Simply Good Foods Reports Strong Q2 Results and Reaffirms 2025 Outlook

The Simply Good Foods Company posted solid financial results for its fiscal second quarter ended March 1, 2025. Net sales rose 15.2% year-over-year to $359.7 million, driven primarily by the acquisition of Only What You Need (OWYN), which contributed $33.8 million to sales. Organic net sales grew 4.4%, with Quest showing strong performance, while Atkins sales declined.

Net income increased 10.9% to $36.7 million, and adjusted EBITDA grew 17.6% to $68.0 million. Adjusted diluted EPS was $0.46, up from $0.40 a year earlier. The company maintained strong cash management, repaying $100 million in term loan debt during the year-to-date period and ending the quarter with $103.7 million in cash.

For the first half of fiscal 2025, net sales totaled $700.9 million, up 12.9% from the previous year. Adjusted EBITDA rose to $138.1 million, while adjusted diluted EPS increased to $0.95 from $0.82.

The company reaffirmed its fiscal 2025 outlook, expecting net sales growth between 8.5% and 10.5% and adjusted EBITDA growth between 4% and 6%. The OWYN brand is projected to contribute $140–$150 million in sales for the year. Simply Good Foods continues to position itself as a leader in the high-protein, low-sugar, low-carb food and beverage category.

Simply Good Foods Company announced that its subsidiary, Simply Good Foods USA, Inc., has entered into a Repricing Amendment to its existing Credit Agreement, originally dated July 7, 2017. The amendment, executed on January 31, 2025, primarily reduces interest rates on outstanding Initial Term Loans. Specifically, SOFR-based loans will see a rate reduction from 2.50% to 2.00%, while ABR-based loans will be reduced from 1.50% to 1.00%. Additionally, the amendment removes the credit spread adjustment previously applied to SOFR loans and resets the prepayment premium period for Repricing Transactions to six months following the amendment’s effective date.

The amendment was made in coordination with Barclays Bank PLC, acting as the administrative agent, and several participating lenders. This adjustment is expected to lower borrowing costs for the company and improve financial flexibility.

A copy of the full amendment is attached as Exhibit 10.1 to the SEC filing. The changes outlined in the amendment are also incorporated into the company’s disclosure regarding financial obligations under Item 2.03 of the report.

The Simply Good Foods Company announced that its Chief Financial Officer, Shaun P. Mara, will retire on July 3, 2025. He will be succeeded by Christopher J. Bealer, who will join as Senior Vice President of Finance on April 1, 2025. Bealer brings extensive experience from leadership roles at Reckitt Benckiser, Whirlpool, and other major companies.

At its annual meeting on January 23, 2025, the company elected 11 directors, ratified Deloitte & Touche LLP as its independent auditor for fiscal year 2025, and approved an advisory vote on executive compensation. The election results showed strong support for most board members, with Clayton C. Daley, Jr. and Romitha S. Mally receiving the highest votes.