By Exec Edge Editorial Staff
Sovos Brands, Inc. (Nasdaq: SOVO) raised full-year sales guidance following a strong third quarter led by products across various Rao's branded Italian foods.
Sales rose 16.9% in the third quarter to $208.9 million, thanks partly to price increases. Adjusted EBITDA was $29.5 million, reflecting a 14.5% increase over the prior year period.
"I am proud of our team's continued strong execution, as Sovos Brands once again delivered double-digit top line growth in the quarter," said Todd Lachman, President and Chief Executive Officer. "Our growth continues to be led by the entire Rao's franchise, where consumption trends have remained robust. Entering the fourth quarter, we are once again raising our full year net sales guidance to reflect 16.3% organic growth year-to-date and confidence in our growth trajectory, notably given Rao's continued strong dollar and unit consumption growth and the massive opportunity we still have in front of us. While top line growth remains our number one priority, we are steadfastly focused on improving our margins over time."
Sovos raised full year 2022 net sales guidance to $840-$850 million and maintained an adjusted EBITDA guidance range of $116-$122 million.
Sovos has been of the year's best-performing recent IPOs in an otherwise dismal market. The company's shares closed at $14.10 on Wednesday and rose 5% in after-hours trading.
The company went public at a $12 IPO price in September 2021.