Sovos Brands rises on upbeat 2022 sales forecast

Sovos Brands

15/03/2022 14:25

** Shares of food and beverage company co  SOVO.O  rise as
much as ~5% to $11.86 after co forecasts 2022 sales above
estimates 
    ** Stock, last up 1.3%, on course to snap a three-day losing
streak
    ** Co expects 2022 net sales between $800 mln and $815 mln,
compared to analysts' average expectation of $780.1 mln, per
Refinitiv IBES data  urn:newsml:reuters.com:*:nASA034FL
    ** Co also beat Q4 adjusted profit and net sales estimates
helped by strong demand for its sauce, yogurt and frozen items
    ** However, SOVO's gross margin was 31.4% versus 33.6% a
year ago  urn:newsml:reuters.com:*:nGNX3sjC9K
    ** Co says decline was primarily due to incremental costs
from inflationary pressures and global logistical constraints
    ** Shares are down ~5% from its September IPO price of $12

 (Reporting by Ananya Mariam Rajesh in Bengaluru)
 ((AnanyaMariam.Rajesh@thomsonreuters.com))