Flowers Foods Inc

Latest Results (02.10.2025):

Flowers Foods Inc reported its financial results for the first quarter of 2025, highlighting a decrease in net sales and net income compared to the previous year. Despite these declines, the company saw a modest increase in adjusted EBITDA and successfully completed the acquisition of Simple Mills, which contributed to its overall performance.

Net Sales Decrease

In the first quarter ended April 19, 2025, Flowers Foods Inc experienced a 1.4% decline in net sales, totaling $1.554 billion. This decrease was primarily driven by unfavorable pricing/mix and volume declines, despite the addition of $24.3 million in net sales from the Simple Mills acquisition.

Net Income Drops

The company's net income fell by 27.4% to $53.0 million, representing 3.4% of sales. This decline was attributed to reduced sales, increased selling, distribution, and administrative (SD&A) expenses, and higher interest costs, partially offset by moderating ingredient costs.

Adjusted EBITDA Growth

Flowers Foods Inc reported a 1.6% increase in adjusted EBITDA, reaching $162.0 million and accounting for 10.4% of net sales. This improvement was mainly due to cost management initiatives, despite challenges in sales volume.

Impact of Simple Mills Acquisition

The acquisition of Simple Mills contributed positively to net sales with $24.3 million but resulted in a net loss of $4.2 million. The acquisition also added $3.6 million to adjusted EBITDA and negatively impacted diluted EPS by $0.02.

CEO's Strategic Outlook

Chairman and CEO Ryals McMullian emphasized the company's focus on investing in innovation and expanding into faster-growing categories. He expressed confidence in Flowers Foods Inc's ability to drive shareholder value and achieve long-term financial targets despite current economic uncertainties.