LENEXA, KS — Hostess Brands is expanding America's No. 1 donut lineup with the rollout of its new caffeinated Hostess Boost Jumbo Donettes in two decadent flavors – Chocolate Mocha and Caramel Macchiato. Each hearty donut contains slightly less caffeine (50-70 milligrams) than one cup of coffee.
"For adults who are increasingly looking for alternative sources of caffeine, our new Hostess Boost Jumbo Donettes offer a tasty, energy-boosting, grab-and-go way to jumpstart the day," said Christopher Balach, general manager of Hostess Brands, LLC.
Three times bigger than the original Hostess Donettes mini donuts, Hostess Boost Jumbo Donettes are caffeinated with coffee bean extract and are lightly glazed. The Chocolate Mocha variety combines the decadent flavors of chocolate and espresso coffee, while the Caramel Macchiato variety combines creamy caramel and espresso coffee flavors that perfectly blend for a smooth and rich taste. Both varieties come in a 2.5-ounce single-serve package at a suggested retail price of $2.49.
The new Hostess Boost Jumbo Donettes are beginning to roll out this month at convenience stores nationwide.
Financial Results
On March 1, Hostess Brands reported its financial results for the fourth quarter and year ended December 31, 2021.
“The Hostess team once again showcased its resilience and tenacity by delivering record-high quarterly sales and adjusted EBITDA, well-ahead of expectations. Our double-digit top-line growth and stable margins in the fourth quarter, and for the full year, reflect higher volumes, multiple pricing actions, increasingly impactful innovation, omni-channel presence and outstanding execution. We continue to perform at best-in-class levels while navigating inflation and supply chain challenges,” commented Andy Callahan, the company’s President and Chief Executive Officer.
Fourth Quarter 2021 Financial Highlights as Compared to the Prior Year Period:
- Net revenue of $297.2 million increased 16.1% from the same period last year, reflecting strong Hostess® and Voortman® branded growth across all channels.
- Gross profit increased 15.2% from the year-ago period to $110.4 million, or 37.1% of net revenue. On an adjusted basis, gross profit increased 15.4% and gross margin was relatively flat at 37.2% as higher price, volume leverage, and productivity initiatives offset double-digit inflation.
- Net income of $36.5 million, or $0.25 per diluted share compared to a net loss of $1.4 million, or $0.01 per diluted share in the same period last year. Adjusted net income increased $5.3 million, or 18.5%, to $34.0 million, resulting in $0.25 adjusted EPS compared to $0.21 in the year-ago period.
- Adjusted EBITDA increased 14.9% to $73.2 million, or 24.6% of net revenue. The increase was driven by higher gross profit, partially offset by investments in its workforce and selling expenses to support double-digit net revenue growth.
- Cash and cash equivalents were $249.2 million as of December 31, 2021. Net leverage ratio improved from 3.9x to 3.1x driven by improved operating cash flow.
Other Highlights:
- Hostess manufacturer point-of-sale increased 24.1% for the quarter and its share of the Sweet Baked Goods category increased by 218 basis points to 21.5%. The ongoing Hostess® momentum is driven by the strength of its core portfolio and greater contributions from new innovation including Baby Bundts, Muff'n Stix and Strawberry Cheesecake Donettes®.
- Voortman branded POS grew 19.7% for the quarter, more than 2x faster than the overall Cookie category, reflecting ongoing distribution gains and strong consumer demand.
- Successfully implemented additional pricing actions as the Company continues to execute its revenue management initiatives to maintain its industry-leading margin structure.
- Installed a new cake production line in 2021 and purchased a facility in the first quarter of 2022 for the Company’s planned bakery in Arkansas to support growing consumer demand.
- Executed $61.1 million of total repurchases under the previously announced $100 million securities repurchase authorization, including $53.2 million during 2021.
