Hostess Brands Reveals 49M Gain in Second Quarter 2022 Results; Andy Callahan Details

The bakery and snacking categories have a strong hold on today’s consumer, and that hold is demonstrated by the strength of Hostess Brands and its popular portfolio. Hostess recently pulled back the curtain on its financial results for the second quarter of 2022. As revealed in the report, the company’s net revenue for the quarter reached $340.5 million, a $49 million increase from the $291.5 million reported last year.

“Hostess Brands’ iconic brands, access to faster growing snacking occasions, broad-based distribution footprint, and excellent execution continues to drive growth in a volatile environment,” commented Andy Callahan, President and Chief Executive Officer. “During the second quarter, our top-line momentum continued as we posted the 10^th straight quarter of double-digit growth. I am proud of our team’s timely actions to address the ongoing supply-chain fragility and higher inflation which pressured our margins in the quarter.”

Some of the other highlights revealed in Hostess’ second quarter 2022 report include:

• Net revenue increased 16.8 percent from the same period last year as higher prices and favorable product mix accounted for 13.8 percent of the quarterly growth, with remaining growth attributed to higher volumes
• Gross profit increased 7.2 percent to $112.7 million, or 33.1 percent of net revenues, while on an adjusted basis, gross profit increased 7.1 percent to $112.8 million, or 33.1 percent of net revenue
• Net income was $30.5 million or $0.22 per diluted share, a slight increase from the prior year period
• Adjusted EBITDA increased 0.7 percent to $68.9 million

As signified by its results, Hostess will be raising its full-year 2022 net revenue guidance to at least 15 percent growth, a press release explained.

“Our year-to-date results are tracking ahead of our initial expectations and our long-term growth targets, enabling us to raise our full-year net revenue guidance to at least 15 percent growth while maintaining our full-year EBITDA and EPS guidance,” Callahan continued.

To read more about the provider’s Q2 2022 results, click here.

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