Hostess Brands Reports Third Quarter 2023 Results; Andy Callahan Comments

In September of this year, Hostess Brands announced that it was being acquired by The J.M. Smucker Co. Now, several months later, the bakery giant is sharing a post-merger update as part of its third quarter 2023 financial results. The report also shows a net revenue increase of 1.9 percent to $352.8 million, pointing to the success of the deal.

“I am extremely proud of the entire Hostess Brands team for building a premier snacking company focused on attractive snacking occasions, a portfolio of iconic brands, and outstanding execution to deliver long-term, sustainable, profitable growth,” commented Andy Callahan, President and Chief Executive Officer, Hostess Brands.

Hostess Brands was acquired by The J.M. Smucker Co. for $34.25 per share in cash and stock transaction, representing a total enterprise value of $5.6 billion, including assumption of debt. According to a release, Hostess will not provide its outlook for 2023 or longer-term targets. It will also not hold a conference call to discuss financial results for the third quarter and year-to-date ended September 30, 2023.

Besides an increase in net revenue compared to the prior-year period, Hostess’ highlights also included:

• Gross profit increased 3.8 percent to $119.8 million, or 34 percent of net revenue
• Adjusted EBITDA of $72.7 million was flat compared to the prior year
• Capital expenditures were $86.6 million, including building a new bakery in Arkadelphia, Arkansas

To read the report in its entirety, click here.

What will the rest of the fiscal year hold for Hostess? Stay tuned to Deli Market News to find out.