# The Simply Good Foods Company (SMPL) Reports Fiscal Third Quarter 2025 Results
## Summary:
– **Net Sales:**
– Net sales for the third quarter of 2025 were $381.0 million, showing a 13.8% increase from $334.8 million in the same quarter last year.
– Organic net sales grew by 3.8%, driven by Quest products, while OWYN contributed to 10.0% of the reported net sales growth.
– **Net Income:**
– Net income was $41.1 million, slightly down by 0.6% compared to $41.3 million in the same quarter a year ago.
– **Earnings per Share (EPS):**
– Earnings per diluted share were $0.40, a decrease from $0.41 in the comparable year-ago period.
– **Adjusted Metrics:**
– Adjusted diluted EPS was $0.51, an increase from $0.50 in the same quarter last year.
– Adjusted EBITDA was $73.9 million, up by 2.8% from $71.9 million in the same quarter a year ago.
– **Year-to-Date Performance:**
– Year-to-date net sales reached $1,081.9 million, increasing by 13.2% from the same period last year.
– Adjusted EBITDA for the year-to-date period was $211.9 million, rising by 10.6% from the comparable year-ago period.
– **Outlook for Fiscal Year 2025:**
– Net sales are expected to increase by 8.5% to 9.5% for the fiscal year.
– Adjusted EBITDA is projected to grow by 4% to 5% for the full fiscal year.
– The company anticipates approximately 3% organic net sales growth for the year.
## Dividend/Share Repurchase:
– The report did not mention if the company declared a quarterly dividend or any share repurchase.
## Metrics Highlight:
– Net Sales: Up by 13.8%
– Net Income: Slightly down by 0.6%
– Earnings per Share (EPS): Decreased from $0.41 to $0.40
– Adjusted Diluted EPS: Increased to $0.51 from $0.50
– Adjusted EBITDA: Grew by 2.8%
– Year-to-Date Net Sales Growth: 13.2%
– Year-to-Date Adjusted EBITDA Growth: 10.6%
The Simply Good Foods Company continues to show growth in net sales and adjusted metrics for the third quarter of 2025, with a positive outlook for the fiscal year. The company’s recent acquisition and focus on high-protein, low-sugar products position it well for continued success in the nutritional snacking category.
### Consolidated Balance Sheets
Amounts in thousands
| May 31, 2025 | August 31, 2024 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash | $98,008 | $132,530 |
| Accounts receivable, net | $152,580 | $150,721 |
| Inventories | $164,464 | $142,107 |
| Prepaid expenses | $7,313 | $5,730 |
| Other current assets | $14,574 | $9,192 |
| Total current assets | $436,939 | $440,280 |
| Long-term assets: | ||
| Property and equipment, net | $24,102 | $24,830 |
| Intangible assets, net | $1,325,953 | $1,336,466 |
| Goodwill | $589,974 | $591,687 |
| Other long-term assets | $53,420 | $42,881 |
| Total assets | $2,430,388 | $2,436,144 |
| Liabilities and stockholders’ equity | ||
| Current liabilities: | ||
| Accounts payable | $73,012 | $58,559 |
| Accrued interest | $44 | $265 |
| Accrued expenses and other current liabilities | $37,664 | $49,791 |
| Total current liabilities | $110,720 | $108,615 |
| Long-term liabilities: | ||
| Long-term debt, less current maturities | $248,920 | $397,485 |
| Deferred income taxes | $176,695 | $166,012 |
| Other long-term liabilities | $53,102 | $36,546 |
| Total liabilities | $589,437 | $708,658 |
| Stockholders’ equity: | ||
| Common stock | $1,036 | $1,025 |
| Treasury stock | -$102,789 | -$78,451 |
| Additional paid-in-capital | $1,342,011 | $1,319,686 |
| Retained earnings | $603,236 | $487,265 |
| Accumulated other comprehensive loss | -$2,543 | -$2,039 |
| Total stockholders’ equity | $1,840,951 | $1,727,486 |
| Total liabilities and stockholders’ equity | $2,430,388 | $2,436,144 |
### Consolidated Statements of Income and Comprehensive Income
Amounts in thousands
| Item | Thirteen Weeks Ended May 31, 2025 | May 25, 2024 | Thirty-Nine Weeks Ended May 31, 2025 | May 25, 2024 |
|---|---|---|---|---|
| Net sales | $380,956 | $334,757 | $1,081,879 | $955,634 |
| Cost of goods sold | $242,437 | $201,131 | $682,737 | $590,020 |
| Gross profit | $138,519 | $133,626 | $399,142 | $365,614 |
| Operating expenses: | ||||
| Selling and marketing | $33,799 | $36,464 | $101,871 | $103,097 |
| General and administrative | $41,229 | $31,543 | $115,306 | $88,426 |
| Depreciation and amortization | $4,171 | $4,142 | $12,479 | $12,711 |
| Business transaction costs | $0 | $2,703 | $820 | $2,703 |
| Total operating expenses | $79,199 | $74,852 | $230,476 | $206,937 |
| Income from operations | $59,320 | $58,774 | $168,666 | $158,677 |
| Other income (expense): | ||||
| Interest income | $673 | $881 | $2,150 | $2,895 |
| Interest expense | -$4,900 | -$5,028 | -$19,099 | -$16,658 |
| (Loss)/gain on foreign currency transactions | -$337 | -$12 | -$342 | $191 |
| Other income | -$14 | $102 | $20 | $108 |
| Total other income (expense) | -$4,578 | -$4,057 | -$17,271 | -$13,464 |
| Income before income taxes | $54,742 | $54,717 | $151,395 | $145,213 |
| Income tax expense | $13,640 | $13,383 | $35,424 | $35,195 |
| Net income | $41,102 | $41,334 | $115,971 | $110,018 |
| Comprehensive Income: | ||||
| Foreign currency translation adjustments | $309 | $95 | -$504 | $352 |
| Total Comprehensive Income | $41,411 | $41,429 | $115,467 | $110,370 |
| Earnings per Share: | ||||
| Basic EPS | $0.41 | $0.41 | $1.15 | $1.10 |
| Diluted EPS | $0.40 | $0.41 | $1.14 | $1.09 |
| Weighted average shares outstanding (Basic) | 100,923,690 | 100,024,230 | 100,787,087 | 99,852,203 |
| Weighted average shares outstanding (Diluted) | 101,635,521 | 101,270,163 | 101,669,998 | 101,240,471 |
