Flowers Foods, Inc. reported its Q1 sales increased by 6.9% to a quarter-record of USD 1.534 billion, compared to the first quarter of 2022. The company’s net income decreased by 17.4% to USD 70.7 million and its adjusted net income decreased by 13.1% to USD 80.9 million. The Adjusted EBITDA decreased by 8.7% to USD 151.1 million, representing 9.8% of sales, a 170-basis point decrease.
For the current fiscal year, the company anticipates sales in the range of approximately USD 5.086 billion to USD 5.141 billion, representing an increase of approximately 5.8% to 7.0% compared to FY 2022
Ryals McMullian, Flowers Foods CEO, commented on the results: “Our first quarter results reflect the competitive strength of our leading brands and their ability to meet shifting consumer demand in a challenging environment. Price increases to offset inflationary pressures drove record sales, while our product mix continued to return to more normalized levels as consumers dined out of the home more frequently. Private label category sales remained strong, although the growth rate is moderating.
We are adjusting our outlook for fiscal 2023 to account for the slow start to the year and lower-than-expected branded retail sales due to softer category demand. In response, we are adapting our business to make it even more resilient in the rapidly evolving consumer environment. The nationwide launch of our Dave’s Killer Bread Snack Bars represents a first step in expanding our brands outside of the bread category. We expect further progress in this area with an exciting pipeline of adjacent products in development and through strategic acquisitions. Additionally, we are investing in a number of productivity and efficiency initiatives to ensure we are well-positioned to enhance shareholder value and achieve results in line with our long-term financial targets.”
Headquartered in Thomasville, Ga., Flowers Foods’ 2022 sales were worth USD 4.8 billion. Among the company’s top brands are Nature’s Own, Dave’s Killer Bread, Wonder, Canyon Bakehouse, and Tastykake.
Photo: Dave’s Killer Bread social media