Vending

Hostess Brands lifts Q1 2023 results, beats expectations

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May 10, 2023

Hostess Brands Inc. lifted its Q1 2023 revenue and income, beating analyst expectations. Highlights include:

• Net revenue rose 4% from $322.05 million in Q1 2022 to $345.4 million in the quarter ending March 31, 2023. Contribution from previously taken pricing actions and favorable mix provided 14.6% of the growth, offset by a 10.6% decline from volume.
• Net income rose 10.7% from $34.5 million to $38.3 million.
• Adjusted net income of $38.2 million remained relatively flat as compared to the same period last year.
• The company's sweet baked goods point-of-sale increased 0.5% for the quarter and 25.2% on a two-year stacked basis.
• Voortman branded POS grew 10.1%, 39.1%, on a two-year stacked basis.
• Diluted EPS rose from 25 cents to 28 cents.
• Adjusted EPS rose from 27 cents to 28 cents.

Shares traded Tuesday at $26.21 against a 52-week range of $19-$29.

The quarterly revenue of $345.4 million beat analyst expectations by $6.96 million while the GAAP EPS of 28 cents beat expectations by one cent, according to Seeking Alpha.

"The strength of Hostess Brands' business model and power of our brands enabled us to deliver another quarter of revenue and profit growth, while lapping very strong year-ago comparisons," Andy Callahan, president and CEO, said in the press release.

For the full year, the company expects net revenue growth of 4% to 6% with adjusted EPS of $1.08 to $1.13, an increase of 10% to 15% from 2022.