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Flowers Foods Reports Third Quarter 2021 Results; Ryals McMullian Discusses

Flowers Foods Reports Third Quarter 2021 Results; Ryals McMullian Discusses


THOMASVILLE, GA
Monday, November 15th, 2021

With leading bakery brands like Nature's Own, Dave's Killer Bread, Wonder, Canyon Bakehouse, and Tastykake in its portfolio, it's no surprise that Flowers Foods is seeing continued growth in the space. The bakery name recently revealed its financial results for the 12-week third quarter ending October 9, 2021, revealing several key achievements and plans for future success.

Ryals McMullian, President and Chief Executive Officer, Flowers Foods"I'm pleased to report another record third quarter," said Ryals McMullian, President and Chief Executive Officer. "We generated sales and earnings above our strong year-ago results as our leading brands gained market share and our non-retail business steadily recovered from the effects of the pandemic. Our performance is a testament to the dedication of our team members, especially those in our bakeries, who have worked tirelessly to meet consumer demand during this challenging time.

The company's third quarter results revealed a sales increase of 3.9 percent from the year prior, totaling $1.028 billion for the quarter. According to the report, branded retail sales increased $31.6 million or 4.8 percent to $689.1 million, while non-retail and other sales increased $18.1 million or 9.2 percent to $214.2 million. Branded retail sales increased primarily due to favorable price and improved promotional efficiency, and non-retail and other sales increased due to recovering demand from restaurants and schools, as well as more favorable pricing.

Flowers Foods is seeing continued growth in the bakery space as it reports another record Q3, revealing a 3.9 percent sales increase from the year prior to total $1.028 billion for the quarter

Other third quarter operating highlights include:

  • Adjusted net income increased 3.9 percent to $64.9 million due to higher sales, which drove cost leverage of certain items and lower interest expense, partially offset by increased marketing investment and transportation costs
  • Adjusted net income increased 3.9 percent to $64.9 million
  • Adjusted EBITDA increased 1.8 percent to $118.5 million, representing 11.5 percent of sales, a 30-basis point decrease
  • Materials, supplies, labor, and other production costs were 50.1 percent of sales, a 20-basis point decrease; these costs decreased as a percentage of sales due to higher sales and $1.9 million of start-up costs in the year-ago period related to the conversion of its Lynchburg, Virginia, facility to an organic bakery

"In light of our strong year-to-date performance, we are raising our 2021 sales and earnings guidance," McMullian continued. "Investments in innovation and marketing are driving sales growth and brand strength, improving our ability to manage inflationary pressures. We will continue executing on our plans to further strengthen our brands, expand margins, and explore potential acquisitions, and we remain confident in achieving our long-term financial targets."

With sights to improve the company's sales growth and brand strength, Flowers Foods is continuing to execute plans to further expand margins and explore potential acquisitions

As the bakery behemoth looks forward, the company is anticipating sales for the 52-week Fiscal 2021 in the range of approximately $4.300 billion to $4.344 billion, representing a decrease of approximately 1–2 percent compared to the prior year period.

To read the full financial report and the company's expectations for fiscal year 2021, click here.

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Flowers Foods
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