On US stock charts on Thursday, The Simply Good Foods Company (NASDAQ: SMPL) shares showed a positive trend, closing the day at $42.69 up 7.83%. Following the announcement of its quarterly results, SMPL saw a positive sentiment resulting in share price rise.
The financial results of Simply Good Foods (SMPL) for the three months concluded on November 25, 2023, were released yesterday. The financial results of SMPL’s fiscal first quarter and its success in the market were both expected. Driven by volume growth, its retail takeout in the overall measured and unmeasured channels grew solidly and by slightly more than 8% in the initial quarter of fiscal 2024.
Retail takeout surpassed net sales increase of 2.6%, as anticipated, mostly as a result of shipments being made at a later date than the previous year in relation to “New Year, New You” at the store promotions. Quest volume gain was the primary driver of the net sales rise of $7.8 million, or 2.6%, to $308.7 million, more than offsetting Atkins decline.
The gross profit for the quarter was $115.1 million, up $4.1 million from the same time last year. The gross margin increased by 40 basis points to 37.3% from 36.9% in the previous year. Lower material and packaging-related expenses were the main cause of the increase in gross margin. In the similar period of fiscal 2023, SMPL’s net income was $35.9 million, whereas it was $35.6 million in the reported period.
In light of the positive beginning of the year, the company reiterated its expectation for the entire fiscal year 2024. The firm expected volume to drive sales growth, and it has solid plans for marketing and advertising, as well as merchandising, innovation, and promotions, all of which should result in long-term, favorable financial and commercial outcomes.
Furthermore, the firm expects lower supply chain expenditures in fiscal year 2024, which will result in a large improvement in its gross margin and allow it to make considerable investments in marketing, expansion, and new organizational capacity.
