SMPL - What to Expect When the Simply Good Foods Company Reports First-Quarter Earnings
The Simply Good Foods Company (NASDAQ: SMPL) has scheduled its fiscal first-quarter 2020 earnings report for Wednesday, Jan. 8 before the opening bell rings for trading. The wellness-themed snacks, shakes, meals, and confections distributor simply outperformed in 2019, booking a share price ascent of 51%. Let's zero in on key numbers and themes that investors should be familiar with before interpreting Simply's latest batch of results next week.
In 2019, Simply Good Foods increased net sales by nearly 21% to $523 million, with the small caveat that the year included 53 weeks, versus 52 weeks in fiscal 2018. This sterling double-digit improvement was propelled by vigorous retail takeaway, i.e., store purchases by consumers. The lion's share of the company's growth during the quarter was supplied by its well-known Atkins brand, which has evolved from a diet label to a wellness and lifestyle platform. During Simply's fourth-quarter 2019 earnings conference call, CEO Joe Scalzo observed that the Atkins brand has chalked up 11 consecutive years of retail takeaway growth at a compounded annual growth rate of 15%.
After a year of superlative expansion, management expects the top line to moderate next year. The company's fiscal 2020 outlook anticipates annual revenue improvement near the high end of its long-term growth goal of 4% to 6% (bearing in mind that fiscal 2020 will have one fewer week than fiscal 2019).