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The Simply Good Foods Company (SMPL) has submitted its 10-Q filing for the quarterly period ended November 30, 2024.
The filing reports net sales of $341.3 million, an increase from $308.7 million in the same quarter the previous year. This growth is attributed to the acquisition of Only What You Need, Inc. (OWYN), which contributed to the company's North America net sales increase of 10.4%.
Cost of goods sold rose to $210.8 million from $193.6 million, primarily due to higher sales volumes and the acquisition-related inventory step-up charge, partially offset by lower ingredient and packaging costs.
Gross profit for the quarter was $130.5 million, up from $115.1 million, with a gross profit margin improvement to 38.2% from 37.3% in the previous year.
Operating expenses increased to $75.9 million from $63.3 million, driven by higher general and administrative costs, including integration expenses related to the OWYN acquisition.
Net income for the quarter was $38.1 million, compared to $35.6 million in the previous year, benefiting from increased gross profit and reduced income tax expenses.
Adjusted EBITDA was reported at $70.1 million, reflecting a 13.1% increase from $62.0 million in the previous year, primarily due to higher gross profit.
The company completed the OWYN acquisition for approximately $281.9 million, funded through a combination of cash on hand and incremental borrowings under the Term Facility.
The Simply Good Foods Company maintains a stock repurchase program with $71.5 million available for repurchases as of the end of the quarter.
The company reported cash and cash equivalents of $121.8 million and continues to manage its debt and credit facilities, with a Term Facility balance of $350.0 million due in March 2027.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the The Simply Good Foods Company quarterly 10-Q report dated January 8, 2025. To report an error, please email earnings@qz.com.