Q1 2024 Flowers Foods Inc Earnings Call Transcript
Key Points
- Flowers Foods Inc (FLO) reported solid first quarter results, reflecting the effectiveness of its portfolio strategy and investments in marketing and innovation.
- The company experienced branded retail volume growth for the first time since 2020, led by Dave's Killer Bread, which saw a 10% unit growth for the second consecutive quarter.
- Flowers Foods Inc (FLO) has raised its savings target from $30 million to $40 million to $40 million to $50 million, which is expected to improve SG&A efficiency.
- The company is maintaining its financial outlook for the year, incorporating continued volume improvement despite ongoing economic uncertainties.
- Flowers Foods Inc (FLO) is seeing increased M&A activity and remains well-positioned for strategic acquisitions with a strong balance sheet.
- The company acknowledged challenges in the consumer environment and the promotional landscape, which could impact future performance.
- Higher labor and technology costs were reported, contributing to increased operating expenses in the quarter.
- Flowers Foods Inc (FLO) is experiencing some stranded overhead costs, although efforts are underway to mitigate these through volume increases and cost-saving initiatives.
- There are ongoing operational issues at two bakeries that impacted gross margin, although these are being addressed.
- The company noted some weakness in the broader basic Nature's Own product line, which has been affected by consumers trading down to private label products.
Good evening, and thank you for standing by. Welcome to the Flowers Foods First Quarter 2024 Results Conference Call. Please be advised that today's event is being recorded.
I would now like to hand the conference over to your opening speaker today, J.T. Rieck, Executive Vice President of Finance and Investor Relations. Please go ahead.
Thank you, Carmen, and good evening. I hope everyone had the opportunity to review our earnings release, listen to our prepared remarks and view the slide presentation that were all posted earlier on our Investor Relations website. After today's Q&A session, we will also post an audio replay of this call.
Please note that in this Q&A session, we may make forward-looking statements about the company's performance. Although we believe these statements to be reasonable, they are subject to risks and uncertainties that could cause actual results to differ materially. In addition to what you hear in these remarks, important factors
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