KANSAS CITY – Fourth-quarter profit growth helped Hostess Brands, Inc. get double-digit profits in 2021. Offering recommendations for the new year, Hostess forecasts revenue growth in 2022 ranging from 6% to 11%. In addition, during the year the company will build a new bakery in Arkansas.
Net income for the year ended December 31, 2021 was $ 119.3 million, or 91 cents per share on common stock, up 10% from $ 104.68 million, or 84 cents per share, in 2020. Net income for the year was $ 1.14 billion, up 12% from $ 1.02 billion.
At the start of trading on Nasdaq on March 1, shares of Hostess rose to a new 52-week high of $ 22.72, which is about 5% higher compared to $ 21.54 for the close on February 28.
The double-digit increase in net income was due to a sharp improvement in the company’s financial performance in the fourth quarter. For the first three quarters of 2021, the net profit of Hostess Brands decreased by 22% compared to January-September 2020.
In the fourth quarter alone, Hostess’s net income was $ 36.5 million, or 27 cents a share, against a loss a year earlier of $ 1.43 million. Sales were $ 297.2 million, up 16% from $ 256 million a year earlier.
“The Hostesss team has once again demonstrated its resilience and resilience, delivering record-breaking quarterly sales and adjusted EBITDA, well ahead of expectations,” said Andrew P. Callahan, President and CEO. “Our double-digit growth and stable profitability in the fourth quarter and throughout the year reflect higher volumes, a variety of pricing actions, increasingly effective innovation, a presence in a variety of channels and excellent performance. We continue to work at the best level in our class, fighting inflation and supply chains. ”
Strong quarterly sales reflect the growth of the company’s Hostess brand and Voortman’s business across all of its sales channels. Despite higher sales, gross profit in the fourth quarter was relatively flat at 37.2%. Higher prices, volume levers and productivity initiatives offset double-digit inflation.
The 14.9% increase in adjusted EBITDA reflects higher gross returns, partially offset by investment.
During the quarter, Hostess outlets jumped 24%, and the company’s share in the sweet goods category was 218 basis points.
“Hostess’ continued momentum is driven by the strength of its core portfolio and its greater contribution from new innovations including Baby Bundts, Muff’n Stix and Strawberry Cheesecake Donettes, ”the company said.
Voortman brand sales grew 20% in the quarter, more than double the overall cookie growth rate. The hostess said the high performance reflects “steady growth in distribution and strong consumer demand”.
During the quarter, Hostess said it had successfully implemented further price increases to “maintain the industry-leading margin structure”.
In 2021, Hostess installed a new cake production line, and in the first quarter of 2022, it bought a facility in Arkansas to install a new bakery to “support growing consumer demand,” Hostess said.
In addition to the forecast earnings per share of 93 ¢ to 95 ¢ in 2022, an increase of 6% to 11% from the adjusted EPS in 2021, the housewife said her net income will grow by 5-8% over last year. Adjusted EBITDA was projected to be between $ 280 million and $ 290 million, up 4-8% from 2021.
The hostess said her capital expenditures in 2021 will be between $ 120 million and $ 140 million, including $ 80 million for a new bakery.
“Our strong financial recommendations for 2022 reflect our confidence in maintaining a steady growth rate,” the company said.
In 2021, the profit of Hostess Brands increased
Source link In 2021, the profit of Hostess Brands increased