Analyst Summary:
Sovos Brands, Inc. (NASDAQ: SOVO), a rapidly growing food company in the US, has reported strong financial results for their Q4 and fiscal year, which ended on December 31, 2022. The company's Organic Net Sales grew by 28%, driven by both volume and price, and its Adjusted EBITDA was up by 27% compared to the prior year period. Todd Lachman, CEO of Sovos Brands, stated, “Our 2023 guidance reflects our strong momentum, with Organic Net Sales and Adjusted EBITDA expected to grow double digits versus 2022." The company has invested in growth initiatives such as brand building, innovation, and capabilities that will fuel long-term growth. The company's gross margin was down by 220-basis points, and its net debt to last twelve months adjusted EBITDA ratio was 2.9x.
Quotes:
Todd Lachman, President and Chief Executive Officer, said, “In 2022, we delivered another year of sector-leading growth driven by both volume and price, reflecting a uniquely balanced growth profile relative to most of our peers. I am particularly proud of how our teams responded to a challenging year of historically high inflation and global supply chain disruptions.”
Forward-Looking Statements:
Sovos Brands did not provide a reconciliation between its forecasted adjusted EBITDA and a forecasted net income without unreasonable effort due to the inherent difficulty of forecasting and providing reliable estimates for certain adjustment items, which could significantly impact future financial results. The company has warned investors that forward-looking statements in the press release may cause actual results, performance, or achievements to differ materially from those expressed or implied in any forward-looking statement due to risks, uncertainties, and assumptions, which the company cannot predict entirely.