European Investor
09 Apr 2026, 16:02
Simply Good Foods Reports Q2 Loss, Cuts Outlook Amid Weak Demand and Impairment Charges
The Simply Good Foods Company reported weaker fiscal second-quarter 2026 results, posting net sales of $326.0 million, down 9.4% year-over-year, as declining demand across key brands weighed on performance.
The company recorded a net loss of $159.7 million, compared to net income of $36.7 million a year earlier, largely driven by a $249 million non-cash impairment charge related to the Atkins and OWYN brands. Adjusted EBITDA fell 18.4% to $55.5 million, while adjusted EPS remained broadly stable at $0.45.
Sales declines were led by significant drops in Atkins and OWYN, only partially offset by modest growth in the Quest brand. Margins were also pressured by higher input costs, particularly cocoa and tariffs.
Reflecting ongoing challenges, Simply Good Foods lowered its full-year 2026 outlook, forecasting revenue declines of 7% to 10% and weaker profitability. Management said it is implementing turnaround measures focused on cost structure improvements, clearer strategy execution, and increased marketing investment to rebuild demand.
The company acknowledged current performance falls short of expectations but expressed confidence in long-term category fundamentals and recovery potential.
Globe Newswire
The Simply Good Foods Company reported weaker fiscal second-quarter 2026 results, posting net sales of $326.0 million, down 9.4% year-over-year, as declining demand across key brands weighed on performance.
The company recorded a net loss of $159.7 million, compared to net income of $36.7 million a year earlier, largely driven by a $249 million non-cash impairment charge related to the Atkins and OWYN brands. Adjusted EBITDA fell 18.4% to $55.5 million, while adjusted EPS remained broadly stable at $0.45.
Sales declines were led by significant drops in Atkins and OWYN, only partially offset by modest growth in the Quest brand. Margins were also pressured by higher input costs, particularly cocoa and tariffs.
Reflecting ongoing challenges, Simply Good Foods lowered its full-year 2026 outlook, forecasting revenue declines of 7% to 10% and weaker profitability. Management said it is implementing turnaround measures focused on cost structure improvements, clearer strategy execution, and increased marketing investment to rebuild demand.
The company acknowledged current performance falls short of expectations but expressed confidence in long-term category fundamentals and recovery potential.
Globe Newswire