Simply Good Foods Co/the — Financial Results
Revenue Grew 9%, but Profits Fell as Costs Rose Faster
| Metric | FY2025 (52 weeks) | FY2024 (53 weeks) | Change |
|---|---|---|---|
| Net sales | $1,450.9M | $1,331.3M | +9.0% |
| Gross profit margin | 36.2% | 38.4% | -2.2 pts |
| Net income | $103.6M | $139.3M | -25.6% |
| Adjusted EBITDA | $278.2M | $269.1M | +3.4% |
Sales grew meaningfully, but it's worth noting that last year's comparison included an extra week of trading (53 weeks vs. 52), so the underlying growth is somewhat flattering. The real story is that costs grew faster than revenue — commodity (raw ingredient) expenses rose and the newly acquired OWYN brand carries lower margins — squeezing profit. Net income dropped by $35.7 million, though Adjusted EBITDA (a measure of operating profit before one-off items) still rose modestly by $9 million.
A $60.9 Million Write-Down Signals Trouble for the Atkins Brand
The company recorded a loss on impairment of $60.9 million against the Atkins brand's intangible assets (the accounting value assigned to the brand name itself). This happens when the company determines the brand is worth less than what it is carried for on the books. It's a non-cash charge, so it doesn't affect day-to-day operations, but it is a clear signal that management has meaningfully lowered its long-term expectations for Atkins.
Atkins Is Losing Retail Shelf Space, with More Cuts Coming
The Atkins brand is losing distribution at physical retail stores, and the company explicitly states this pressure will continue into fiscal 2026 and potentially beyond. Management's response is to redirect shelf space toward the stronger Quest and OWYN brands while focusing Atkins on its best-performing products. The e-commerce channel is growing for Atkins but has not been enough to offset the retail losses.
Quest and OWYN Are Driving the Growth
With Atkins declining, the company is leaning heavily on Quest and OWYN to carry the business. Both brands grew by volume during the year. OWYN, acquired in June 2024 for $280.2 million net, is now a meaningful contributor to sales, though it currently drags on overall margins. The strategy of replacing underperforming Atkins shelf space with Quest and OWYN products suggests the company is actively repositioning its portfolio.
Debt Is Being Paid Down, But $250 Million Is Due in March 2027
The company made $150 million in principal repayments on its Term Facility (a bank loan) during the year, reducing the outstanding balance to $250 million. That full balance matures in March 2027, meaning it will need to be refinanced or repaid within roughly 18 months. The company also refinanced the loan in January 2025 to secure a lower interest rate. With $98.5 million in cash on hand and $178.5 million generated from operations this year, the debt load appears manageable but worth watching.
The Board Refreshed Its Share Buyback Program
During the year, the company repurchased approximately 1.6 million shares at an average price of $31.95, spending about $50.9 million. With only $20.7 million remaining under the prior $150 million program, the Board approved a fresh $150 million addition in October 2025. Share buybacks reduce the number of shares outstanding, which can benefit existing shareholders over time.