On May 16, 2024, Flowers Foods Inc (FLO, Financial) announced its financial results for the first quarter of the fiscal year 2024, which ended on April 20, 2024. The company reported a notable increase in sales and net income, achieving first-quarter records and surpassing analyst expectations. The detailed financial outcomes can be accessed through Flowers Foods Inc's 8-K filing.
Flowers Foods Inc, headquartered in Thomasville, Georgia, is a prominent American producer of packaged bakery goods. The company's extensive product range includes fresh breads, buns, rolls, snack cakes, and tortillas, which are distributed across the United States to various retail and foodservice outlets. Among its leading brands are Nature's Own, Whitewheat, Cobblestone Bread, Wonder, Dave's Killer Bread, Canyon Bakehouse, Mrs. Freshley's, and Tastykake.
Financial Performance Highlights
For Q1 2024, Flowers Foods reported a 2.8% increase in sales, reaching a record $1.577 billion, compared to the estimated $1.243 billion. This growth was primarily driven by effective pricing strategies and the recent acquisition of Papa Pita. The company's net income rose by 3.3% to $73.0 million, with diluted earnings per share (EPS) increasing from $0.33 to $0.34, surpassing the estimated EPS of $0.32.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) saw a 5.5% increase to $159.4 million, representing 10.1% of sales. This improvement reflects a 30-basis point increase from the previous year, attributed to moderating input costs and strategic price increases implemented in the prior year, although partially offset by higher selling, distribution, and administrative expenses.
Operational and Strategic Developments
Ryals McMullian, chairman and CEO of Flowers Foods, commented on the company's performance, stating:
“Our solid first quarter results highlight the increasing effectiveness of our portfolio strategy and investments in marketing and innovation. Amid challenging market conditions, our brands continued to thrive, gaining market share as we outperformed the fresh packaged bread category.”
The company's branded retail sales increased by 3.5% to $1.015 billion, driven by pricing actions and an improved product mix. The sales growth was also supported by the integration of the Papa Pita acquisition, contributing to an overall positive volume impact.
Future Outlook and Projections
Looking ahead to the full fiscal year 2024, Flowers Foods expects sales to range between $5.091 billion and $5.172 billion, with adjusted EBITDA projected to be between $524 million and $553 million. The company anticipates adjusted diluted EPS to be in the range of $1.20 to $1.30. These projections are based on continued volume improvements, expansion of savings initiatives, and new business wins, despite ongoing economic uncertainties.
Overall, Flowers Foods' first-quarter results demonstrate a robust start to 2024, underpinned by strategic initiatives and operational efficiencies that are expected to sustain growth and profitability in the competitive packaged bakery foods market.
For further details on Flowers Foods Inc's financial performance and strategic initiatives, investors and interested parties are encouraged to refer to the full earnings report and supplementary materials available on the company's website.
Explore the complete 8-K earnings release (here) from Flowers Foods Inc for further details.
