Flowers Foods Closes Q1 2024; Ryals McMullian Comments

Flowers Foods is ending its first quarter of fiscal 2024 on a high note, clocking a record for the time frame in sales amid challenges.

"Our solid first quarter results highlight the increasing effectiveness of our portfolio strategy and investments in marketing and innovation," said Ryals McMullian, Chairman and Chief Executive Officer, in a quarterly statement. "Amid challenging market conditions, our brands continued to thrive, gaining market share as we outperformed the fresh packaged bread category. Even more impressively, we grew quarterly branded retail volumes for the first time since 2020. Initiatives to improve the profitability in away-from-home and private label are also taking hold, significantly expanding margins in those businesses.”

Highlights of the first Quarter Summary, compared to the prior year first quarter where applicable, included:

• Sales increase of 2.8 percent to a first-quarter record of $1.577 billion
• Net income increased 3.3 percent to $73 million, primarily due to moderating input costs and price increases implemented in the prior year, partly offset by higher selling, distribution, and administrative expenses
• Adjusted net income decreased 0.8 percent to $80.3 million
• Adjusted EBITDA increased 5.5 percent to $159.4 million, representing 10.1 percent of sales, a 30-basis point increase

McMullian stated the company is maintaining its 2024 outlook, which incorporates continued volume improvement while acknowledging the ongoing economic uncertainty, its potential impact on consumer behavior, and on the promotional environment.

“Our full-year results are also expected to benefit from an expansion of our savings initiatives and new business wins,” he continued. “Looking ahead, we remain focused on building continued momentum while capitalizing on more favorable trends in the bread category. We remain confident that our portfolio strategy will enable further progress and performance in line with our long-term financial targets.”

The report can be seen in full here. Meanwhile, for all the latest in strategic decisions and plans across the industry, continue to follow Deli Market News.