Flowers Foods Reports Strong Q3 Earnings Amid Sales Decline

Flowers Foods ( (FLO) ) has released its Q3 earnings. Here is a breakdown of the information Flowers Foods presented to its investors.

Flowers Foods, Inc., headquartered in Thomasville, Georgia, is a leading producer of packaged bakery foods in the United States, renowned for its popular brands such as Nature’s Own, Dave’s Killer Bread, and Wonder. Operating across numerous bakeries nationwide, the company specializes in producing a wide range of bakery products, primarily in the food production sector.

In the third quarter of 2024, Flowers Foods reported a slight decrease in net sales by 0.7% to $1.191 billion, attributed to volume declines despite a positive pricing/mix. However, the company experienced a significant upswing in net income, which rose to $65.0 million, largely due to reduced legal settlements and related costs. Adjusted EBITDA also saw a 10.0% increase, reflecting a robust operational performance amid challenging market conditions.

Key financial highlights for the quarter included a 12.4% increase in adjusted net income to $69.3 million and a 0.53 dollar increase in diluted EPS to $0.31. The company’s strategic initiatives, particularly in cost management and portfolio strategy, successfully bolstered its earnings. Despite a decline in branded retail net sales by 1.5%, the company managed to optimize its non-retail business, notably in foodservice, which contributed to a favorable price/mix.

Looking ahead, Flowers Foods is narrowing its financial outlook for the rest of the year, with expected net sales growth of up to 1.1% and adjusted EBITDA ranging from $530 million to $542 million. The company remains focused on enhancing shareholder value and achieving long-term financial targets, even as it navigates challenges posed by consumer behavior and promotional activities.