Lenexa, KS-based Hostess Brands Inc. (Nasdaq: TWNK, TWNKW) reported 2021 second-quarter net revenue of $291.5 million, an increase of 13.8%, or $35.3 million, compared with $256.2 million for same period last year.
Adjusted net revenue was $291.5 million, an increase of 10.8%, compared with $263 million in the prior year period. Adjusted net revenue growth was primarily driven by sweet baked goods net revenue, which increased $29.9 million or 12.9%. This growth was driven by double-digit POS growth in grocery, dollar and convenience channels with continued momentum of single-serve products and innovation. Voortman POS trends remained strong with 23.7% growth in the quarter.
Gross profit was $105.1 million, or 36.1% of net revenue, compared with 34.9% in the same period last year.
- Net revenue of $291.5 million increased 13.8%. Adjusted net revenue was $291.5 million, an increase of 10.8% from the same period last year, reflecting strong Hostess-branded products performance in the convenience, grocery and dollar channels.
- Gross profit was $105.1 million, an increase of 17.6%. On an adjusted basis, gross profit increased 7.3% overcoming rising inflation and a difficult year on year comparison as we lapped the Voortman pipeline fill.
- Net income was $29.8 million or $0.21 per diluted share. Adjusted net income increased 10.3% to $32.2 million and adjusted EPS of $0.23, compared with $0.22 in the prior year period.
- Adjusted EBITDA increased 5.1% to $68.4 million, or 23.5% of adjusted net revenue. The increase was driven primarily by higher Hostess® branded sales, favorable product mix and operating efficiencies more than offsetting inflation and investments made for future growth.
- Cash and cash equivalents were $218.8 million as of June 30, 2021. Net leverage ratio declined to 3.4x driven by improved operating cash flow.
- Raising full year 2021 guidance for revenue growth to 7.5%–9.0% and adjusted EBITDA to $260 million–$268 million.
“We had another excellent quarter marked by double-digit net revenue growth as our investments for growth are paying off. Our top-line remains strong while lapping the Voortman pipeline fill from 2020. Our category-leading point-of-sale growth and market share gains within the breakfast, all-day snacking and cookies consumer segments are driven by robust new product innovation and strong execution as we leverage our broad-based distribution strength across channels,” commented Hostess president and chief executive Andy Callahan.