The Simply Good Foods Company (NASDAQ:SMPL) shares are trading higher in premarket on Wednesday after the second-quarter fiscal 2025 earnings.
The company, led by CEO Geoff Tanner, reported second-quarter FY25 sales growth of 15% year-on-year to $359.65 million. It beat the analyst consensus estimate of $354.4 million.
OWYN net sales contributed $33.8 million, or 10.8%, to reported net sales growth, while organic net sales grew 4.4%, driven by Quest.
Gross profit was $130.1 million, an 11.4% increase, and gross margin contracted 120 basis points year over year to 36.2%.
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Operating expenses rose 9.6% to $75.4 million. Operating margin was 15.2%.
Adjusted EBITDA increased 17.6% Y/Y to $68 million.
Net income of $36.7 million improved by 10.9% from $35.9 million last year. Adjusted EPS of 46 cents beat the consensus estimate of 40 cents.
The company generated $63.3 million in operating cash flow during the six-month period and ended the second quarter with cash and equivalents totaling $103.6 million.
Outlook Reaffirmed: SMPL continues to expect FY25 net sales to grow 8.5% to 10.5%.
Adjusted EBITDA is expected to increase 4% to 6%.
Price Action: SMPL shares traded higher by 3.04% at $34.20 in premarket at last check Wednesday.
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