Hostess Brands Releases Third Quarter 2022 Results; Andy Callahan Shares

Hostess Brands has released the financial results for its third quarter and nine months that ended September 30, 2022. In it, the snacking powerhouse reported net revenue of $346.2 million, a 20.2 percent increase from the same period last year.

“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,” commented Andy Callahan, President and Chief Executive Officer.

The company also reported its gross profit increased by 16.6 percent, reaching $115.4 million, and net income was $66.3 million.

“Given our strong year-to-date results and continued momentum, Hostess Brands is raising its full-year net revenue, adjusted EBITDA, and adjusted EPS guidance as we continue to make investments in innovation and advertising to generate top-tier growth over the longer term,” Callahan continued.

A few other key highlights include:

• Adjusted EBITDA increased 12.2 percent to $72.7 million
• Capital expenditures increased to $63.8 million from $36.7 million in the prior-year period. The company now expects capital expenditures to be in the $125–$135 million range in 2022
• Raising full-year 2022 net revenue guidance to 17–19 percent growth, as well as raising full-year adjusted EBITDA to $290–$293 million
• The company’s Sweet Baked Goods point-of-sale (POS) increased 17.0 percent, maintaining its share of category dollar sales at 21.4 percent

For more information, click here.

Continue following Deli Market News as we keep an eye on the wire.