Simply Good Foods Reports 15.2% Revenue Growth to $359.7 Million in Latest Quarter

The Simply Good Foods Company reported a significant increase in financial performance for the thirteen weeks ended March 1, 2025, with net sales reaching $359.7 million, a 15.2% rise from $312.2 million in the same period last year. This growth was primarily driven by the acquisition of Only What You Need, Inc. (OWYN) and increased sales volume from its Quest brand. Gross profit also increased to $130.1 million, although the gross margin decreased to 36.2% from 37.4% due to the lower margins associated with the OWYN business.

In terms of profitability, net income for the quarter was $36.7 million, up from $33.1 million a year earlier, reflecting a 3.6 million increase. The company’s operating expenses rose by 9.6% to $75.4 million, attributed to higher general and administrative costs, particularly related to the integration of OWYN. The increase in interest expense, which rose to $6.3 million from $5.6 million, was also a factor, driven by incremental borrowings associated with the acquisition.

The OWYN acquisition, completed on June 13, 2024, for approximately $280 million, has been a strategic move to expand Simply Good Foods' portfolio into the plant-based protein market. The integration of OWYN is expected to enhance the company's product offerings and market reach. During the quarter, OWYN contributed $33.8 million in net sales, indicating a successful initial integration into the company's operations.

Operationally, the company reported a decrease in cash and cash equivalents to $103.7 million as of March 1, 2025, down from $132.5 million at the end of the previous fiscal period. The decrease was primarily due to cash used in financing activities, including $100 million in principal payments on long-term debt. The company’s total liabilities decreased significantly to $609.4 million from $708.7 million, reflecting a reduction in long-term debt following the OWYN acquisition.

Looking ahead, Simply Good Foods anticipates continued growth driven by organic sales and the successful integration of OWYN. The company plans to invest in marketing and innovation to strengthen its brand presence in the nutritious snacking market. However, it remains cautious about potential macroeconomic challenges, including inflation and supply chain disruptions, which could impact future profitability. The company is committed to monitoring these factors closely and adjusting its strategies as necessary to maintain its growth trajectory.