Simply Good Foods Co. SMPL said Thursday it had net income of $35.9 million, or 36 cents a share, in its fiscal first quarter through Nov. 26, up from $21.2 million, or 22 cents a share, in the year-earlier period. Adjusted per-share earnings came to 42 cents, a penny ahead of the 41 cent FactSet consensus. Sales rose 7% to $300.9 million, while FactSet was calling for $301.0 million. The Denver, Co.-based provider of branded nutritional foods and snacks said retail takeaway rose abut 14% in the quarter. “Ingredient and packaging cost inflation, as well as trade investment, was largely in line with expectations,” CEO Joseph E. Scalzo said in a statement. “However, logistics and contract manufacturer costs were greater than estimates. While early, we are seeing signs of an improving outlook related to ingredient and packaging costs in the second half of fiscal year 2023, as such, there is no change to our full year fiscal 2023 gross margin outlook.” The company still expects full-year sales to rise more than its long0term algorithm of 4% to 6%. The stock was down 1.7% premarket.
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