The Simply Good Foods Company: Initiation Of Coverage – Atkins Revitalization Plan, Quest Brand Growth

The Simply Good Foods Company achieved financial results that were in line with their estimates for the fiscal first quarter that ended on November 25, 2023. The company reported an increase in its net sales by 2.6% to $308.7 million, propelled by the continuous momentum from its Quest range. The 40-basis point increase in the gross margin, which improved to 37.3%, was attributed mainly to lower ingredient and packaging costs. The adjusted EBITDA saw a rise of 2% when compared to the previous year, reaching $62 million. A higher gross profit partially offset the increase in SG&A over the previous year, indicative of the company’s investment in marketing growth initiatives and G&A capabilities.