Lenexa / KS. (twnk) Hostess Brands Inc., one of the largest manufacturers and marketers of sweet baked goods in the United States including «Twinkies», «Ding Dongs», «Ho Hos», «Donettes» and a variety of new and classic treats, reported its financial results for the three months ended September 30, 2021.
«Our solid momentum continued in the third quarter enabling us to exceed our top and bottom-line expectations. Third quarter sales increased by 10 percent as strong execution across our retail network and exciting innovation generated meaningful volume growth in both «Hostess» and «Voortman» branded portfolios. I am proud of the way in which our team is performing in a dynamic and challenging operating environment as productivity initiatives and higher price realization offset rising inflation allowing us to maintain our attractive margin structure,» commented Andy Callahan, the Company’s President and Chief Executive Officer.
He continued, «We are raising our full-year net revenue guidance while maintaining our Ebitda and EPS outlook as we continue to invest in our capabilities, advertising and marketing to generate top-tier growth and shareholder value over the long-term.»
Third Quarter 2021 Financial Highlights
- Net revenue of USD 288.0 million increased 10.4 percent from the same period last year, reflecting strong «Hostess» and «Voortman» branded growth across multiple channels.
- Gross profit increased 8.6 percent to USD 99.0 million. On an adjusted basis, gross profit increased 8.9 percent to USD 99.3 million, or 34.5 percent of net revenues, as higher volume, favourable product mix, pricing and productivity offset rising inflation.
- Net income was USD 26.2 million or USD 0.19 per diluted share. Adjusted net income increased 14.2 percent to USD 28.9 million and resulted in adjusted EPS of USD 0.21 compared to USD 0.19 in the prior year period.
- Adjusted Ebitda increased 7.6 percent to USD 64.8 million, or 22.5 percent of net revenue, as higher gross profits were partially offset by higher advertising and marketing spend.
- Cash and cash equivalents were USD 228.1 million as of September 30, 2021. Net leverage ratio declined to 3.3x driven by improved operating cash flow.
- Raising full year 2021 guidance for net revenue growth to 9.0 percent – 10.0 percent and reiterating adjusted Ebitda and adjusted EPS guidance of USD 260 million – USD 268 million and USD 0.83 – USD 0.87.
For additional information please read the company’s PDF file below (157 KB).20211109-HOSTESS-BRANDS-Q3-2021