By Exec Edge Editorial Staff
Sovos Brands, Inc. (Nasdaq: SOVO) said first-quarter sales rose 20.4%, driven by strong Rao’s revenue, leading it to raise full-year guidance.
“Sovos Brands delivered another exceptional quarter, with 27% volume-led organic net sales growth and 30% adjusted EBITDA growth,” commented Todd Lachman, President and Chief Executive Officer. “We are updating our guidance to reflect the continued strong momentum we are seeing in the Rao’s Megabrand, which meaningfully outperformed our expectations in Q1 while achieving the largest quarterly household penetration gain in three years. We’re also thrilled to report that Rao’s sauce achieved the #1 share in the food channel in the quarter for the first time ever. We will continue to invest in brand building, talent and capabilities to support our sector-leading growth and maximize long-term shareholder value.”
For the full year, the company expects net sales of $935-$955 million and adjusted EBITDA of $136-$141 million.
Sovos has performed much better than most IPOs from the last few years, thanks to its economic resilience and profitability.