Vending

Hostess Brands lifts Q1 2022 revenue, earnings on pricing action

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May 5, 2022

Hostess Brands Inc. improved its Q1 2022 revenue and earnings over the prior year period, driven by pricing actions and a favorable product mix, according to an earnings release.

The company also announced the appointment of Travis Leonard as the chief financial officer, who will join the company on May 11, 2022.

First quarter highlights include:

• Net revenue increased 25.1% from $265.4 million from Q1 2021 to $332.05 million for the quarter ending March 31, 2022, with higher volumes accounting for approximately 15% of the quarterly growth, with the remaining growth from planned pricing actions and favorable product mix. Broad-based consumer demand drove volume growth which contributed 15% of the growth this quarter, with the remaining growth from planned pricing actions and favorable product mix.
• Sweet baked goods net revenue rose 24.7% to $296.4 million while cookies net revenue jumped 28.9% to $35.7 million.
• Net income rose from $26.7 million to $34.6 million in the comparative quarters, while adjusted net income rose 41.3% to $38 million.
• Diluted earnings per share rose from 20 cents to 25 cents while adjusted EPS increased from 20 cents to 27 cents.

Shares traded at $22.81 today against a 52-week range of $15.10-$24.27.

The $332.05 million in quarterly revenue beat analyst expectations by $33.06 million, while the non-GAAP EPS of 27 cents beat expectations by 4 cents, according to Seeking Alpha.

"Our strong volume growth during the quarter, even as we successfully implemented pricing actions to offset high inflation, underscores favorable snacking behaviors as well as our superior innovation and supply-chain execution," Andy Callahan, president and CEO, said in the press release.