BelGioioso Cheese - Fresh Mozzarella
Eiffel Tower - A creamy cow’s milk delight, featuring a chalky white rind and a cream-colored, buttery, soft interior that oozes when at the peak of ripeness and temperature
BelGioioso - Burrata & Stracciatella
Hostess Brands Announces First Quarter 2018 Financial Results

Hostess Brands Announces First Quarter 2018 Financial Results


KANSAS CITY, MO
Friday, May 11th, 2018

After acquiring The Chicago Bakery and entering an agreement to buy out Apollo Funds earlier this year, results are in, and Hostess Brands is off to a strong start to 2018 after reporting its financial results for the three months ended March 31, 2018.

C. Dean Metropoulos, Executive Chairman, Hostess“We are pleased with our sales momentum and strong start to 2018,” said Dean Metropoulos, Executive Chairman. “Our Chicago Bakery transformation is well underway, which we believe will provide significant opportunities for revenue growth within the Breakfast subcategory and be accretive to our future earnings. We continue to introduce new innovative items that have expanded the Hostess® brand market share and continue to expect to grow well above the category average in 2018 and beyond.”

According to a company press release, highlights from the first quarter of 2018 included the following:

  • Net revenue increased 13.1%; excluding the Chicago Bakery, net revenue increased 5.2%
  • The Chicago Bakery, acquired on February 1, 2018, contributed $14.5 million of net revenue
  • Point of sale increased 6.3% for the 12-week period ended March 24, 2018. Point of sale for the top seven sub-brands increased 8.5%
  • In the first quarter of 2018, the Company entered into an agreement to buy out the Apollo Funds' rights to all current and future tax savings under the tax receivable agreement in exchange for a $34.0 million cash payment, resulting in a gain of $12.4 million
  • The Hostess® brand's market share for the 12-week period ended March 24, 2018 was 17.9%, up 124 basis points, which represents a record market share for the brand since its re-launch in 2013
  • Net income was $29.3 million (including a one-time gain of $12.4 million related to the buyout of a portion of the tax receivable agreement) compared to $24.2 million
  • Adjusted EBITDA was $47.0 million, or 22.5% of net revenue, compared to $54.5 million or 29.5% or net revenue
  • For the Sweet Baked Goods Segment, Net revenue was $199.3 million, an increase of $24.5 million, or 14.0%, compared to $174.8 million, while gross profit was $69.4 million, or 34.8% of net revenue, compared to $76.8 million, or 43.9% of net revenue
  • For the in-store Bakery Segment, Net revenue was $9.4 million, a decrease of 0.3 million, or 3.0%, compared to net revenue of $9.7 million, while gross profit was $1.8 million, or 19.1% of net revenue, compared to gross profit of $2.5 million, or 25.8% of net revenue

While, generally, the company’s overall outlook improved, Hostess Brands’ In-Store Bakery segment reportedly took a hit, and the company attributed significant decline in gross profit to high transportation costs and significant one-time investments in bonuses for hourly employees.

Hostess products

Hostess also disclosed its intention to continue to serve as a platform for future acquisitions as we continue to move through 2018.

For the full financial report, click here.

For more in the world of deli, dairy, bakery, and specialty foods, stay tuned to Deli Market News.

Hostess Brands


BelGioioso Cheese - Fresh MozzarellaEiffel Tower - A creamy cow’s milk delight, featuring a chalky white rind and a cream-colored, buttery, soft interior that oozes when at the peak of ripeness and temperatureBelGioioso - Burrata & Stracciatella

Have a new product, press release or story idea?

Let us know

In This Story


Hostess Brands, LLC, continues to delight snack fans everywhere with a variety of new and classic treats like Ding Dongs®, Ho Hos®, Donettes® and Fruit Pies. We're honored to make the original...

American Butter Institute Urges FDA to Address Mislabeled “Butter” Products

The company urges the USDA to take prompt enforcement action against seven “butter” substitutes that allegedly violate the agency’s food labeling requirements.
View Press Release

Harvest A Great Time This Fall With These Hampton Farms Recipes On Your Table

The company partners with and supports local farms to seed and harvest all its peanuts.
View Press Release

Beetology Introduces New Beverages

The company launches cold-pressed, simple, nutrition-packed wellness juices made from nature's superfood—beets.
View Press Release

The Spice Lab is Now USDA NOP Organic Certified

The USDA Organic seal assures consumers that products are 95% or more certified organic.
View Press Release

Valio Unveils On-Trend Food Innovations and Ingredients Solutions at SIAL Paris

The company plans to showcase its latest food innovations and tailor-made ingredients solutions at the upcoming show.
View Press Release

Charlotte-Based Hissho Sushi Makes N.C. Mid-Market Fast 40 List

This year marks 20 years since Hissho Sushi was founded in Charlotte, NC.
View Press Release

Anheuser-Busch Inbev & DS Smith Plastics Named 2018 Excellence in Reusable Packaging Award Winners

RPA announces two winners in the 2018 Excellence in Reusable Packaging award program.
View Press Release

It's Pumpkin Spice Season!

Litehouse debuts a fresh look for its line of deliciously indulgent caramel dips and a limited-edition flavor: Pumpkin Spice Caramel.
View Press Release

Time to Step Up Your Fall Menu Plan; Pereg Natural Foods Gets You Started

Suffering from pumpkin spice fatigue? Here are 14 savory reasons why you still need pumpkin spice in your life.
View Press Release

New Snack Bars Take the Tahini Craze to Healthy Delicious Heights

Absolutely Gluten Free introduces TahiniBAR, the energy bar made from sesame seeds, in three exciting flavors.
View Press Release