Simply Good Foods Co (SMPL) 2023 Q4 法說會逐字稿

Greetings, and welcome to The Simply Good Foods Company Fiscal Fourth Quarter 2023 Conference Call.(Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 Simply Good Foods Company 2023 財年第四季電話會議。（操作員說明）謹此提醒，本次會議正在錄製中。

I would now like to turn the conference over to your host, Mr. Mark Pogharian, Vice President, Investor Relations for Simply Good Foods Company. Thank you. You may begin.

現在我想將會議交給東道主、Simply Good Foods 公司投資者關係副總裁 Mark Pogharian 先生。謝謝。你可以開始了。

Thank you, Operator. Good morning. I'm pleased to welcome you to The Simply Good Foods Company Earnings Call for the Fiscal Fourth Quarter and Full Year ended August 26, 2023. Geoff Tanner, President and CEO; and Shaun Mara, CFO, will provide you with an overview of the results, which will then be followed by a Q&A session.

謝謝你，接線生。早安.我很高興歡迎您參加 Simply Good Foods 公司截至 2023 年 8 月 26 日的第四財季和全年收益電話會議。Geoff Tanner，總裁兼執行長；財務長 Shaun Mara 將為您提供結果概述，然後進行問答環節。

The company issued its earnings release this morning at approximately 7:00 a.m. Eastern. A copy of the release and accompanying presentation are available under the Investors section of the company's website at www.thesimplygoodfoodscompany.com. This call is being webcast and an archive of today's remarks will also be available.

該公司於今天早上東部時間上午 7 點左右發布了財報。新聞稿和隨附簡報的副本可在該公司網站 www.thesimplygoodfoodscompany.com 的投資者部分取得。這次電話會議正在網路直播，今天的演講檔案也將提供。

During the course of today's call, management will make forward-looking statements that are subject to various risks and uncertainties that may cause actual results to differ materially. The company undertakes no obligation to update these statements based on subsequent events. A detailed list of such risks and uncertainties can be found in today's press release and the company's SEC filings.

在今天的電話會議期間，管理層將做出前瞻性聲明，這些聲明受到各種風險和不確定性的影響，可能導致實際結果出現重大差異。本公司不承擔根據後續事件更新這些聲明的義務。此類風險和不確定性的詳細清單可以在今天的新聞稿和公司向 SEC 提交的文件中找到。

Note that on today's call, we will refer to certain non-GAAP financial measures that we believe will provide useful information for investors. Due to the company's asset-light strong cash flow business model, we evaluate our performance on an adjusted basis as it relates to EBITDA and diluted EPS. We have included a detailed reconciliation from GAAP to adjusted items in today's press release. We believe these adjusted measures are a key indicator of the underlying performance of the business.

請注意，在今天的電話會議上，我們將提及某些非公認會計準則財務指標，我們相信這些指標將為投資者提供有用的信息。由於公司輕資產、現金流強勁的業務模式，我們在調整後的基礎上評估我們的業績，因為它與 EBITDA 和稀釋每股收益相關。我們在今天的新聞稿中包含了 GAAP 與調整項目的詳細調整。我們相信這些調整後的指標是業務基本績效的關鍵指標。

The presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. Please refer to today's press release for a reconciliation of the non-GAAP financial measures to the most comparable measures prepared in accordance with GAAP.

此資訊的呈現不應被孤立地考慮或作為根據 GAAP 呈現的財務資訊的替代品。請參閱今天的新聞稿，以了解非公認會計原則財務指標與根據公認會計原則編制的最具可比較指標的調節表。

With that, I'll now turn the call over to Geoff Tanner.

現在，我將把電話轉給傑夫·坦納 (Geoff Tanner)。

Thank you, Mark. Good morning. Thank you for joining us. Today, I will recap Simply Good Foods' financial results and the performance of our brands. Then Shaun will discuss our financial results in more detail before we wrap it up with a discussion of our fiscal 2024 outlook and take your questions.

謝謝你，馬克。早安.感謝您加入我們。今天，我將回顧 Simply Good Foods 的財務表現和我們品牌的表現。然後，肖恩將更詳細地討論我們的財務業績，然後我們將討論 2024 財年展望並回答大家的問題。

We ended the year with strong Q4 net sales growth of about 17%. As expected, net sales outpaced retail takeaway due to the retail customer drawdown last year. Gross margin was slightly greater than our expectations, primarily due to lower supply chain costs. Full year fiscal 2023 organic net sales increased nearly 7%. This performance reflects our diversified portfolio across brands, retail channels, customers and product forms. We believe we exited the year with trade inventory at normal levels. Gross margin improved during the year, and we expect to build on this momentum in fiscal 2024.

我們第四季淨銷售額強勁成長約 17%，結束了這一年。正如預期的那樣，由於去年零售客戶減少，淨銷售額超過了零售外賣。毛利率略高於我們的預期，主要是由於供應鏈成本較低。 2023 財年全年有機淨銷售額成長近 7%。這項業績反映了我們在品牌、零售通路、客戶和產品形式方面的多元化投資組合。我們相信今年結束時貿易庫存處於正常水準。今年毛利率有所改善，我們預計 2024 財年將延續這股動能。

In my nearly 7 months tenure at the company, I'm even more convinced of the long-term growth outlook of the nutritional snacking category and our business. Category growth in Q4 and the year was 15% and 17%, respectively. With low household penetration of about 50% versus legacy U.S. snacks at 90% plus, coupled with the twin tailwinds of snacking and health and wellness, we believe the category will continue to maintain its multiyear growth trajectory and outperform U.S. packaged foods and snacks.

在公司近7個月的任職期間，我更加堅信營養零食品類和我們業務的長期成長前景。第四季和全年品類成長分別為 15% 和 17%。由於美國傳統零食的家庭滲透率較低，約為50%，而美國傳統零食的滲透率高達90% 以上，再加上零食和健康保健的雙重推動力，我們相信該類別將繼續保持其多年增長軌跡，並超越美國包裝食品和零食。

As the preeminent category leader and category adviser for the majority of our customers, we will continue to invest in our brands and partner with retailers to accelerate category growth. I think over time this category will be twice its current size. I don't have the exact sequence of pacing but the opportunity is there.

作為大多數客戶的卓越品類領導者和品類顧問，我們將繼續投資我們的品牌並與零售商合作，以加速品類成長。我認為隨著時間的推移，這個類別的規模將是目前的兩倍。我沒有確切的節奏順序，但機會就在那裡。

Total Simply Good Foods combined measured and unmeasured channel U.S. retail takeaway growth in Q4 and the year was about 11% and 13%, respectively. In fiscal 2023, POS for Quest and Atkins increased 24% and 1%. Atkins retail takeaway slowed in the second half of the year and was off about 3%. Atkins performance is currently below our expectations and well below its full potential, which is why a comprehensive revitalization plan has been deployed to stabilize the brand and return it to growth. More on this in a bit.

Total Simply Good Foods 合併後的美國零售外送通路第四季和全年零售外送成長率分別約為 11% 和 13%。 2023 財年，Quest 和 Atkins 的 POS 成長了 24% 和 1%。阿特金斯零售外送業務下半年放緩，下滑約 3%。阿特金斯目前的表現低於我們的預期，也遠低於其全部潛力，這就是為什麼我們部署了全面的振興計劃來穩定品牌並使其恢復成長。稍後會詳細介紹這一點。

As we look to fiscal 2024, we're excited about the prospect Sales category and our business. We're making investments in brand building and growth initiatives as well as investments to enhance capabilities that accelerate growth. In fiscal 2024, net sales growth will be driven by volume as we've lapped the pricing actions of the prior year. Specifically, we expect net sales to increase at the high end of our 4% to 6% long-term algorithm, including the benefit of a 53rd week.

展望 2024 財年，我們對潛在的銷售類別和我們的業務感到興奮。我們正在對品牌建立和成長計劃以及增強加速成長的能力進行投資。 2024 財年，淨銷售額成長將由銷售驅動，因為我們已經遵循了去年的定價行動。具體來說，我們預計淨銷售額將在長期演算法的高端增加 4% 至 6%，其中包括第 53 週的收益。

Gross margin expansion should be solid, supporting the aforementioned investments and an increase of adjusted EBITDA slightly higher than the net sales growth rate. In addition, our advantaged business model results in strong cash flow generation and provides us with the financial flexibility to pursue value-enhancing acquisitions, pay down debt or opportunistically buy back our shares. We're confident in the strength of our business and our diversified portfolio across brands, products and channels. The investments that we've made and will continue to make in the business will enable us to deliver on our net sales and earnings objectives.

毛利率擴張應該是穩健的，支持上述投資以及調整後 EBITDA 的成長略高於淨銷售額成長率。此外，我們優勢的商業模式帶來了強勁的現金流產生，並為我們提供了財務靈活性，以進行增值收購、償還債務或機會性地回購我們的股票。我們對我們的業務實力以及跨品牌、產品和通路的多元化投資組合充滿信心。我們已經並將繼續對該業務進行的投資將使我們能夠實現淨銷售額和獲利目標。

The next slide provides you with the full year perspective of retail takeaway in the IRI MULO + C-store universe and in the combined measured and unmeasured channels. Similar to the last few quarters and years, total unmeasured channels growth driven by e-commerce with additive to total company POS.

下一張投影片為您提供了 IRI MULO + 便利商店領域以及已測量和未測量組合通路中零售外送的全年前景。與過去幾季和幾年類似，電子商務推動了不可衡量的通路總量成長，並增加了公司 POS 總量。

Let me now turn to Quest performance, where retail takeaway was strong and consistent during the year. Q4 and full year retail takeaway growth in measured and unmeasured channels were similar about 24%. What I like is how balanced the growth profile continues to be on the brand, balanced across product forms and retail channels, balanced across key drivers namely distribution, base velocity and innovation and balanced across household penetration and buy rate. More consumers buying more products in more stores. In my experience, when you rely on 1 or 2 drivers, they can tap out. The balanced growth profile on Quest, however, points to a long and sustained runway for growth.

現在讓我談談 Quest 的業績，全年零售外送強勁且穩定。第四季和全年零售外送在可測量和不可測量通路的成長相似，約 24%。我喜歡的是品牌的成長狀況持續保持平衡，在產品形式和零售通路之間保持平衡，在分銷、基本速度和創新等關鍵驅動因素之間保持平衡，在家庭滲透率和購買率之間保持平衡。更多的消費者在更多的商店購買更多的產品。根據我的經驗，當您依賴 1 或 2 個司機時，他們可以退出。然而，Quest 的平衡成長狀況顯示了一個長期且持續的成長跑道。

In Q4, IRI MULO + C-store POS growth was 26%, driven by volume, a 22 percentage point contribution, reflecting solid distribution gains and new product performance during the year and price that was about a 4 percentage point benefit. Measured channel Q4 POS growth of bars and snacks were similar, up about 25%. Gains were driven by distribution, base velocity and new product success. Salty snacks were particularly strong with POS growth of about 40% proving the ability of Quest to expand beyond the core and create new incremental segments in the category.

第四季度，IRI MULO + 便利商店POS 成長了26%，這主要得益於銷售的推動，貢獻了22 個百分點，反映了年內穩健的分銷收益和新產品表現，以及價格帶來的約4 個百分點的收益。測得的酒吧和零食通路第四季 POS 成長率類似，成長約 25%。收益是由分銷、基本速度和新產品成功推動的。鹹味零食表現尤其強勁，POS 成長約 40%，證明 Quest 有能力超越核心業務並在該類別中創建新的增量細分市場。

In Q4, we estimate total unmeasured channel retail takeaway increased about 15%. E-commerce growth of approximately 18% was partially offset by softness in specialty channels. In fiscal 2024, we project that Quest will have another strong year, driven by volume growth. We're making investments in the brand that will continue to result in near- and long-term growth across retail channels and forms. A particular focus will be investments in marketing. Despite the size of the business, household penetration is only 15%.

第四季度，我們估計未測通路零售外送總額成長約 15%。電子商務約 18% 的成長被專業通路的疲軟部分抵消。在銷售成長的推動下，我們預計 2024 財年 Quest 將迎來另一個強勁的一年。我們正在對該品牌進行投資，這將繼續帶來零售通路和形式的近期和長期成長。特別關注的是行銷投資。儘管業務規模龐大，但家庭滲透率僅為 15%。

During the year, we will debut a new marketing campaign and a higher reach-based media plan that we believe will drive greater awareness and household penetration. Additionally, we're partnering closely with retailers who view Quest as the leader and pioneer of the nutritional snacking category. They're excited about the investments we're making in the brand as well as the innovation pipeline we've shared with them. This should continue to drive distribution gains related to annual shelf resets.

今年，我們將推出新的行銷活動和更高覆蓋範圍的媒體計劃，我們相信這將提高知名度和家庭滲透率。此外，我們也與將 Quest 視為營養零食類別的領導者和先驅的零售商密切合作。他們對我們對該品牌的投資以及我們與他們分享的創新管道感到興奮。這應該會繼續推動與年度貨架重置相關的分銷收益。

Before getting into detail of the Atkins pre vitalization plan, let me provide you with a quick overview of Q4 performance. Q4 retail takeaway and the combined measured and unmeasured channels was off 4%. Clearly, we're not happy with the performance of the business, which we believe is well short of its full potential. As has been the case all year, several users of the product are leveraging the convenience of e-commerce. As a result, Amazon has been additive to Atkins measured channel POS. Q4 retail takeaway in this channel increased 12% with solid bars and shakes performance that were up 11% and 16%, respectively.

在詳細介紹阿特金斯預活力計畫之前，讓我先向您簡要介紹一下第四季的表現。第四季零售外賣以及已測量和未測量管道的綜合銷售額下降了 4%。顯然，我們對該業務的表現並不滿意，我們認為該業務遠未充分發揮其潛力。與全年的情況一樣，該產品的一些用戶正在利用電子商務的便利性。因此，亞馬遜已成為阿特金斯測量通路 POS 的補充。該通路的第四季零售外賣量成長了 12%，棒狀食品和奶昔表現強勁，分別成長了 11% 和 16%。

In the IRI MULO + C-store universe, Q4 retail takeaway was off 5.6%. Although ready-to-drink shakes performance as well as POS at our largest mass retail customer are positive. To stabilize the brand and get it through its full potential, we've developed a comprehensive revitalization plan, and I'll share this with you in the coming slides. Over the past several months, we've conducted consumer research on the Atkins brand to inform revitalization efforts. The work strongly reaffirmed our belief of the high potential of the brand. What we heard is that 80% of consumers are looking to maintain all this weight and the Atkins is distinctly and uniquely positioned as the most trusted leader in low carb, low sugar solution.

在 IRI MULO + 便利商店領域，第四季度零售外送下降了 5.6%。儘管即飲奶昔的表現以及我們最大的大眾零售客戶的 POS 表現都是正面的。為了穩定品牌並充分發揮其潛力，我們制定了一項全面的振興計劃，我將在接下來的幻燈片中與您分享。在過去的幾個月裡，我們對阿特金斯品牌進行了消費者研究，為振興工作提供資訊。這項工作強烈重申了我們對該品牌巨大潛力的信念。據我們所知，80% 的消費者希望維持這樣的體重，而阿特金斯有著獨特的定位，是低碳水化合物、低糖解決方案中最值得信賴的領導者。

In addition, when consumers try our products, they are pleased and delighted. The research suggests there is clearly significant potential for the brand. Similar to some of the things we've developed over the last year, I will also identify some opportunities we need to address. Specifically, strengthening innovation, addressing executional misses at some retail customers and enhancing and modernizing the brand experience and perception.

此外，當消費者嘗試我們的產品時，他們感到高興和高興。研究表明該品牌顯然具有巨大的潛力。與我們去年開發的一些東西類似，我還將確定一些我們需要解決的機會。具體來說，加強創新，解決一些零售客戶的執行失誤問題，並增強和現代化品牌體驗和認知。

Starting with innovation, we clearly dropped the ball on innovation, particularly snack bars and Endulge confection. Innovation, variety and new news is a critical driver of the business, especially in the bar segment. We fell short, and that resulted in distribution losses.

從創新開始，我們顯然在創新上失敗了，特別是零食棒和 Endulge 糖果。創新、品種和新消息是業務的關鍵驅動力，尤其是在酒吧領域。我們沒有達到要求，這導致了分銷損失。

Second, we had some executional missteps with a few key customers that resulted in suboptimal assortments and price points. Third, we heard that some potential consumers don't understand the benefits of the product or a skeptical to Atkins as a delicious and easy way to maintain or lose weight.

其次，我們在一些關鍵客戶方面出現了一些執行失誤，導致品種和價格點不理想。第三，我們聽說一些潛在消費者不了解該產品的好處，或者對阿特金斯作為一種美味且簡單的維持或減肥方法持懷疑態度。

Let's move to the next slide and tell you what we're doing to address these issues, which I really view as opportunities. To address our innovation gap, we have quickly accelerated some new items to market to bring variety and new news to the brand. In the second half of fiscal 2024, we expect that we'll have even more meaningful innovation. Importantly, we've enhanced our efforts to build a robust multiyear pipeline. We're also working on product upgrades to deliver a better taste experience. Consumers like the products that we've identified an opportunity to deliver a superior taste experience. In some cases, this may also reduce cost and provide greater shelf life.

讓我們轉到下一張投影片，告訴您我們正在採取哪些措施來解決這些問題，我確實認為這是機會。為了解決我們的創新差距，我們迅速加快了一些新產品的上市速度，為品牌帶來多樣性和新消息。在 2024 財年下半年，我們預計將有更有意義的創新。重要的是，我們加強了建立強大的多年管道的努力。我們也致力於產品升級，以提供更好的味覺體驗。消費者喜歡我們認為有機會提供卓越口味體驗的產品。在某些情況下，這還可以降低成本並提供更長的保質期。

To address gaps to key customers, our plan includes optimizing assortment and getting to the right price points. An example of this is our recent transition from variety packs to straight pack in the club channel and hitting a key price point in that channel. Additionally, we're doubling down at customers where we have strong momentum. For example, Amazon has been additive to Atkins measure channel POS and we will continue to invest with them and other winning customers to accelerate growth.

為了解決與主要客戶的差距，我們的計劃包括優化品種和達到合適的價格點。一個例子是我們最近在俱樂部管道中從多種包裝過渡到直接包裝，並在該管道中達到了關鍵價格點。此外，我們正在加倍努力爭取勢頭強勁的客戶。例如，亞馬遜已經成為阿特金斯測量通路 POS 的補充，我們將繼續與他們和其他獲勝客戶一起投資，以加速成長。

And to improve brand perception, a comprehensive advertising and marketing plan is underway to enhance Atkins' overall appeal and relevance with the goal of continuing to bring new users to the business. As we indicated last quarter, we believe the GLP class of weight-loss drug will be a tailwind for our business. As a strong proponent of weight wellness, we're excited consumers have another option to help with what can be a difficult struggle. We recently conducted our own proprietary research of consumers on the drug. The research showed our products are a perfect complement for consumers to when they're on the drug, on smaller and more nutritious options.

為了提高品牌認知度，我們正在實施一項全面的廣告和行銷計劃，以增強阿特金斯的整體吸引力和相關性，以繼續為該業務帶來新用戶。正如我們上季度所表示的那樣，我們相信 GLP 類減肥藥將成為我們業務的推動力。作為體重健康的堅定支持者，我們很高興消費者有另一個選擇來幫助應對這場艱難的鬥爭。我們最近對消費者對該藥物進行了專有研究。研究表明，我們的產品是消費者服用藥物、更小、更有營養的選擇時的完美補充。

Furthermore, our research suggests the majority of GLP users want to eventually come off the drug. What we found is that our products are a perfect offering when they do as a way to hold on to the physical and emotional benefits of the weight loss. Importantly, being mindful of privacy goals, we are working with several external partners to build a sizable addressable audience of consumers to what they're interested in or on the drug to whom we will deliver targeted communication, brand messaging and offers about how our products can be used as suppressor companion and/or off-ramp. We expect to be in the market with this campaign later in the fiscal year.

此外，我們的研究表明，大多數 GLP 使用者希望最終戒掉這種藥物。我們發現，當我們的產品作為保持減肥帶來的身體和情感益處的一種方式時，它們是一個完美的產品。重要的是，考慮到隱私目標，我們正在與幾個外部合作夥伴合作，建立一個相當大的目標消費者受眾群體，了解他們對什麼或對藥物感興趣，我們將向他們提供有針對性的溝通、品牌資訊和有關我們產品如何使用的優惠可用作抑制器伴侶和/或出口匝道。我們預計將在本財年稍後推出這項活動。

Lastly, we're working on a packaging refresh project that will modernize the brand and make it easier to shop. The goal of the revitalization plan is to first stabilize marketplace performance and then deliver the brand to its full potential. To execute this plan with excellence and a sense of urgency, we've established a new leadership team and structure. We have a very strong and experienced team and are confident in them and our collective ability to reshape the strategy and growth trajectory of the brand.

最後，我們正在進行一個包裝更新項目，該項目將使品牌現代化並使購物變得更容易。振興計畫的目標是先穩定市場表現，然後充分發揮品牌潛力。為了以卓越和緊迫感執行這項計劃，我們建立了新的領導團隊和結構。我們擁有一支非常強大且經驗豐富的團隊，並對他們以及我們重塑品牌策略和成長軌蹟的集體能力充滿信心。

I'll not spend a lot of time here, but on this slide, you'll see some of the accelerated innovation currently making its way into the marketplace and the refinement and optimized pack types in the club and e-commerce channels. We are a category adviser at most retailers, and we'll continue to work with them to ensure our product is optimally positioned on the shelf.

我不會在這裡花太多時間，但在這張投影片上，您將看到一些目前正在進入市場的加速創新，以及俱樂部和電子商務管道中的細化和優化的包裝類型。我們是大多數零售商的品類顧問，我們將繼續與他們合作，確保我們的產品在貨架上處於最佳位置。

I want to close the update on the revitalization plan with some additional perspective on the new advertising and marketing campaigns. The campaign addresses feedback that some potential new buyers are unaware or skeptical of the brand benefits to how delicious the products take, entitled the Who Knew campaign, it gives voice to the skeptics as well as our core existing consumers, reinforcing that you can eat and enjoy these delicious products and maintain or lose weight.

我想以對新的廣告和行銷活動的一些額外觀點來結束振興計劃的更新。該活動針對一些潛在新買家不知道或懷疑產品美味程度的品牌優勢的反饋，名為“誰知道”活動，它向懷疑者以及我們的核心現有消費者發出了聲音，強調您可以吃和吃享受這些美味的產品並保持或減肥。

Rob Lowe remains our brand ambassador and embodiment of the brand benefits. Joining him in a playful dialogue and converting a skeptic into an Atkins' consumer is renowned comedian and no one's skeptic, Wanda Sykes. We've created 3 spots that will rotate over the coming months. Each ad is focused on a different aspect of the business, which has positioned us nicely for the upcoming New Year, New Year's season. Consumer testing shows the spot to drive greater appeal among lights and nonusers that also resonates strongly with existing users. And we're taking a slightly different approach to where consumers will see our advertising, which will increase our reach.

Rob Lowe 仍然是我們的品牌大使和品牌優勢的體現。著名喜劇演員萬達·賽克斯 (Wanda Sykes) 與他進行了一場有趣的對話，並將一名懷疑論者轉變為阿特金斯的消費者。我們創建了 3 個位置，這些位置將在未來幾個月內輪換。每個廣告都專注於業務的不同方面，這為我們在即將到來的新年、新年季節做好了準備。消費者測試表明，該地點在輕度用戶和非用戶中具有更大的吸引力，同時也與現有用戶產生強烈共鳴。我們對消費者看到廣告的位置採取了略有不同的方法，這將擴大我們的覆蓋範圍。

Most recently, we debuted our new ads on October 12, during Thursday Night Football and October 22 during Sunday Night Football. We'll continue to see our ads during the year across cable, streaming and digital channels.

最近，我們在 10 月 12 日的周四橄欖球之夜和 10 月 22 日的周日橄欖球之夜首次推出了新廣告。今年我們將繼續在有線、串流媒體和數位管道上看到我們的廣告。

We know what we need to do to change the trajectory of the brand performance. We're beginning to deploy the plan and it will continue to build during the year and into fiscal 2025. I look forward to keeping you up to date with that progress.

我們知道需要做什麼來改變品牌績效的軌跡。我們正在開始部署該計劃，並將在今年和 2025 財年繼續推進。我期待向您通報最新進展。

In summary, I'm pleased with our overall fiscal 2023 results. We compete in an attractive category that is well positioned against the mega trends of healthy snacking with a focus on convenient products across multiple forms that are high in protein and low in carbs and sugar. In fiscal 2024, driven by quick marketplace momentum our plan is to deliver solid net sales growth driven by volume. As such, we're excited about our plans, our business and the opportunities ahead.

總之，我對我們 2023 財年的整體表現感到滿意。我們在一個有吸引力的類別中競爭，該類別在健康零食的大趨勢中處於有利地位，重點是多種形式的高蛋白、低碳水化合物和糖的方便產品。到 2024 財年，在快速的市場勢頭的推動下，我們的計劃是實現由銷售驅動的穩健的淨銷售額增長。因此，我們對我們的計劃、我們的業務和未來的機會感到興奮。

Lastly, I want to thank our amazing employees who work tirelessly every day to provide nutritious, delicious and convenient food options for consumers. Our team believes food should work for people, not against them, and they're passionate about helping consumers with a healthy lifestyle. I'm very grateful for their passion and commitment.

最後，我要感謝我們優秀的員工，他們每天不知疲倦地工作，為消費者提供營養、美味和方便的食品選擇。我們的團隊相信食物應該為人們服務，而不是對他們不利，他們熱衷於幫助消費者建立健康的生活方式。我非常感謝他們的熱情和承諾。

Now I'll turn the call over to Shaun, who will provide you with some greater financial details.

現在我將把電話轉給肖恩，他將為您提供一些更詳細的財務詳細資訊。

Thank you, Geoff, and good morning, everyone. I will begin with an overview of our net sales. Total Simply Good Foods fourth quarter net sales of $320.4 million increased 16.9% versus the year-ago period. Looking at the Q4 drivers of growth, net price realization was about 3.5 percentage points and volume was up 13.4%. As Geoff stated earlier, net sales growth outpaced retail takeaway. At the bottom of this slide, we have to reconcile Q4 POS of 11% to Q4 North America net sales growth of 17%. The biggest driver is in the prior year period, to the retail customer inventory draw down last year. As we've discussed throughout the year, in fiscal 2022, retailers increased their inventory levels to address supply chain challenges and depleted this inventory in Q4 of fiscal 2022, which is atypical.

謝謝傑夫，大家早安。我將首先概述我們的淨銷售額。 Simply Good Foods 第四季淨銷售額為 3.204 億美元，比去年同期成長 16.9%。從第四季的成長驅動因素來看，淨價格實現成長約 3.5 個百分點，成交量成長 13.4%。正如傑夫早些時候所說，淨銷售額增長超過了零售外賣。在這張投影片的底部，我們必須將第四季度 POS 的 11% 與第四季北美淨銷售額成長 17% 進行協調。最大的推動因素是去年同期，去年零售客戶庫存減少。正如我們全年討論的那樣，在 2022 財年，零售商增加了庫存水準以應對供應鏈挑戰，並在 2022 財年第四季度耗盡了庫存，這是不典型的。

This year, we returned to a more normalized pattern, where retailers built 1 week or 2 of inventory in the first half of the year and depleted the majority of it in Q3 with minimal change in Q4. Full year net sales of $1.24 billion increased 6.3% versus the year ago period. As we exited fiscal year 2021 and 2022, inventory at retail moved around due to supply chain issues. However, as we exit 2023, we believe we ended the year with more normal retail inventory levels. Therefore, in fiscal 2024, we anticipate for full year net sales and retail takeaway growth will be largely in line.

今年，我們回到了更正常化的模式，即零售商在上半年建立了 1 週或 2 週的庫存，並在第三季度耗盡了大部分庫存，第四季度的變化很小。全年淨銷售額為 12.4 億美元，較去年同期成長 6.3%。隨著 2021 和 2022 財年結束，零售庫存因供應鏈問題而改變。然而，隨著 2023 年的結束，我們相信年底零售庫存水準將更加正常。因此，在 2024 財年，我們預計全年淨銷售額和零售外送成長將基本一致。

Moving on to other P&L items for Q4. Gross profit was $120.5 million, an increase of $18.6 million from the year ago period, resulting in gross margin of 37.6%. The 50 basis point increase versus the year ago period was primarily due to lower ingredient packaging costs. Adjusted EBITDA was $67.3 million, an increase of $16.3 million from the year ago period. Selling and marketing expenses were $30.8 million versus $26.9 million, an increase of 14.8%, largely due to the timing of spend within the year.

繼續討論第四季的其他損益項目。毛利為1.205億美元，較去年同期增加1,860萬美元，毛利率為37.6%。與去年同期相比增加 50 個基點主要是因為原料包裝成本降低。調整後 EBITDA 為 6,730 萬美元，較去年同期增加 1,630 萬美元。銷售和行銷費用為 3,080 萬美元，對比 2,690 萬美元，成長了 14.8%，這主要是由於年內支出的時間安排。

GAAP G&A expenses were $29.5 million, an increase of $2.4 million versus last year, primarily due to executive transition costs. Excluding these costs as well as stock-based compensation G&A declined $900,000 to $23.2 million. Finally, net interest income and interest expense increased $1 million to $6.4 million due to higher variable interest rates related to the term loan. And as expected, our Q4 tax rate was about 25%. As a result, net income was $36.6 million versus $30.1 million last year.

GAAP G&A 費用為 2,950 萬美元，比去年增加 240 萬美元，主要是由於高階主管過渡成本。排除這些成本以及基於股票的薪酬，G&A 下降了 90 萬美元，至 2,320 萬美元。最後，由於與定期貸款相關的可變利率上升，淨利息收入和利息支出增加了 100 萬美元，達到 640 萬美元。正如預期的那樣，我們第四季的稅率約為 25%。結果，淨利潤為 3,660 萬美元，而去年為 3,010 萬美元。

Turning now to full year results. Gross profit was $453.4 million, an increase of 1.8% versus the year ago period. Adjusted EBITDA increased $11.6 million to $245.6 million due to higher gross profit and SG&A leverage. Selling and marketing expenses declined 1.8% to $119.5 million. GAAP G&A expenses were $111.6 million, including stock-based compensation executive transition costs and term loan transaction fees. Excluding these costs, G&A declined $800,000 to $91.3 million. Net income was $133.6 million versus $108.6 million in the year ago period. Note that the year-ago period includes $30.1 million related to the remeasurement of the private warrant liabilities.

現在轉向全年業績。毛利為 4.534 億美元，較去年同期成長 1.8%。由於毛利和 SG&A 槓桿率的提高，調整後 EBITDA 增加了 1,160 萬美元，達到 2.456 億美元。銷售和行銷費用下降 1.8% 至 1.195 億美元。 GAAP G&A 費用為 1.116 億美元，包括基於股票的薪酬、高階主管過渡成本和定期貸款交易費用。排除這些成本，G&A 下降 80 萬美元，降至 9,130​​ 萬美元。淨利為 1.336 億美元，去年同期為 1.086 億美元。請注意，去年同期包括與重新計量私人認股權證負債相關的 3,010 萬美元。

Turning to EPS. Fourth quarter reported EPS was $0.36 per share diluted compared to $0.30 per share diluted for the comparable period of 2022. Adjusted diluted EPS was $0.45 versus $0.36 in the prior year ago period. Full year reported EPS was $1.32 and adjusted diluted EPS was $1.63. Note that we calculate adjusted diluted EPS as adjusted EBITDA less interest income, interest expense and income taxes. Please refer to today's press release for an explanation and reconciliation of non-GAAP financial measures.

轉向每股收益。第四季度稀釋後每股收益為 0.36 美元，而 2022 年同期稀釋後每股收益為 0.30 美元。調整後稀釋後每股收益為 0.45 美元，去年同期為 0.36 美元。全年報告每股收益為 1.32 美元，調整後稀釋每股收益為 1.63 美元。請注意，我們計算調整後稀釋每股盈餘為調整後 EBITDA 減去利息收入、利息支出和所得稅。請參閱今天的新聞稿，以了解非公認會計原則財務指標的解釋和調節。

Moving to the balance sheet and cash flow. Fourth quarter and full year cash provided by operating activities was $61 million and $171 million, respectively. As of August 26, 2023, the company had cash of $87.7 million. In fiscal 2023, the company repaid $121.5 million of its term loan and at the end of the year, the outstanding principal balance was $285 million. Capital expenditures in 2023 were $11.6 million. Fiscal 2024 CapEx is expected to be in the $8 million to $10 million range. In fiscal 2024, we anticipate net interest expense to be around $18 million to $20 million, including noncash amortization expense related to the deferred financing fees.

轉向資產負債表和現金流量。第四季和全年經營活動提供的現金分別為 6,100 萬美元和 1.71 億美元。截至2023年8月26日，該公司擁有現金8,770萬美元。 2023財年，該公司償還了1.215億美元的定期貸款，截至年底，未償本金餘額為2.85億美元。 2023 年的資本支出為 1,160 萬美元。 2024 財年資本支出預計在 800 萬至 1,000 萬美元範圍內。 2024 財年，我們預計淨利息支出約為 1,800 萬至 2,000 萬美元，包括與遞延融資費用相關的非現金攤提費用。

Now to wrap up in a challenging macroeconomic environment, the nutrition snacking category growth continues to be strong. We expect the ingredients and packaging costs to be lower in fiscal 2024 compared to last year and a result in solid gross margin expansion. This provides us with the flexibility to invest in capabilities and marketing initiatives that will drive near and long-term growth.

現在，在充滿挑戰的宏觀經濟環境中，營養零食類別的成長持續強勁。我們預計 2024 財年的原料和包裝成本將低於去年，從而實現毛利率的穩健擴張。這使我們能夠靈活地投資於能力和行銷計劃，從而推動近期和長期成長。

As such, while early, in fiscal 2024, we are on track to deliver solid net sales and adjusted EBITDA growth. Specifically, we anticipate the following for the full fiscal year 2024. Net sales growth driven by volume to be at the high end of our company's long-term algorithm of 4% to 6%, including the benefit of the 53rd week. Adjusted EBITDA is anticipated to increase slightly greater than the net sales growth. and adjusted diluted EPS will increase greater than adjusted EBITDA growth.

因此，在 2024 財年初期，我們有望實現穩健的淨銷售額和調整後 EBITDA 成長。具體來說，我們預計 2024 年整個財年將出現以下情況。銷量驅動的淨銷售額成長將達到我們公司長期演算法的上限，即 4% 至 6%，其中包括第 53 週的收益。調整後的 EBITDA 預計將略高於淨銷售額的成長。調整後稀釋每股盈餘的成長將大於調整後 EBITDA 的成長。

We appreciate everyone's interest in our company, and we're now available to take your questions.

我們感謝大家對我們公司的興趣，我們現在可以回答您的問題。

(Operator Instructions) Our first question comes from the line of John Baumgartner with Mizuho Securities.

（操作員指示）我們的第一個問題來自瑞穗證券的約翰·鮑姆加特納（John Baumgartner）。

Geoff, I wanted to ask about the skeptics associated with the Atkins brand. How many of them are buying other brands in the category relative to how many would be incremental? And of the folks buying other brands, do you have a sense as to whether they're buying other weight management brands or more high-protein active nutrition brands.

傑夫，我想問與阿特金斯品牌相關的懷疑論者。他們中有多少人正在購買該類別中的其他品牌，而有多少人會增量購買？對於購買其他品牌的人來說，您是否知道他們是購買其他體重管理品牌還是更多高蛋白活性營養品牌。

I'm trying to think through this and understand how much of this pool of skeptics as you pursue them requires winning more of a market share game and dislodging consumers relative to how much would be contingent on growing the category and how that impacts your engagement?

我正在嘗試思考這一點，並了解當您追求這些懷疑論者時，有多少人需要贏得更多的市場份額遊戲並驅逐消費者，相對於該類別的增長有多少取決於以及這如何影響您的參與度？

Thanks for the question. I hope you like the new advertising. When we were looking at Atkins, so we took a step back. And what we really heard loud and clear through the research is that Atkins is one of the best positioned brands out there focused on weight management. What we heard loud and clear is that 80% of consumers want to lose or maintain weight and Atkins is seen as the trusted leader in low carb, low sugar solution. So we see nothing but tremendous potential for this brand.

謝謝你的提問。我希望你喜歡新廣告。當我們看到阿特金斯時，我們退了一步。透過研究，我們真正清楚地聽到的是，阿特金斯是專注於體重管理的定位最好的品牌之一。我們清楚聽到的是，80% 的消費者希望減肥或維持體重，而阿特金斯被視為低碳水化合物、低糖解決方案領域值得信賴的領導者。因此，我們只看到了這個品牌的巨大潛力。

But and as we talked in the scripted remarks, we did hear that there's a group of consumers who are either a little confused about what Atkins is or don't fully understand the benefits that you can eat products this delicious and lose or maintain weight. And that's when we started zeroing in on this idea that there are some skeptics out there, which to us represent nothing but upside to the business. Because as you know, once we convert consumers, they become loyal very quickly and the buy rate is particularly high compared to most consumer products. So that was the goal with this new advertising, is to firstly communicate Atkins is not a weight management plan, it's not a regimented weight loss program. We have a range of delicious products that can help consumers maintain or lose weight.

但是，正如我們在腳本中所說的那樣，我們確實聽說有一群消費者要么對阿特金斯是什麼有點困惑，要么不完全理解可以吃如此美味的產品並減肥或保持體重的好處。就在那時，我們開始關注這個想法，即存在一些懷疑論者，對我們來說，這只代表了業務的好處。因為如您所知，一旦我們轉化了消費者，他們很快就會變得忠誠，與大多數消費品相比，購買率特別高。這就是這個新廣告的目標，首先是要傳達阿特金斯不是一個體重管理計劃，它不是一個嚴格的減肥計劃。我們有一系列美味的產品可以幫助消費者維持或減肥。

And as I stepped back on the business in a fresh set of eyes, I see nothing but upside. If we can start to convert what might be very light consumers or nonconsumers and start moving them down the funnel into loyal consumers with high buy rate. So that was the genesis for how we arrived at that marketing strategy. What we also found is the 2 new campaign also strongly resonates with loyal consumers because it's a little tip of the hat to them, who knew, I knew. So with this new campaign, what we found is we were talking and we were resonating both with our loyal consumers and with potential new consumers that we're going to move through the funnel.

當我以全新的眼光重新審視這個行業時，我只看到了積極的一面。如果我們能夠開始將那些可能是非常輕度消費者或非消費者的人轉變為具有高購買率的忠實消費者。這就是我們制定行銷策略的起源。我們還發現，這兩項新活動也引起了忠實消費者的強烈共鳴，因為這對他們來說是一個小提示，誰知道，我就知道。因此，透過這次新的活動，我們發現我們正在與我們的忠實消費者和我們將透過管道移動的潛在新消費者進行交談並產生共鳴。

And then just to follow up. When we think about the marketing initiatives for fiscal '24, it sounds like you've got a fair amount of non-price initiatives that are heading into the market. Do you have a sense -- maybe it's too early, but do you have a sense at this point, when you look across the competitive spectrum in the category, do you have a sense that your competitors are sort of also in market following in a similar way where they're leaning more on non-price promotion, more marketing more advertising, more in-store display as opposed to just deep price cuts in terms of funneling back the upstream deflation in the market?

然後只是跟進。當我們考慮 24 財年的行銷措施時，聽起來您已經有相當多的非價格舉措正在進入市場。你是否有一種感覺——也許現在還為時過早，但是此時你是否有一種感覺，當你縱觀該類別的競爭範圍時，你是否有一種感覺，你的競爭對手也在某種程度上跟隨市場？類似地，他們更傾向於非價格促銷、更多的營銷、更多的廣告、更多的店內展示，而不是僅僅大幅降價，以回饋市場上游的通貨緊縮？

I think what separates Simply Good Foods from almost the majority of our competitors is how committed we are to brand building and in particular, marketing. We're spending right now about 9% of net sales. And we know that at that level of spend, we have a very strong share of voice. As we think about Atkins, and we just talked about that marketing campaign. We're investing slightly above a year ago on Atkins and with a particular heavy up focus over the first quarter.

我認為 Simply Good Foods 與幾乎大多數競爭對手的區別在於我們對品牌建設，特別是行銷的承諾。我們現在的支出約佔淨銷售額的 9%。我們知道，在這樣的支出層面上，我們擁有非常強大的話語權。當我們想到阿特金斯時，我們剛剛談到了行銷活動。我們對阿特金斯的投資略高於一年前，特別是第一季的重點關注。

As we talked about, based on our testing results, we believe the creative will perform more strongly, and we're focused on additional reach, taking our reach from 69% to 86%. And then in the back half of the year, we're going to be making a significant investment in Quest advertising, which really hasn't had a lot of focus to date. So we'll be bringing out a new campaign, a reach-based media campaign behind that.

正如我們所討論的，根據我們的測試結果，我們相信廣告素材會表現得更強勁，並且我們專注於擴大覆蓋範圍，將覆蓋範圍從 69% 提高到 86%。然後在今年下半年，我們將對 Quest 廣告進行大量投資，迄今為止，該廣告確實沒有得到太多關注。因此，我們將推出一項新的活動，這是一項基於影響力的媒體活動。

So we are the market leaders. We fundamentally believe in brand building, and we believe that separates our company and our brands from our competitors.

所以我們是市場領導者。我們從根本上相信品牌建設，我們相信這將我們的公司和我們的品牌與我們的競爭對手區分開來。

Our next question comes from the line of Jason English with Goldman Sachs.

我們的下一個問題來自 Jason English 與高盛的對話。

A couple of questions. First, some tactical questions. You highlighted some new club product for Atkins. Is this designed for your existing customers? Or is any of this an opportunity to penetrate new customers. And then on Quest, you referenced partnering with retailers who view Quest as a pioneer, nutrition snacking category. Part of your retailers seems like it's par for the course. It sounds like this is probably not like the fact you're calling it out suggests this may be something over and above normal partnership. Can you expand and give us a little more detail and color on that initiative?

有幾個問題。首先，一些戰術問題。您重點介紹了阿特金斯的一些新俱樂部產品。這是為您現有的客戶設計的嗎？或者這是否是一個滲透新客戶的機會？然後在 Quest 上，您提到了與將 Quest 視為營養零食類別先鋒的零售商的合作。您的部分零售商似乎對此是理所當然的。聽起來這可能不像你所說的那樣，事實表明這可能是超出正常夥伴關係的事情。您能否擴展並為我們提供有關該計劃的更多細節和色彩？

Yes, happy to, Jason. As it relates to the Atkins club program, we have moved from offering a variety pack to a straight pack and what we've learned from our own researches, there's a significant opportunity if we can hit a specific price point, which we have. We believe that effort will resonate both with existing consumers as well as bring in new consumers. So that's the goal there.

是的，很高興，傑森。由於它與阿特金斯俱樂部計劃有關，我們已經從提供多種包裝轉向直接包裝，根據我們從自己的研究中了解到的情況，如果我們能夠達到我們所擁有的特定價格點，那麼就有很大的機會。我們相信，這項努力將引起現有消費者的共鳴，並吸引新消費者。這就是目標。

With relation to -- with respect to your second question on Quest, yes, you're right. this category, and I've talked about it before, I described it as a teenager compared to the majority of center-store categories. You've got the twin tailwinds of snacking and health and wellness. It over indexes with millennials and Gen Z. And the reason I refer to it as a teenager, 50% household penetration versus 90% for most center-store categories. And a real, as you know, a bright spot in the center store. And retailers see that. I believe the category could double over the next 5 to 7 years, I don't know exactly when, but that's the potential, retailers see that. I've met with all of them, many multiple times since joining the company. We're also a category adviser to the majority of our customers.

關於你關於 Quest 的第二個問題，是的，你是對的。我之前已經討論過這個類別，與大多數中心商店類別相比，我將其描述為青少年。您擁有零食和健康的雙重推動力。它超過了千禧世代和 Z 世代的指數。我將其稱為青少年的原因是 50% 的家庭滲透率，而大多數中心商店類別的滲透率為 90%。如您所知，這是中心商店中真正的亮點。零售商也看到了這一點。我相信該類別在未來 5 到 7 年內可能會翻一番，我不知道具體時間，但這就是潛力，零售商看到了這一點。自從加入公司以來，我曾多次與他們所有人會面。我們也是大多數客戶的品類顧問。

So one of the things I focused on in my first 6 months is developing multiyear partnerships with retailers to provide and build additional space and additional focus on this category. So moving from perhaps more of a transactional approach to category leadership to a longer term, more strategic approach where we're building plans together to double down on this category, how do we add more space? How do we bring -- how do we have additional merchandising opportunities? et cetera, et cetera. Obviously, e-commerce the only -- a big focus there. And within that, innovation plays a critical role. And as you know, our retailers view Quest is the innovation pioneer in the category. So you're right to highlight it, Jason. It is a stepped up next level approach to category management, that one, that will underpin what we believe will be a doubling of this category over the next 5 to 7 years.

因此，我在前六個月關注的事情之一是與零售商建立多年合作夥伴關係，以提供和建立額外的空間並進一步關注這個類別。因此，從可能更多的交易性方法轉向品類領導力，轉向更長期、更具策略性的方法，我們共同製定計劃以加倍努力，在這一品類上加倍努力，我們如何增加更多空間？我們如何帶來－我們如何擁有額外的推銷機會？等等，等等。顯然，電子商務是唯一的焦點。其中，創新發揮著至關重要的作用。如您所知，我們的零售商認為 Quest 是該類別的創新先鋒。所以你強調這一點是對的，傑森。這是一種升級的品類管理方法，我們相信該品類在未來 5 到 7 年內將翻倍。

Jason, just to add a little bit on that, too, if you take a step back in the last year, we're up 25% in consumption for Quest, right? So I mean that's a huge growth and retailers obviously see that and want to go with a winner here. So they're looking to partner with us because they see the growth potential of the brand.

Jason，我還要補充一點，如果你退後一步，去年我們的 Quest 消耗量增加了 25%，對嗎？所以我的意思是，這是一個巨大的增長，零售商顯然看到了這一點，並希望與這裡的贏家合作。因此，他們希望與我們合作，因為他們看到了該品牌的成長潛力。

And I did a poor job of asking my first question. So let me come back and ask it more directly. Are you taking these new Atkins products to Costco?

我的第一個問題做得很糟糕。所以讓我回來更直接地問一下。您會將這些阿特金斯新產品帶到 Costco 嗎？

Well, as you know, we're not in Costco. We see it as an opportunity. It would represent a significant increase in the business, which would be incremental but of course, we have to find a proposition that works for us and for Costco but you can probably bet that we're having ongoing conversations with them.

嗯，如你所知，我們不在好市多。我們認為這是一個機會。這將代表業務的顯著成長，這將是漸進式的，但當然，我們必須找到一個對我們和好市多都有效的提議，但你可能可以打賭，我們正在與他們進行持續的對話。

Our next question comes from the line of Pamela Kaufman with Morgan Stanley.

我們的下一個問題來自摩根士丹利的帕梅拉·考夫曼。

Can you talk about how you're thinking about the cadence of top line growth throughout fiscal '24? And maybe elaborate on how you're thinking about the growth outlook by brand. And just what are you expecting from the contribution from the 53rd week?

您能否談談您對整個 24 財年營收成長節奏的看法？也許還可以詳細說明您如何看待各個品牌的成長前景。您對第 53 週的貢獻有何期待？

Okay. A lot in there. So let me take a step back and let's talk about the year first, and then I'll talk about the quarter a little bit. So on a 52-week basis, we expect total SMPL sales increase in the midpoint of our long-term net sales growth to 4% to 6%, right? That's all volume. We have no price in there for next year. Within that, we expect Quest to be growing at least low double digits for the year with some slight declines in Atkins. We're going to start seeing the benefits of the Atkins revitalization plan. We expect POS to improve during the year with the consumption in the second half of the year better than first half.

好的。裡面有很多。因此，讓我退一步，讓我們先談談這一年，然後再談談本季。因此，以 52 週為基礎，我們預計 SMPL 總銷售額將在長期淨銷售額成長的中位數成長至 4% 至 6%，對吧？這就是全部音量。我們沒有明年的價格。其中，我們預計 Quest 今年將至少實現兩位數的低成長，而阿特金斯則略有下降。我們將開始看到阿特金斯振興計畫的好處。我們預計 POS 年內將有所改善，下半年消費將優於上半年。

And I think that just speaks to the overall strength of the business as well as the underlying health of the category. So as it relates to the 53rd week, we simply added a point of growth here as we had in our plan we talked about last time. As we finalize that plan, what we basically did was take the average of the last 3 years for the first week in September to forecast the extra week. That's a little bit more than a point of growth, you can't just take 1 divided by 52 to estimate that because we have a fall resets to be shipped in August, we don't replenish that until mid-September. So it's pretty early getting into the 53rd week, but we should plan on about a point of benefit there to more or less depending on timing of shipments. So that kind of focuses on the year and the split of the -- by the brands.

我認為這僅僅說明了該業務的整體實力以及該類別的基本健康狀況。因此，由於涉及第 53 週，我們只是在這裡添加了一個增長點，就像我們上次談到的計劃一樣。當我們最終確定該計劃時，我們基本上所做的就是取過去 3 年 9 月第一周的平均值來預測額外的一周。這比增長點要多一點，你不能只用 1 除以 52 來估計，因為我們有秋季重置，要在 8 月發貨，所以要到 9 月中旬才會補充。因此，現在進入第 53 週還為時過早，但我們應該根據發貨時間或多或少地計劃那裡的好處。因此，這種關注重點是年份和品牌的劃分。

As it relates to the flow during the year, retail takeaway should be somewhat similar by quarter, say, high to mid -- say, mid- to high single digits overall. And as it relates to net sales, it's largely going to follow that consumption, a little bit of a flip from Q1 to Q2. So let me explain that.

由於它與一年中的流量相關，零售外送按季度應該有些相似，例如，從高到中——例如，總體上中到高個位數。由於它與淨銷售額相關，因此它很大程度上將跟隨消費，從第一季到第二季略有翻轉。讓我解釋一下。

In Q1 '24, the net sales comp versus last year is a little bit tough for a couple of reasons. One, we had a specific program last year called the Healthy UN Cap for Quest at a very large mass retailer that we are not repeating this year. Secondly, Atkins RTD bonus packs, which are a big part of our New Year New You are going to ship in Q2 this year, they shipped in Q1 last year. And as Geoff alluded to already, we are increasing trade spend in fiscal '24 on Atkins, particularly in Q1. So we say stay active really in the eyes of the retailer. So Q1 sales is only going to increase in the low single digits. On the flip side, we expect that impact to reverse in Q2. Q2 last year had flat growth. Therefore, Q2 this year, we expect net sales growth to be at the higher end of our algorithm of 4% to 6%. So at the end of Q1, consumption and sales should largely be in line just a flip between Q1 and Q2.

24 年第一季，淨銷售額與去年相比有點困難，原因有幾個。第一，去年我們在一家大型大型零售商處實施了一項名為「Healthy UN Cap for Quest」的具體計劃，今年我們不再重複該計劃。其次，阿特金斯 RTD 獎金包，這是我們今年新年新年的重要組成部分，將在今年第二季度發貨，去年在第一季發貨。正如傑夫已經提到的那樣，我們正在增加 24 財年阿特金斯的貿易支出，特別是第一季。所以我們說在零售商眼中真正保持活躍。因此，第一季的銷售額只會以較低的個位數成長。另一方面，我們預計這種影響將在第二季扭轉。去年第二季成長持平。因此，今年第二季度，我們預計淨銷售額成長將達到我們演算法的上限，即 4% 至 6%。因此，在第一季末，消費和銷售應該在第一季和第二季之間大致保持一致。

That's very helpful. I also just wanted to dig into a bit more on how you plan to capitalize on the growth in GLP-1 drugs. What were the findings of the study that you conducted? And how are you thinking about the role that each Atkins and Quest can play in targeting this consumer?

這非常有幫助。我還想進一步深入了解你們計劃如何利用 GLP-1 藥物的成長。您進行的研究結果是什麼？您如何看待阿特金斯和 Quest 在瞄準這一消費者方面可以發揮的作用？

Yes. Well, we believe, based on our research, which I'll talk about the GLP-1 drug pirate significant tailwind for both businesses. Over the past 3 months, we conducted a lot of proprietary research with consumers on the drug to understand the impact they were having. What we saw is, yes, there's a reduced appetite but it's especially focused on less healthy products. And what we found is that consumers on the drugs were eating and seeking smaller healthy meals and snacks, especially high protein products because they still need to get nutrition they need.

是的。好吧，我們相信，根據我們的研究，我將談論 GLP-1 盜版藥物對這兩家企業的重要動力。在過去的三個月裡，我們與消費者一起對該藥物進行了大量專有研究，以了解他們所產生的影響。我們看到的是，是的，食慾有所下降，但尤其集中在不太健康的產品上。我們發現，服用藥物的消費者正在進食並尋求少量的健康餐點和零食，尤其是高蛋白產品，因為他們仍然需要獲得所需的營養。

So through our research, what we found for both Atkins and Quest opportunities, for these brands to be an excellent companion when consumers are on the product. And our research found that by far the majority of consumers taking the drugs don't plan to stay on. So they still want to hold on to the gains and what we found in our research is our products are an excellent off-ramp as well. So we see this as significant long-term opportunity. We're clearly still in the early innings of these drugs and their adoption. But we wanted to get a jump start on it.

因此，透過我們的研究，我們發現阿特金斯和奎斯特都有機會，讓這些品牌成為消費者使用產品時的絕佳伴侶。我們的研究發現，到目前為止，大多數服用這些藥物的消費者並不打算繼續服用。因此，他們仍然希望保持收益，我們在研究中發現，我們的產品也是一個出色的出口匝道。因此，我們認為這是一個重要的長期機會。顯然，我們仍處於這些藥物及其應用的早期階段。但我們想快速開始。

We've worked with several external partners to build sizable, addressable audience of consumers who are either interested in or on the drug and we plan to deliver them targeted communication, brand messaging, offers, et cetera, again, about how our products can be a perfect companion when you're on the drug and off-ramp. Again, we're still in the early innings of this and the campaign that we will bring to market or deploy in the next quarter but we see this as a long-term potential.

我們與幾個外部合作夥伴合作，建立了規模可觀的、對藥物感興趣或對該藥物感興趣的消費者受眾，我們計劃向他們提供有針對性的溝通、品牌訊息、優惠等，再次說明我們的產品如何當您在毒品和出口匝道上時，它是您的完美伴侶。同樣，我們仍處於這一活動的早期階段，我們將在下個季度將其推向市場或部署，但我們認為這是一個長期潛力。

And as advocates of weight wellness, we think it's terrific that consumers have another tool in their arsenal. And it's just going to bring additional focus to weight loss, particularly on Atkins, which is where the brand plays.

身為體重健康的倡導者，我們認為消費者的武器庫中多了一個工具真是太棒了。這只會讓人們更加關注減肥，尤其是阿特金斯，這是品牌的主業。

Maybe if I could just sneak in one more. So you don't (inaudible) . . .

如果我能再偷偷溜進去一次就好了。所以你不（聽不清楚）。 。 。

(inaudible) go back in the queue.

（聽不清楚）回到隊列中。

Okay. I'll go back in the queue.

好的。我會回到隊列中。

Our next question comes from the line of Matt Smith with Stifel.

我們的下一個問題來自馬特史密斯和史蒂菲爾的對話。

Geoff, if I could ask you, a number of years ago, the Atkins brand, you talked about high loyalty rates and the annual buy rates for existing consumers really being a tailwind to the brand. How do you think about the development of the overall category and the prevalence of new brands and the impact that would have on Atkins as we stand here today? Do those metrics naturally move lower over time, but the growth potential and the size of the category are larger today and therefore, it may not be a negative to the brand? Or do you expect to get back to those high loyalty and repeat rates?

傑夫，如果我可以問你，幾年前，阿特金斯品牌，你談到了現有消費者的高忠誠度和年度購買率確實是該品牌的推動力。您如何看待整個品類的發展、新品牌的流行以及對我們今天站在這裡的阿特金斯的影響？隨著時間的推移，這些指標是否自然會降低，但如今該類別的成長潛力和規模更大，因此，這可能不會對品牌產生負面影響？或者您希望回到那些高忠誠度和重複率嗎？

As I said in the remarks, since coming on to the business, dived very deep on Atkins, a lot of research with consumers, a lot of analytics on the business. And that research to me just reaffirmed the opportunity this business has. It is so uniquely positioned against an opportunity that is significant. As I said, 80% of consumers want to lose or maintain weight and Atkins is seen as a trusted leader in low-carb, low-sugar solutions. So the long-term potential of this business is significant. What I talked about was we had some executional missteps that have impacted some of those metrics by rate, for example. When you're not bringing really great innovation, when you've got an executional misstep with a large club customer, that's going to show up in those numbers.

正如我在評論中所說，自從進入這個行業以來，我對阿特金斯進行了深入研究，對消費者進行了大量研究，並對業務進行了大量分析。對我來說，這項研究再次證實了這個產業所擁有的機會。它的定位如此獨特，面臨重大機會。正如我所說，80% 的消費者希望減肥或維持體重，阿特金斯被視為低碳水化合物、低糖解決方案領域值得信賴的領導者。因此，這項業務的長期潛力是巨大的。我談到的是，我們在執行方面存在一些失誤，例如，這些失誤影響了其中一些指標的比率。當你沒有帶來真正偉大的創新時，當你在大型俱樂部客戶中出現執行失誤時，這就會出現在這些數字中。

But fundamentally, when we fix those and those fixes are in market, and when we continue to support the business with marketing, focused on talking to core users as well as some of the skeptics, we believe these metrics will start to turn around.

但從根本上說，當我們解決這些問題並且這些解決方案已投入市場時，當我們繼續透過行銷支援業務，專注於與核心用戶以及一些懷疑論者交談時，我們相信這些指標將開始扭轉。

And then you have, to the last question, the additional interest in weight management that is just going to drive additional interest in those brands. So the slight decline we're seeing in some of those metrics right now. You've got to look at those and say, a big driver of the impact we're seeing as a commercial misstep. We're fixing it. We're committed to the long-term growth of this business. Which is why we're doubling down, increasing marketing, bringing new innovation to market, working on packaging, and those metrics, very confident, we'll start to turn very quickly in the right direction.

然後，對於最後一個問題，人們對體重管理的額外興趣只會推動人們對這些品牌的額外興趣。因此，我們現在看到其中一些指標略有下降。你必須看看這些，然後說，我們認為這是商業失誤造成影響的一個重要推動因素。我們正在修復它。我們致力於這項業務的長期成長。這就是為什麼我們要加倍努力，加強行銷力度，為市場帶來新的創新，致力於包裝和這些指標，我們非常有信心，將開始快速轉向正確的方向。

Just a quick add on there, Matt, if you take a step back, the Atkins consumer has been a very loyal consumer over the years. We've seen that through the modeling that we've done. We have mentioned before, we've seen a slight decrease in buy rate over the last x period of time, principally because of probably the pricing aspect of that thing. But the buy rate on retained users continues to be very strong. So we'll see that get better, as Geoff said, with all the things we're doing in the market, but I think it continues to be a strength of the brand.

馬特，簡單補充一下，如果您退後一步，阿特金斯消費者多年來一直是非常忠誠的消費者。我們已經透過我們所做的建模看到了這一點。我們之前提到過，在過去的一段時間內，我們看到購買率略有下降，主要是因為這件事的定價方面。但留存用戶的購買率仍然非常強勁。因此，正如傑夫所說，隨著我們在市場上所做的所有事情，我們會看到情況變得更好，但我認為這仍然是品牌的優勢。

Thank you Geoff and John, that was very helpful. I can leave it there and pass it on.

謝謝傑夫和約翰，這非常有幫助。我可以把它留在那裡並傳遞下去。

Our next question comes from the line of Jim Salera with Stephens Inc.

我們的下一個問題來自 Jim Salera 和 Stephens Inc. 的電話。

I wanted to ask, you gave some good detail and appreciate on kind of the Atkins revitalization. When you're having these conversations with your retail partners, are there certain metrics that they want to see, whether it's from the existing Atkins on-shelf presence or maybe in terms of like new product innovation for you guys to win the distribution back? And any color you could offer on that would be helpful.

我想問一下，您對阿特金斯的復興提供了一些很好的細節和讚賞。當您與零售合作夥伴進行這些對話時，他們是否希望看到某些指標，無論是現有的阿特金斯貨架上的存在，還是新產品創新，以幫助您們贏得分銷權？你可以提供的任何顏色都會有幫助。

Yes, sure. I just want to -- just your last point first, our distribution is extremely strong right now. So that hasn't been an issue for us. I have been on the road. I've met with every retailer, many multiple times since joining the company. And I've had conversations about Atkins and I've been candid about some of our commercial missteps, which I think have appreciated. But those conversations have every time gone to the importance of this weight management category and how we are the clear leader in that category, and they want us to win. They are extremely aware, as I've talked about, of the size, the 80% want to lose weight, maintain weight. And this is an important job for consumers that they need to support. And they are committed to Atkins long-term health. They also -- when you talk to them -- to them, it's all about incrementality.

是的，當然。我只想——先談談你的最後一點，我們的分佈現在非常強大。所以這對我們來說不是問題。我一直在路上。自從加入公司以來，我與每家零售商都見過很多次。我曾與阿特金斯進行過交談，並對我們的一些商業失誤持坦率態度，我認為我對此表示讚賞。但這些對話每次都涉及體重管理類別的重要性以及我們如何成為該類別中明顯的領導者，他們希望我們獲勝。正如我所談到的，他們非常清楚體重，80% 的人想要減肥、維持體重。這對消費者來說是一項重要的工作，需要他們的支持。他們致力於阿特金斯的長期健康。他們也——當你和他們交談時——對他們來說，這都是關於增量的。

And that's what Atkins bring to the category, particularly with this type buy rate. So in those conversations, I've laid out our 6-point plan to revitalize the brand. They're excited about it. They're giving us the time, they're giving us the support. And they know -- they look at this category in relation to the rest of the store. They see what -- how it's performing today and they see potential. We talked about doubling it over the next 5 to 7 years. And they know that Atkins is a critical component of that plan. So very, very positive conversations with retailers.

這就是阿特金斯為該類別帶來的東西，尤其是這種類型的購買率。因此，在這些對話中，我制定了振興該品牌的六點計劃。他們對此感到興奮。他們給我們時間，給我們支持。他們知道——他們會將此類別與商店的其他類別聯繫起來。他們看到了它今天的表現，並看到了潛力。我們討論過在未來 5 到 7 年內將其翻倍。他們知道阿特金斯是該計劃的關鍵組成部分。與零售商進行了非常非常積極的對話。

That's helpful. And if I could sneak a follow-up in for Shaun. High-quality problem to have, but as we look forward, you guys don't really have any need to pay down debt. You don't have any CapEx really expenditures as we're modeling the cash build, I mean, should we think of like share repo as a use of some of the excess cash you guys build? Should we just expect cash to build on the balance sheet? Does that get put back into maybe the R&D pipeline or some advertising? Just any way we can think about that moving forward?

這很有幫助。如果我能偷偷地為肖恩做一個後續報道。這是一個高品質的問題，但正如我們所期待的，你們真的沒有必要償還債務。當我們對現金建設進行建模時，您實際上沒有任何資本支出，我的意思是，我們是否應該將股票回購視為對您們建立的一些多餘現金的使用？我們是否應該只期望現金在資產負債表上增加？這是否會重新投入研發管道或一些廣告？我們可以以任何方式思考這一點嗎？

Yes. I mean we have -- first of all, take a step back. We love our model. We love the cash it throws off. You guys know that as you look at our results overall. This year, we'll be continuing that overall. And right now, we're happy to be lower than 1x levered. Especially when you think about the fact we were over 4, 4.5x about 4 years ago with Quest, acquisition. So we have a small group that meets pretty right early to discuss capital allocation. We evaluate debt paydown, share buyback and M&A opportunities as they come up. We'll continue to do that in fiscal '24, but those are certainly the areas that we're looking for from the standpoint of use of the cash.

是的。我的意思是我們——首先，退後一步。我們喜歡我們的模型。我們喜歡它丟掉的現金。當你們看到我們的整體結果時，你們就知道了。今年，我們將繼續這整體。現在，我們很高興槓桿率低於 1 倍。尤其是當你想到大約 4 年前我們透過收購 Quest 實現了 4、4.5 倍以上的成長。因此，我們有一個小組很早就開會討論資本分配。我們會在債務償還、股票回購和併購機會出現時進行評估。我們將在 24 財年繼續這樣做，但從現金使用的角度來看，這些肯定是我們正在尋找的領域。

Our next question comes from the line of Jon Andersen with William Blair.

我們的下一個問題來自喬恩·安徒生和威廉·布萊爾的對話。

I have a question on Quest. The consumption obviously remains quite strong there, running up mid-20s. I'm wondering if you could talk a little bit about the composition of that growth that you're seeing and the composition going forward. So you referenced the household penetration rate being relatively modest, I think, at 15%. When we think about that kind of mid-20s consumption, how much of that is household penetration gain? How much is buy rate among existing users? And can you talk a little bit more about your plan to maintain strong consumption in fiscal '24 on the Quest brand?

我有一個關於 Quest 的問題。那裡的消費顯然仍然相當強勁，大約在 20 多歲左右。我想知道您是否可以談談您所看到的成長的組成以及未來的組成。所以你提到家庭滲透率相對較低，我認為是 15%。當我們考慮 20 多歲的消費時，其中有多少是家庭滲透率的成長？現有用戶的購買率是多少？您能否多談談您在 24 財年保持 Quest 品牌強勁消費的計劃？

When we acquired Quest, it was primarily a bar business, I think bars are about 80% of the business. Today, bars are just a little bit over 50%. And that is because in the last few years, we have successfully launched new products and formats that have really propelled the business. For example, in fiscal '24, we anticipate our salty snack platform to be over $200 million in net sales, 25% of the Quest portfolio.

當我們收購Quest時，它主要是酒吧業務，我認為酒吧大約佔了80%的業務。如今，酒吧的比例略高於 50%。這是因為在過去幾年中，我們成功推出了真正推動業務發展的新產品和新格式。例如，在 24 財年，我們預期鹹味零食平台的淨銷售額將超過 2 億美元，佔 Quest 產品組合的 25%。

But to your question, importantly, this innovation has proven to be highly incremental to the brand and very importantly, to the category. For example, 30% of new users to the brand have come from chips. But critically, why we've been growing chips, the bar business has grown 22% year-to-date. So Quest has proven it's one of the few brands that can successfully extend across multiple product forms.

但對於你的問題，重要的是，這種創新已被證明對品牌以及非常重要的品類來說是高度增量的。例如，該品牌30%的新用戶來自晶片。但至關重要的是，為什麼我們一直在增加薯條，今年迄今為止，酒吧業務已經成長了 22%。因此，Quest 已證明它是少數能夠成功擴展到多種產品形式的品牌之一。

I'll go a step further. Our consumers are demanding it, and our retailers are asking for it and that's the opportunity. I spent a lot of time with Quest consumers over the last 6 months. To them Quest is a lifestyle brand, it sort of brilliant hack of sorts. It's not just a product brand, and it's why they're demanding us to bring out additional formats that we're focused on.

我會更進一步。我們的消費者需要它，我們的零售商也需要它，這就是機會。在過去 6 個月裡，我花了很多時間與 Quest 消費者相處。對他們來說，Quest 是一個生活方式品牌，可以說是一種絕妙的駭客手段。這不僅僅是一個產品品牌，這也是為什麼他們要求我們推出我們關注的其他格式。

So what I would suggest is if you think about a large and perhaps growing carbohydrate, dense snack where we can flip the macros you can probably bet we're looking at it. We've seen, again, that innovation to be highly incremental, brings in new users. But very importantly, retailers see it to us bringing in new category users. And that's why we're getting the support of retailers.

因此，我的建議是，如果您考慮一種大型且可能不斷增長的碳水化合物、密集零食，我們可以在其中翻轉宏，您可能會打賭我們正在關注它。我們再次看到，高度漸進的創新會帶來新用戶。但非常重要的是，零售商認為它為我們帶來了新的類別用戶。這就是我們獲得零售商支持的原因。

And then, I guess, lastly, you've talked about where we're going with the brand. Yes, we'll continue to push out on innovation. There's still distribution weight space. I think Jason made a reference to that. But the next arrow we're pulling out in Quest (inaudible) is marketing. It's talked about the awareness is relatively low versus most brands. There's an opportunity to drive additional winner in household penetration behind a focused and world-class marketing campaign that we'll be rolling out in the new year. So those are the 3 drivers of Quest, but I'll just underscore, this is an incremental brand driving incremental consumers.

然後，我想，最後，您談到了我們對該品牌的發展方向。是的，我們將繼續推動創新。仍然存在分配權重空間。我認為傑森提到過這一點。但我們在 Quest 中推出的下一個箭頭（聽不清楚）是行銷。據說與大多數品牌相比，知名度相對較低。我們將在新的一年推出一項有針對性的世界級行銷活動，這將有機會推動更多家庭滲透率的獲勝者。這些就是 Quest 的 3 個驅動因素，但我只是強調，這是一個推動增量消費者的增量品牌。

I mean I think as you step back, if you look at the '23 growth, we've had tremendous growth. I mean, obviously, we benefited like everyone else from price as we go through that, which we're not going to have this year. We're really excited about the opportunity to continue to grow that brand in the mid-teens with all the growth being volume overall. So when we did the acquisition way back when one of the opportunities that we saw with distribution. We saw that build this year. We're going to continue to see that going forward. But I think the strength of that brand has been recognized by retailers and there's really a growth engine for them as I look at that category overall.

我的意思是，我認為當你退後一步時，如果你看看 23 年的成長，我們已經取得了巨大的成長。我的意思是，顯然，我們像其他人一樣從價格中受益，因為我們經歷了這個過程，但今年我們不會再有這種情況。我們非常高興有機會在十幾歲左右繼續發展該品牌，所有成長都是在銷售上。因此，當我們進行收購時，我們看到了分銷的機會之一。我們今年看到了這棟建築。我們將繼續看到這一點。但我認為該品牌的實力已得到零售商的認可，並且當我整體審視該類別時，他們確實有一個成長引擎。

Our next question comes from the line of Rob Dickerson with Jefferies.

我們的下一個問題來自 Rob Dickerson 和 Jefferies 的對話。

I just wanted to ask, I guess, a little bit about magnitude of kind of the new marketing campaign, right? I mean, if we go back kind of historically with simply kind of as it had de-spec and part of the platform was to kind of run kind of a higher relative rate of marketing kind of brand push, right, low CapEx model, solid top line growth. If we go back even to the, I don't know, fiscal '17, '18 years, selling and marketing expenses were almost at 14% and in '23, we were sub-10%. And then I also understand over time as you can kind of recapture some of this gross margin. I would assume that the level of that marketing spend is stepping up. You're speaking to a new campaign. We have a new brand ambassador.

我想我只是想問一下新行銷活動的規模，對吧？我的意思是，如果我們回顧一下歷史，就像它有去規格一樣，平台的一部分是運行一種相對較高的營銷率的品牌推動，對，低資本支出模型，可靠營收成長。如果我們回顧一下，我不知道，17、18 財年，銷售和行銷費用幾乎為 14%，而在 23 年，我們低於 10%。然後我也明白，隨著時間的推移，你可以重新獲得一些毛利率。我認為行銷支出的水平正在上升。你正在為一個新的競選活動講話。我們有一位新的品牌大使。

So I'm just trying to get a sense of maybe firstly, if we think about fiscal '24, like how much should we be thinking selling or marketing would actually be up year-over-year or as a percentage of sales? And then maybe just any incremental color on kind of what material gross margin expansion kind of implies in fiscal '24?

因此，我只是想先了解一下，如果我們考慮 24 財年，我們應該考慮銷售或行銷實際上會同比增長多少，或者佔銷售額的百分比？然後，也許只是關於 24 財年毛利率擴張意味著什麼的增量色彩？

So I think what you're asking there is just basically how much we stepping up marketing in fiscal '24. If you take a step back, we -- to your point, we had always tried our model, if you will, was get about 10% marketing spend, we're probably closer to 8% of that in '23. We want to be closer to 9% a little bit north of that in '24. So we're going to see meaningful increases in marketing. We plan for mid-teen growth in marketing for fiscal '24 versus where we are today. So that's the point we have. And as Geoff said, it's on both brands. We'll probably see more of that for Atkins in the first half of the year. And then as we have the new advertising for Quest, we'll see that pop in the second half of the year. So I don't know if I answered your question or not, but that was what I think you asked.

因此，我認為您所問的問題基本上是我們在 24 財年加強了多少行銷力度。如果你退後一步，我們——就你的觀點而言，我們一直在嘗試我們的模式，如果你願意的話，我們得到了大約 10% 的營銷支出，我們可能接近 23 年的 8%。我們希望比 2024 年的目標更接近 9%。因此，我們將看到行銷方面的顯著成長。我們規劃 24 財年的行銷業務與目前的情況相比實現中位數的成長。這就是我們的重點。正如傑夫所說，這兩個品牌都有。今年上半年我們可能會看到阿特金斯更多這樣的情況。然後，當我們推出 Quest 的新廣告時，我們將在今年下半年看到這種流行。所以我不知道我是否回答了你的問題，但我認為這就是你問的。

Yes, that's good enough. And then just on gross margin, so thinking of magnitude of expansion potential in '24.

是的，這就足夠了。然後是毛利率，所以要考慮 24 年擴張潛力的大小。

For gross margin?

為了毛利率？

Yes.

是的。

So first of all, we're pretty confident in delivering the gross margin meaningfully in fiscal '24. For the full year, we think gross margin of 38% is very attainable, driven by commodity decreases across most of our key ingredients, a couple of caveats there. First, that's based on how the world is today. Obviously, we're not 100% covered. So if something rattles the market is subject to change. You see a little bit of that with (inaudible) right now.

首先，我們非常有信心在 24 財年實現有意義的毛利率。就全年而言，我們認為 38% 的毛利率是非常可實現的，這是由於我們大多數關鍵原料的商品價格下降所致，但有幾點需要注意。首先，這是基於當今世界的現狀。顯然，我們並沒有 100% 覆蓋。因此，如果發生什麼事情，市場可能會改變。現在您可以透過（聽不清楚）看到一些內容。

Second, we're not going to drop all the favorability to the bottom line. We talked about that already. We're reinvesting a big piece of that back into the business. Marketing will be growing in the mid-teens, both brands, and we're reinvesting some favorability back into trade for Atkins, particularly in the first half of the year as we want to make sure we stay active in the eyes of retailers and consumers until the revitalization plan kind of bears out. So I don't think it's a flavor of what we're looking for.

其次，我們不會把所有的好感度都降到最低。我們已經討論過了。我們正在將其中的很大一部分重新投資回業務中。兩個品牌的行銷將在十幾歲左右增長，我們正在將一些好感度重新投入到阿特金斯的貿易中，特別是在今年上半年，因為我們希望確保我們在零售商和消費者眼中保持活躍直到振興計劃得到證實。所以我認為這不是我們正在尋找的味道。

Our next question comes from the line of Matt McGinley with Needham & Company.

我們的下一個問題來自 Needham & Company 的 Matt McGinley。

I have a follow-up on that gross margin. Can you help frame your expectations on the cadence of gross margin improvement this year? Do you expect those gains to be more front half weighted or back half weighted and you made the mention around higher levels of marketing. I guess can you kind of tease out like what -- how much higher levels of promotion do you expect? And how much of that would be offset by the gains from input deflation in this year?

我對毛利率進行了追蹤。您能否協助制定您對今年毛利率改善節奏的預期？您預計這些收益會更多地前半加權還是後半加權，並且您提到了更高水準的行銷。我想你能梳理一下你期望的晉升水準是多少嗎？其中有多少會被今年投入通貨緊縮的收益所抵銷？

So in terms of sequential for gross margin, I think you're going to see more growth in the second half of the year than the first half of the year. Just if you take a step back, if you look at it historically, Q2 is we have lower gross margin with higher trade spend in the quarter to support New Year, New You. Additionally, we put a little more of the trade spend in Q1 of this year to really jump start the business, as I mentioned. So you're going to see gross margin improve in Q1 versus Q1 last year, should be about the same as Q4. So with Q1, it will be about the same as Q4 in terms of gross margin. And then you see pretty significant gross margin expansion in Q3 and Q4 this year. So a lot of that, as I say, back half loaded.

因此，就毛利率而言，我認為下半年的成長將高於上半年。如果你退後一步，如果你從歷史的角度來看，第二季度我們的毛利率較低，本季的貿易支出較高，以支持新年，新的你。此外，正如我所提到的，我們在今年第一季投入了更多的貿易支出，以真正推動業務發展。因此，您將看到第一季的毛利率比去年第一季有所改善，應該與第四季大致相同。因此，第一季的毛利率將與第四季大致相同。然後你會看到今年第三季和第四季的毛利率大幅成長。正如我所說，很多都是半載回來的。

As it relates to trade, we're up -- I mean, we're not drastically up in spend overall. We're just really trying to make sure that we support the brand in the marketplace as we get through the revitalization. So little bit of an increase there. And effectively, what we did was we typically do promotional plans with our retailers in September and in January to support the resets as well as the New Year New You, we have added some more spending in October and in February this year to support the brand a little bit more and get better growth on those time frames. So I don't if I answered your question or not, but that's direction we're doing.

就貿易而言，我們的支出有所增加——我的意思是，我們的整體支出並沒有大幅增加。我們只是在努力確保在復興過程中能夠在市場上支持品牌。那裡有一點點的增加。實際上，我們所做的通常是在 9 月和 1 月與零售商一起制定促銷計劃，以支持重置以及新年新你，我們在今年 10 月和 2 月增加了一些支出來支持該品牌多一點，並在這些時間範圍內獲得更好的成長。所以我不知道我是否回答了你的問題，但這就是我們正在做的方向。

Ladies and gentlemen, our final question this morning comes from the line of Stephen Powers with Deutsche Bank.

女士們、先生們，我們今天早上的最後一個問題來自德意志銀行的 Stephen Powers。

I guess just listening to the Atkins conversation throughout the call. I think it comes across as you've got a pretty clear view of what the deficiencies have been and a pretty clear vision of needs to be done. I guess the question I'm left with, is there anything, Geoff, as you've gone through the review of that brand that you -- are there open questions that you still have? Are there things that you still don't know that you'd like to know to have just even a higher degree of confidence on the overall revitalization.

我想只是在整個通話過程中聽阿特金斯的談話。我認為這是因為你對缺陷有一個非常清晰的認識，並且對需要完成的工作有一個非常清晰的願景。我想我剩下的問題是，傑夫，當你完成對品牌的審查後，你還有什麼懸而未決的問題嗎？還有哪些事情是您還不知道但想知道的，以便對整體振興更有信心。

That's a fair question. I mean, no, I have a lot of confidence in the plan that we've developed, which is based on what was very comprehensive research on the business, talking to consumers, advanced analytics, et cetera. So there's a tremendous amount of confidence we have in the plan. We know that the opportunities in front of us are to, in the near term, accelerate our innovation to market but ensure we build a multiyear pipeline. We've identified opportunities to upgrade the product and hopefully deliver superior shelf life. We're focused in on specific customers. We've talked a lot about the club channel, which is an opportunity, that fix is already shipping to market. We've talked about doubling down on e-commerce. And then a little more long term, how do we modernize the brand how do we enhance the brand experience.

這是一個公平的問題。我的意思是，不，我對我們制定的計劃很有信心，該計劃基於對業務的非常全面的研究、與消費者的交談、高級分析等。因此，我們對該計劃充滿信心。我們知道，我們面臨的機會是在短期內加速我們的創新進入市場，但確保我們建立一個多年的管道。我們已經確定了產品升級的機會，並希望能夠提供更長的保質期。我們專注於特定客戶。我們已經討論了很多關於俱樂部頻道的問題，這是一個機會，該修復程序已經投入市場。我們已經討論過加倍努力發展電子商務。從長遠來看，我們如何使品牌現代化，如何增強品牌體驗。

You've seen us go out initially with new advertising supported by expanded reach. We've got a packaging refresh coming, which I'm sure you'll understand takes a little longer. The series of initiatives we have will come to market sequentially over the next 12 to 18 months. And then we also have the weight management drug which our research strongly shows this is a tailwind for the business. But that's in the early innings. So as we think about Atkins, we have a goal to stabilize the brand and then by the back half of our fiscal, you'll start to see improvement.

您已經看到我們最初推出了新的廣告，並擴大了覆蓋範圍。我們即將進行包裝更新，我相信您會理解這需要更長的時間。我們這一系列的舉措將在未來 12 至 18 個月內依序推向市場。然後我們還有體重管理藥物，我們的研究強烈表明這是業務的順風車。但這是在前幾局。因此，當我們考慮阿特金斯時，我們的目標是穩定品牌，然後到本財年後半段，您將開始看到進步。

And then underpinning it all, I put a new leadership team in place. to drive enhanced accountability and execution. So I have a tremendous amount of confidence and then it's all wrapped up in the opportunity. This brand is so sharply positioned against a need that is only growing and it's our job to ensure we can deliver its full potential. So a lot of confidence.

然後，為了支撐這一切，我組建了一個新的領導團隊。推動加強問責制和執行力。所以我有極大的信心，然後一切都被這個機會所包圍。這個品牌的定位非常明確，能夠滿足不斷增長的需求，而我們的工作就是確保我們能夠充分發揮其潛力。所以信心十足。

Thank you so much. I know we have gone an hour, so I will leave it there.

太感謝了。我知道我們已經走了一個小時，所以我就把它留在那裡。

I just want to thank everyone for the participating on today's call. We look forward to updating you on our first quarter results in January. So I hope everybody has a good day.

我只想感謝大家參加今天的電話會議。我們期待在一月向您通報我們第一季的最新業績。所以我希望每個人都有美好的一天。

Thank you.

謝謝。

Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。