Vending

Hostess Brands delivers strong Q4 and FY 2021 results

Logo provided.

March 2, 2022

Hostess Brand Inc. improved Q4 and FY 2021 sales and earnings, reflecting strong Hostess and Voortman branded growth across all channels, according to a press release. Highlights included:

• Net revenue rose 16.1% from $256 million in Q4 2020 to $297.16 million in Q4 2021.
• Net income rose 18.3% to $36.5 million, or 25 cents per diluted share compared to a net loss of $1.4 million, or 1 cent per diluted share in the same period last year.
• Adjusted net income increased 18.3%, to $34 million, resulting in adjusted EPS of 25 cents compared to 21 cents in the year-ago period.
• For the full year, revenue rose from $1.016 billion in 2020 to $1.142 billion in 2021.
• Net income attributable to Class A shareholders rose from $104.6 million to $119.3 million in the comparative years, while EPS rose from 84 cents to 91 cents on a basic basis and from 51 cents to 86 cents on a diluted basis.

The ongoing momentum is driven by the strength of the company's core portfolio and greater contributions from new innovation including Baby Bundts, Muff'n Stix and Strawberry Cheesecake Donettes.

Shares traded at $22.07 today against a 52-week range of $14.21-$22.72.

The $297.16 million in quarterly revenue beat analyst expectations by $14.27 million while the non-GAAP EPS of 25 cents beat expectations by 2 cents, according to Seeking Alpha.

"Our double-digit top-line growth and stable margins in the fourth quarter, and for the full year, reflect higher volumes, multiple pricing actions, increasingly impactful innovation, omni-channel presence and outstanding execution," Andy Callahan, president and CEO, said in the press release. "We continue to perform at best-in-class levels while navigating inflation and supply chain challenges."

For 2022, the company expects adjusted net revenue growth of 5% to 8% and adjusted EPS of 93 cents to 98 cents, an increase of 6% to 11% from 2021.