The Simply Good Foods Company has reinstated former CEO Joe Scalzo as its chief executive officer. Scalzo previously held the CEO position for six years until July 2023, when he was succeeded by Geoff Tanner and transitioned to the role of executive vice chairman for 13 months.
On January 20, the Quest brand owner announced Scalzo’s immediate return, emphasizing the goal of reigniting growth and enhancing profitability across the company. This decision reflects the organization’s commitment to navigating the food and beverage industry trends effectively, particularly in a dynamic market environment.
In the fiscal year ending August, Simply Good Foods achieved net sales of $1.45 billion, representing a 9% increase compared to the prior year. However, net income demonstrated a decline to $103.6 million, down from $139.3 million in the previous year.
Last week, the company reported a slight decline of 0.3% in first-quarter net sales, totaling $340.2 million, largely due to decreased revenue from its Atkins and Owyn products. Consequently, net income plummeted over a third to $25.3 million.
Chairman James Kilts remarked, “Joe is a visionary in our industry widely admired by our team and partners alike for his role as the key architect of the business over the course of the last decade. We are pleased to welcome him back as we embark on a new chapter of driving growth and creating value for our stockholders. We greatly appreciate Geoff’s contributions in helping Simply Good Foods navigate a dynamic operating environment while keeping the company positioned for success.”
Looking forward, the company forecasts a potential rise in net sales of 2% in its current financial year, although it also anticipates that sales may decline by the same percentage. Additionally, Simply Good Foods estimates that its annual adjusted EBITDA could increase by 1% at best, but it might also decrease by 4%.
Scalzo expressed enthusiasm about his return, stating, “I am energized to be returning home to Simply Good Foods at this critical moment. Together with our exceptional team, we have a clear view of the mission in front of us to secure Simply Good Foods’ leadership in innovation and product quality while ensuring best-in-class execution. I have tremendous belief in the proven power of this platform and in its potential to stay on the leading edge of the nutritional snacking landscape.”
As the food and drink business continues to evolve, Simply Good Foods aims to adapt and thrive amid changing food and drink consumer trends, reinforcing its position as a leader in the sector.
In conjunction with these developments, consider subscribing to our newsletter for daily insights to give your business an edge in the industry. Stay informed on the latest trends and developments that can shape your strategy in the food and beverage landscape.
