Hostess Brands H1 sales, earnings up - Just Food
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Hostess Brands H1 sales, earnings up

09 Aug 2017

US snack cake maker Hostess Brands has booked rising half-year sales and earnings, pointing to new products and moves to capitalise on "white space opportunities".

Hostess Brands H1 sales, earnings up

US snack cake maker Hostess Brands has booked rising half-year sales and earnings, pointing to new products and moves to capitalise on “white space opportunities”.

The Twinkies and Donettes owner posted a 53.2% jump in first-half net income on a pro-forma basis to US$52.4m for the six months to the end of June, in part boosted by an impairment loss booked in the opening six months of 2016. The company’s first-half operating income rose 23.5% to $94.5m.

Hostess said it grew its net revenue by 10% to $387.7m on a pro-forma basis in the first half of 2017.

The pro-forma results are as if Hostess Brands’ sale to US private-equity firm The Gores Group, which was completed in November, was made on 1 January last year.

“We are pleased with our continued ability to gain market share, achieve mid-single digit net sales growth and drive profitability in a challenging retail environment, particularly as we cycled very strong results in the prior-year period,” president and CEO Bill Toler said.

Hostess reiterated its forecasts of annual net revenue of $781m and adjusted EBITDA of $235m.