Simply Good Foods Reports 13.8% Revenue Growth to $380.96 Million for Thirteen Weeks Ended May 31, 2025

The Simply Good Foods Company reported a significant increase in financial performance for the thirteen weeks ended May 31, 2025, with net sales reaching $380.96 million, a 13.8% rise from $334.76 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 the Quest brand, which offset a decline in the Atkins brand. Gross profit for the quarter was $138.52 million, reflecting a 3.7% increase, although the gross margin decreased to 36.4% from 39.9% due to higher commodity costs and the lower margins associated with the OWYN business.

For the thirty-nine weeks ended May 31, 2025, Simply Good Foods reported net sales of $1.08 billion, up 13.2% from $955.63 million in the prior year. The cost of goods sold also increased, totaling $682.74 million, which was a 15.7% rise attributed to higher sales volumes and an inventory step-up charge related to the OWYN acquisition. The company’s net income for this period was $115.97 million, an increase of $5.95 million compared to $110.02 million in the previous year, supported by higher gross profit and operational income.

Strategically, the company completed the OWYN acquisition on June 13, 2024, for approximately $280 million, enhancing its portfolio in the plant-based protein segment. This acquisition was financed through a combination of cash and borrowings under its existing credit facility. The integration of OWYN is expected to bolster Simply Good Foods' market position in the nutritious snacking sector, which includes brands like Quest and Atkins. The company has also initiated a stock repurchase program, repurchasing 693,375 shares at an average price of $35.10 per share during the reporting period.

Operationally, the company has seen a shift in its expense structure, with total operating expenses increasing to $230.48 million for the thirty-nine weeks ended May 31, 2025, compared to $206.94 million in the prior year. This increase was driven by higher general and administrative expenses, which rose by 30.4% due to integration costs associated with the OWYN acquisition. The company’s employee headcount and engagement metrics have not been disclosed, but the focus on integrating OWYN suggests a strategic emphasis on enhancing operational efficiencies.

Looking ahead, Simply Good Foods anticipates continued growth driven by organic sales and the successful integration of OWYN. The company is closely monitoring macroeconomic factors, including inflation and supply chain challenges, which could impact profitability. Management remains optimistic about leveraging its expanded product offerings and marketing strategies to achieve its growth objectives in the upcoming fiscal year.