Hostess Brands, the US group behind brands including Twinkies cakes and Voortman cookies, has upped its sales forecast for 2021.
The company has also lifted its the top end of the guidance ranges it had set down for adjusted EBITDA and adjusted earnings per share.
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“We had another excellent quarter marked by double-digit net revenue growth as our investments for growth are paying off,” Hostess Brands president and CEO Andy Callahan said.
“Our outstanding results and the ongoing growth momentum in both at-home and on-the-go snacking occasions makes us optimistic for the balance of the year, enabling us to raise our full year financial outlook and delever to 3x by the end of the year.”
Hostess Brands now sees its revenue growing by 7.5% to 9% in 2021, up from its previous forecast of growth of 3% to 4.5%.
The company’s new guidance range for adjusted EBITDA is $260-268m, compared to $255-265m previously.
Adjusted earnings per share are now estimated to be in the range of $0.80 and $0.85 in 2021, up $0.83 to $0.87 previously.
Callahan added: “With our price realisation, other revenue management activities and additional productivity initiatives we are well positioned to offset rising inflation.”
In the second quarter to the end of June, Hostess Brands generated net revenue of $291.5, up 13.8% on a year earlier. On an adjusted basis, net revenue was up 10.8%.
Second-quarter operating income was $53.1m, versus $34.6m in the corresponding period a year ago. Net income was $29.8m, up sharply from $988,000 in the second quarter of 2020.
Adjusted net income, excluding one-off items, was up 10.3% at $32.2m.
