Simply Good Foods reaffirms FY23 net sales up slightly greater than 4%-6%

Consensus $1.24B. The company said, “The Company has a portfolio of brands aligned with consumer mega-trends of both health and wellness, convenience and on-the-go nutrition. As such, despite the challenging economic environment, the Company believes it is well positioned to deliver on its objectives.” Therefore, the Company reaffirms its prior full year outlook and anticipates the following for the full fiscal year 2023: Net sales to increase slightly greater than the 4-6% long-term algorithm. Included in the sales outlook is a headwind of almost 1 percentage point related to the previously discussed agreement to license the Quest frozen pizza business; Gross margin will decline versus last year, although at a lower rate than fiscal 2022; Adjusted EBITDA to increase, but slightly less than the net sales growth rate; and, Adjusted Diluted EPS to increase less than the Adjusted EBITDA growth rate primarily due to higher interest expense from an increase in the variable interest rate related to its term loan debt.