Simply Good Foods Co (SMPL)

Gross profit margin

		Aug 31, 2024	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020
Gross profit	US$ in thousands	511,566	453,420	445,561	409,766	324,328
Revenue	US$ in thousands	1,331,320	1,242,670	1,168,680	1,005,610	816,641
Gross profit margin		38.43%	36.49%	38.13%	40.75%	39.71%

August 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $511,566K ÷ $1,331,320K
= 38.43%

The gross profit margin of Simply Good Foods Co has exhibited some fluctuations over the past five years. In the most recent fiscal year ending on August 31, 2024, the gross profit margin was 38.43%, representing an increase from the previous year's 36.49%. This improvement suggests that the company was able to effectively manage its production costs and pricing strategies to generate a higher percentage of profit from its revenue.

Comparing the gross profit margin to the earlier years, it can be observed that the margin was slightly lower at 38.13% in 2022 and significantly higher at 40.75% in 2021. The peak gross profit margin was recorded in 2021, reflecting strong profitability relative to the cost of goods sold. However, the margin dipped slightly in 2023 before recovering in 2024.

Despite the fluctuations in the gross profit margin, Simply Good Foods Co has generally maintained a healthy level of profitability over the years, as evidenced by all margins being above 35%. The company's ability to sustain a gross profit margin above 35% indicates efficient cost management and pricing strategies, which are essential for long-term financial sustainability and shareholder value creation.