Flowers Foods, the company behind well-known bakery brands, has announced its financial results for the 12-week fourth quarter and 52-week fiscal year ending December 28, 2024, reporting mixed results amid challenging economic conditions.
According to the press release, fourth quarter highlights include:
For the full fiscal year 2024, net sales increased slightly by 0.2 percent to $5.103 billion, driven by positive pricing/mix and the acquisition of Papa Pita, which offset volume declines. Net income for the year surged 101 percent to $248.1 million, representing 4.9 percent of sales, a 250-basis point increase.
"Flowers' strong execution of our portfolio strategy and cost savings initiatives drove fourth quarter and full year 2024 adjusted EPS growth in a difficult economic environment," said Ryals McMullian, Chairman and CEO of Flowers Foods. "Investments in innovation and in-store operations enabled a solid market share performance from our leading brands despite sales results that fell short of expectations. Furthermore, margins benefited from improved pricing and the addition of profitable new accounts in our away-from-home business combined with a positive mix shift toward higher-margin products within branded retail."
Looking ahead to fiscal 2025, Flowers Foods expects net sales to range between $5.403 billion and $5.487 billion, representing 5.9 percent to 7.5 percent growth compared to the prior year. McMullian expressed optimism about the company's future, stating, "We expect continued strong execution as we navigate a difficult economic environment in 2025. First-half results are expected to benefit from the carryover of new business wins and savings and pricing initiatives, as well as moderating commodity costs. Our outlook for the back half incorporates the lapping of those benefits, commodity cost headwinds, and continued challenging category trends. We are excited about the pending acquisition of Simple Mills, which is expected to be accretive to adjusted EBITDA in 2025, but dilutive to adjusted EPS."
The company reported $412.7 million in cash flow from operating activities for fiscal 2024, with capital expenditures of $132.1 million and dividends paid to shareholders of $203.0 million. Flowers Foods remains focused on its long-term financial targets, leveraging its portfolio strategy, cost-saving initiatives, and M&A capabilities to drive future growth.
For more information, be sure to visit the full press release here.
