Vending

Hostess Brands reports strong Q2 2021 sales, earnings

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August 5, 2021

Hostess Brands Inc. reported strong sales and earnings for the three months ending June 30, 2021 compared to Q2, 2020, according to a press release.

The company's net revenue rose 13.8% from $256.2 million in Q2, 2020 to $291.5 million for Q2, 2021.

Adjusted net revenue rose 10.8% from $263 million to $291.5 million, an increase of 10.8% from the same period last year, reflecting strong Hostess branded products performance in the convenience, grocery and dollar channels.

Net income rose 10.8% from $263 million to $29.8 million while adjusted net income increased 10.3% to $32.2 million and adjusted EPS rose from 22 cents to 23 cents.

Sweet baked goods net revenue increased 12.9% to $29.9 million. Voortman adjusted net revenue of $29 million was down $1.4 million or 4.6% due to lapping of last year's inventory pipeline fill to support Voortman's transition to the warehouse distribution model.

"We had another excellent quarter marked by double-digit net revenue growth as our investments for growth are paying off," Andy Callahan, president and chief executive officer, said in the release. "Our outstanding results and the ongoing growth momentum in both at-home and on-the-go snacking occasions makes us optimistic for the balance of the year, enabling us to raise our full year financial outlook and delever to 3x by the end of the year."

The $291.5 million in quarterly revenue beat analyst expectations by $16.7 million while the non-GAAP EPS of 23 cents beat expectations by 1 cent and the GAAP EPS of 21 missed expectations by 1 cent, according to Seeking Alpha.

Shares traded at $15.17 Wednesday against a 52-week range of $11.96-$17.23.

The company raised full year 2021 guidance for revenue growth from 3%-5% to 7.5%-9%, adjusted EBITDA from $255-$265 million to $260-$268 million, and adjusted EPS diluted from 80-85 cents to 83-87 cents.