Vending

Hostess Brands lifts Q4, FY 2022 sales on pricing actions, earnings mixed

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February 22, 2023

Hostess Brands lifted Q4 and FY 2022 sales, boosted by pricing actions, while earnings results were mixed, according to an earnings release.

Highlights include:

Net revenue rose 14.2%, from $297.16 million in Q4 2021 to $339.5 million for the quarter ending Dec. 31, 2022.
Contribution from previously taken pricing actions and favorable mix provided 20.5% of the growth, offset by a 6.3% decline in volume. Sweet baked goods net revenue increased $36.8 million, or 13.8%, while cookies net revenue increased $5.5 million, or 18%.
Hostess Brands' sweet baked goods point-of-sale increased by 9.2% and 16.4% for the quarter and year, respectively.
Voortman branded POS grew 28.2% for the quarter.
Net income fell from $36.5 million to $32.9 million in the comparative quarters.
Diluted EPS fell from 25 cents to 24 cents in the comparative quarters while basic EPS fell from 27 cents to 25 cents.
Adjusted net income remained relatively flat at $33.9 million, resulting in adjusted EPS of 25 cents.
Full year net revenue of $1.36 billion increased 18.9% from last year, driven by positive volume growth of 2.6% and 16.3% contribution from price/mix.
Full year net income rose from $119.3 million to $164.2 million.
Diluted EPS rose from 85 cents to $1.19 in the comparative years.
Adjusted net income increased in double digits to $134.6 million in the comparative years while adjusted EPS rose to 98 cents.

Shares traded today at $24.56 against a 52-week range of $19-$29.

The $339.5 million in quarterly revenue beat analyst expectations by $8.2 million while the non-GAAP EPS of 25 cents beat expectations by 1 cent, according to Seeking Alpha.

"Hostess Brands delivered another year of strong top and bottom-line results in 2022, highlighting our attractive snacking portfolio and the resiliency of our advantaged business model," Andy Callahan, president and CEO, said in the press release.

The company expects 2023 adjusted net revenue growth of 4% to 6% and adjusted EPS of $1.08 to $1.13, an increase of 10% to 15% from 2022.