Hostess Brands Announces Second Quarter 2023 Results; Andy Callahan Comments

Hostess Brands recently announced its second quarter 2023 results, noting that sustainable growth is still very much in sights.

“Hostess Brands delivered another strong quarter with double-digit profit growth and higher margins driven by favorable net price realization, normalizing supply chain, and contributions from productivity initiatives. Our foundation for sustainable growth remains strong. We are executing well against our growth initiatives with strong customer support behind back-to-school merchandising, leading innovation in the category, and increased investment in our brands, which provide confidence in our ability to generate stronger sales growth in the second half of 2023,” said Andy Callahan, President and Chief Executive Officer, Hostess Brands.

Highlights from the quarter results included:

• Net revenue of $352.4 million increased 3.5 percent from the same period last year, as 10.4 percent contribution from price/mix more than offset lower volume in the quarter
• Gross profit increased 11.8 percent to $126.0 million, or 35.8 percent of net revenue
• Net income was $32.5 million, or $0.24 per diluted share, compared to $30.5 million, or $0.22 per diluted share, in the same period last year. Adjusted net income increased to $37.7 million, resulting in $0.28 adjusted EPS, as compared to $0.22 in the prior period

“We believe we continue to be well-positioned for attractive shareholder returns as we build a premier, pure-play snacking company,” added Callahan. “Given our strong first-half performance, we are raising our full-year adjusted EBITDA and adjusted EPS guidance toward the higher end of our previous range, delivering above long-term algorithm profit growth in 2023.”

To see the report in its entirety, click here.

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