Flowers Foods reports Q4 adjusted EPS 22c, consensus 21c

Reports Q4 revenue $1.11B, consensus $1.13B. “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 (FLO). “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. 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 addition of this fast-growing, better-for-you brand is emblematic of our focus on targeting pockets of opportunity within and beyond our existing categories. Our M&A capabilities, combined with the implementation of our portfolio strategy and other actions, gives us continued confidence in our ability to drive future growth consistent with our long-term financial targets.”