Vending

Hostess Brands lifts Q3 2022 results, raises FY guidance

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November 3, 2022

Hostess Brands Inc. lifted its Q3 2022 revenue and earnings over the prior year period and raised its full year guidance, boosted by pricing and volume growth, according to an earnings report. Highlights include:

• Net revenue rose 20.2%, from $287.9 million in Q2 2022 to $346.2 million for the quarter ending Sept. 30, 2022 as higher price/mix accounted for 20.1% of the quarterly growth, with remaining growth attributed to higher volume.
• Net income rose from $26.2 million to $66.3 million.
• Basic EPS rose from 20 cents to 49 cents while diluted EPS rose from 19 cents to 48 cents.
• The company's sweet baked goods point-of-sale business increased 17%, maintaining its share of category dollar sales at 21.4%.
• Voortman branded POS grew 28.8%, and its share of the cookie category increased by 26 basis points, driven in part by the ongoing momentum in the faster-growing sugar-free sub-segment.

Shares traded today at $27.21 against a 52-week range of $16.76-$28.14.

"Hostess Brands delivered another quarter of record-high sales, highlighting the strength of our snacking-oriented portfolio, impactful innovation that targets growing snacking occasions and successful pricing actions to offset elevated inflation. The resiliency of our operating model and the agility of our talented team enabled us to deliver double-digit adjusted EBITDA growth in a volatile environment," Andy Callahan, president and CEO, said in the press release.

The company raised full year 2022 net revenue guidance to 17%-19% growth and raised full year adjusted EBITDA and adjusted EPS guidance to $290-$293 million and 96 cents-98 cents, respectively.