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‘Strong pricing growth’ boosts Sovos revenue in third quarter

LOUISVILLE — Sovos Brands Inc. (Nasdaq: SOVO), a formerly California-based food-brand company that last year planted its headquarters flag in Louisville, reversed its third-quarter 2021 losses and was back in the black during the most-recent period that ended Sept. 24, 2022.

Net sales in the third quarter of 2022 were $208.9 million, a 16.9% increase over the prior-year period.

Sovos said after the bell on Wednesday that the improvement was “driven primarily by strong pricing growth.”

Net income was $1.5 million, up from a loss of $4,6 million in the third quarter of 2021. 

“I am proud of our team’s continued strong execution, as Sovos Brands once again delivered double-digit top line growth in the quarter,” Sovos CEO Todd Lachman said in a prepared statement. “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 has issued full-year revenue guidance in the range of $840 million to $850 million.

Source: BizWest