Simply Good Foods (SMPL) 2021 Q3 Earnings Report in Focus

Simply Good Foods Co (NASDAQ:SMPL) was formed as a result of a merger between a special purpose acquisition company (SPAC) and branded nutritional food manufacturer Atkins in July 2017. Simply Good Foods’ portfolio primarily comprises nutrition bars, shakes, snacks, and confectionery products sold under different brand names such as Atkins and Quest. The company says that its vision is to lead the nutritional snacking movement with products that offer optimal nutrition to everyone (see biggest food companies in the world).

The Colorado-based nutritional foods producer recently announced its financial results for the third quarter. SMPL reported earnings of 6 cents per share for the three months ended May 29, below 17 cents per share in the comparable period of 2020. However, its adjusted earnings of 43 cents per share were better than 26 cents per share in the year-ago quarter.

Revenue for the quarter rose 32 percent on a year-over-year basis to $68.9 million. Analysts, on average, were expecting SMPL to report earnings of 29 cents per share on revenue of $244.29 million.

CEO Joseph Scalzo expressed his satisfaction with the results. He said in a statement, “Our results were solid across all forms, although the resurgence of bars was greater than our expectations. As we have previously stated, there is a high correlation of mobility to the consumption of our brands. As shopper traffic within brick and mortar retailers, particularly in the mass and convenience store channels improved, our business, particularly bars, improved as well. The diversification of our portfolio across forms, customers and retail channels demonstrates the advantages of our business model and multiple ways for us to win in the marketplace.”

Simply Good Foods also updated its financial outlook for fiscal 2021. It expects adjusted earnings in the range of $1.20 per share to $1.25 per share and revenue between $995 million and $1.01 billion for the full year.