growth. Retail takeaway for Simply Good Foods increased by about 3%, with Quest and OWYN showing strong growth of approximately 11% and 24%, respectively, while Atkins declined by about 13%.

Strategic Initiatives and Corporate Developments

During the quarter, Simply Good Foods repaid $50.0 million of its term loan debt, bringing the fiscal year-to-date repayments to $150.0 million. Since the OWYN acquisition, the company has repaid $240.0 million of the term loan balance. The company ended the third quarter with $98.0 million in cash and a term loan principal balance of $250.0 million.

Management's Perspective

Geoff Tanner, President and CEO of Simply Good Foods, expressed satisfaction with the company's continued momentum, highlighting the 14% increase in net sales and the double-digit consumption growth for both Quest and OWYN. Tanner acknowledged the pressure on Atkins but commended the teams for their resilience in a dynamic operating environment.

Future Outlook

Simply Good Foods has updated its fiscal year 2025 outlook, expecting net sales to increase by 8.5% to 9.5% and adjusted EBITDA to grow by 4% to 5%. The company anticipates OWYN net sales to reach $145 million, the midpoint of the previously provided range. The fifty-third week in fiscal year 2024 is expected to be a 2-percentage point headwind to both net sales and adjusted EBITDA growth in fiscal year 2025.

SEC Filing: Simply Good Foods Co [ SMPL ] - 8-K - Jul. 10, 2025