For the three months ended 31 March 2022, net revenue increased 25.1% to $332.1m versus the same period a year ago. According to Hostess, strong, broad-based consumer demand contributed 15% of the volume growth, with the remaining growth coming from planned pricing actions and favourable product mix.
Net income was $34.6m or $0.25 per diluted share, while adjusted net income increased 41.3% to $38m.
“Our exceptional top-line and bottom-line growth in the first quarter highlighted our access to growing occasions, best-in-class business model, and accelerating innovation and marketing capabilities as outlined in our recent Investor Day presentations,” said Any Callahan, president and CEO.
“Our strong volume growth during the quarter, even as we successfully implemented pricing actions to offset high inflation, underscores favourable snacking behaviours as well as our superior innovation and supply-chain execution.”
The growing demand for sugar-free
Drilling down, Hostess Brands’ Sweet Baked Goods point-of-sale (POS) increased 24.7%, while its share of the category increased by 135 basis points to 22.0%.
“Our focus on large, growing snacking occasions and investments in the innovation and marketing continue to drive the category and enable us to capture a greater market share,” said Callahan.
This was Hostess’ sixth consecutive quarter of market share expansion in the Sweet Baked Goods category, adding to its consistent three year pattern.
Within the category, Voortman-branded POS grew 29% in the quarter, “well above the 9.5% growth of the overall Cookie category”, while its share of the Cookie category increased 342 basis points.