The Denver-based Simply Good Foods Company (NASDAQ:SMPL) found its shares on the up-and-up on the release of quarterly figures. The company prides itself on being a developer, marketer and seller of branded nutritional snacking and meal replacement products.
Net sales increased 30.1%, or $32.2 million, over the same period last year, to $139.5 million. Gross profit margin of 46.8%, a decrease of 100 basis points. Gross profit was $65.3 million for the third quarter of 2019, an increase of $14.0 million or 27.3%.
SMPL also said net income increased 88.7%, or $6.3 million, to $13.5 million. Earnings per diluted share of $0.16 increased $0.06 from the same quarter last year. Adjusted EBITDA increased 38.8% to $24.9 million
CEO Joseph Scalzo said, "We’re pleased with our strong third quarter results and the continued business momentum.
"We delivered double-digit sales growth in both the third quarter and year-to-date periods driven by our successful marketing strategy that positions Atkins as the brand of choice for consumers seeking nutritious and delicious snacking and meal replacement products for low carb lifestyles. U.S. retail takeaway… continued to be strong and was up 19.5% versus the prior year.
"Gross profit and adjusted EBITDA growth also increased double-digits in both the third quarter and year-to-date periods reflecting the strong sales growth as well as investments in marketing and capabilities that we believe will benefit the Company in the near and long term."
Shares picked up 69 cents, or 2.8%, to $25.57.
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