Hostess Brands announces strong fourth quarter thanks to product innovation and breakfast snacks
Hostess brands is upbeat on its outlook for 2018 after it reported better-than-expected financial gains in its fourth quarter.
The maker of Twinkies, Ding Dongs and other American treats saw 9.7% increase in net revenue in its fourth quarter to US$196.2mn.
The US bakery credited the launch of its new product innovation, Bakery Petites, for its success and said that its core products such as Twinkies also performed well.
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In a statement, Hostess Brands said: “The company's strong performance was led by the introduction of the Hostess Bakery Petites, a premium snacking platform made with no artificial flavours or colours, and no high fructose corn syrup, which contributed 3.1% of the net revenue increase.”
The company also received a US$163.1mn boost thanks to a recent US tax reform which saw net come rise to US$189.6mn.
Bill Toler, President and Chief Executive Officer of Hostess said the company was “optimistic about the continued growth opportunity from our product innovation, including our Hostess Bakery Petites platform and the new breakfast opportunities from our acquisition of the Big Texas and Cloverhill brands.”
Toler is set to retire from as boss of Hostess Brands on 1st March 2018 or sooner if a replacement can be found.
Hostess Brands acquired Big Texas and Cloverhill brands from Aryzta in February to bolster its growing breakfast business.
Toler said that the company is going to focus on distribution and future acquisitions this year, noting "we plan to grow well above the sweet baked goods category in 2018"
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