Flowers Foods' Q2 Shows Continued Positive Trajectory; Ryals McMullian Comments

One of the largest producers of packaged bakery foods in the United States, Flowers Foods operates bakeries across the country that produce a wide range of products easily recognizable to any shopper. The company shared its positive Q2 results and gains in a recent report.

"We continued to execute well in the second quarter with a solid top- and bottom-line performance," said Ryals McMullian, Chairman and Chief Executive Officer. "Our brands outperformed the fresh packaged bread category, growing units in tracked channels, and generating leading unit and dollar share gains. Private label and away-from-home margins maintained their positive trajectory as we improved profitability in existing accounts, and filled available capacity with new, higher-margin business. And savings initiatives are taking hold, driving a meaningful sequential improvement in costs."

Here is a breakdown of the second quarter:

• Sales decreased 0.2 percent to $1.225 billion as positive pricing/mix was more than offset by volume declines, primarily due to business exits
• Net income increased 5 percent to $67 million, primarily due to growth in operating income, partially offset by higher net interest and income tax expense. Adjusted net income increased 6.5 percent to $75.5 million
• Adjusted EBITDA increased 7.8 percent to $143.5 million, representing 11.7 percent of sales, a 90-basis point increase
• Diluted EPS increased $0.02 to $0.32. Adjusted diluted EPS increased $0.03 to $0.36

A press release shared its expectations for the 52-week Fiscal 2024, including sales in the range of approximately $5.091 billion to $5.172 billion, representing 0 to 1.6 percent growth compared to the prior year. An adjusted EBITDA in the range of approximately $524 million to $553 million, and an adjusted diluted EPS in the range of approximately $1.20 to $1.30.

"We are maintaining our 2024 financial outlook, which incorporates continued strong operational performance balanced with the potential impact on consumer and promotional behavior from an uncertain economic environment,” McMullian continued. “We also expect full year results to benefit from new business wins and additional cost savings. Our portfolio strategy is generating improved overall performance and we expect to continue that progress through further investments in innovation and marketing. We remain committed to achieving results in line with our long-term financial targets."

Click here to read the detailed report. And click back to Deli Market News as we continue to cover all things bakery.