By Daniella Parra
Food company Sovos Brands, Inc. (Nasdaq: SOVO) raised its full year sales guidance amid continued strength in core categories of sauce, yogurt and frozen, and driven by strong volume and pricing growth.
Second quarter sales rose 22% from a year earlier to $197.4 million on the power of brands such as Rao’s Homemade pasta sauces, noosa and Michael Angelo’s. Shares rose 1% today.
Sovos raised its full year net sales guidance to a range of $825 million to $835 million on confidence in its second half plans. The company.went public via IPO in September last year.
“Growth remains our top priority, and we will support our brands with investments behind sales, marketing, innovation, supply chain and other necessary capabilities to drive future share gains for our ‘one-of-a-kind’ brands,” Todd Lachman, President and Chief Executive Officer, said in a statement. “We continue to implement pricing and productivity initiatives to counter inflationary pressures, and are confident that we can improve our margins and continue to create value over the long-term for our stakeholders.”
The net loss for the quarter was $30.3 million or $(0.30) per diluted share, almost entirely due to a goodwill impairment related to Birch Benders, the company said in a statement. Adjusted net income was $12.7 million or $0.13 per diluted share.