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Flower Foods Releases Q1 Report, Financials Not as Strong as Expected

Flower Foods Releases Q1 Report, Financials Not as Strong as Expected

Thursday, May 19th, 2016

With it’s 16-week quarter having ended on April 23, Flowers Foods, Inc., has released its 2016 Q1 Financials. When compared to last year’s Q1 report, the company saw a sales increase of 5.1 percent to $1.204 billion.

Allen Shiver, President and CEO, Flowers Foods, Inc.

"During the first quarter, the team delivered on our priorities as we continued to execute on our strategic plans to drive profitable growth,” said President and CEO Allen Shiver, in the financial report. “We realized higher prices for our core white loaf and soft variety bread brands, and added production and distribution support to drive growth of our organic brands, Dave's Killer Bread and Alpine Valley.” 

Additional highlights of Flowers Foods 2016 Q1 report are as follows, when compared to the Q1 report from 2015:

  • EBITDA increased 1.7 percent to $138.6 million
  • Quarterly dividends increased 9.4 percent to $0.145 per share
  • Sales in the range of $3.986 to $4.080 billion, representing growth of approximately 5.5 percent to 8 percent

As The Motley Fool reported, investors were hoping to see higher revenue and sales reported from the company, but only saw a climb in sales from the company’s recent acquisition of Alpine Valley Bread and Dave’s Killer Bread. 

Shiver stated in the report that a competitive marketplace, unseasonable weather, and costs from the Tuscaloosa conversion placed pressure on the company’s earnings for the quarter. To increase the company’s margin expansion and earning’s growth, Shiver said that the company is looking to focus on eliminating excess costs, improving promotional effectiveness, and leveraging its most efficient bakeries.

Graphic credited to Google Finance.

"Flowers' competitive position remains strong. We are benefitting from leading brands, efficient bakeries, and a conservative financial position that allows us to navigate challenges while investing in growth and returning capital to shareholders through dividends and share repurchases,” finished Shiver. “Most importantly, our experienced team understands the marketplace and has a proven track record of consistently growing sales and earnings over the long term."

To view the expanded financials of Flowers Foods’ 2016 Q1 report, click here.

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Flowers Foods