The company behind many consumers' favorite bakery brands has achieved impressive growth recently, as Flowers Foods has revealed its financial results for the company's 16-week first quarter ended April 23, 2022. In the report, the producer of Nature's Own, Dave's Killer Bread, Wonder, Canyon Bakehouse, Tastykake, and other bakery foods, revealed a sales increase of 10.3 percent, reaching a quarter-record of $1.436 billion.
"We delivered another quarter of record results, reflecting outstanding top-line growth and disciplined execution on costs," commented Ryals McMullian, President and Chief Executive Officer. "Focused implementation of our portfolio strategy drove market share gains for our leading brands, as consumers continued to gravitate to these differentiated products despite widespread inflation. To sustain this robust momentum, we intend to invest in marketing and advertising, introduce new and innovative products, and expand production capacity."
The bakery name also revealed an increase in net income of 19.4 percent from the prior year, totaling $85.6 million. Adjusted net income also increased 6.3 percent to $93.1 million, according to a press release. Adjusted EBITDA increased 2.4 percent to a quarter-record $165.5 million, representing 11.5 percent of sales, a 90-basis point decrease.
These achievements come as the company battles ongoing supply chain challenges and inflation. For the 52-week Fiscal 2022, the company anticipates sales in the range of approximately $4.764 billion to $4.850 billion, representing an increase of approximately 10 percent to 12 percent compared to the prior year period.
"We are adjusting our outlook for fiscal 2022 to account for improved pricing, higher-than-expected inflation, and supply chain disruptions," McMullian continued. "To mitigate resource shortages and volatile commodity prices, which increased beyond our initial expectations, we continue to execute on efficiency initiatives, and we have implemented a price increase that will become effective in the second quarter. The resulting price lag, combined with the supply chain disruptions, is expected to impact EPS by a total of five cents in the second and third quarters. We are encouraged by the strong underlying fundamentals of our business, and our industry-leading team remains dedicated to enhancing long-term shareholder value."
To explore the company's financial results further, click here.
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