Flowers Foods, Inc. FLO reported first-quarter adjusted earnings per share of 35 cents, missing the analyst consensus estimate of 38 cents.
Quarterly sales of $1.55 billion (down 1.4% year over year) missed the analyst consensus estimate of $1.60 billion.
Adjusted EBITDA increased 1.6% to $162.0 million, representing 10.4% of net sales, a 30-basis point increase.
The company said it had completed the acquisition of Simple Mills, which contributed $24.3 million in net sales, net loss of $4.2 million, and $3.6 million to adjusted EBITDA.
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“Despite economic uncertainty and greater than expected category declines in the first quarter, Flowers’ performance underscores the importance of our leading brands, each of which maintained or gained unit and dollar share. To mitigate category weakness, we are continuing to invest in on-trend innovation and targeting significant opportunities in faster-growing categories and adjacencies,” said Ryals McMullian, chairman and CEO of Flowers Foods.
“Our adjusted 2025 financial guidance reflects our first quarter performance, the challenging consumer environment, and the potential for increased tariff costs. To improve our near-term results, we are gaining additional shelf space, winning new business, and taking other proactive measures while evolving our business to enable long-term outperformance,” McMullian added.
Net income decreased 27.4% to $53.0 million, representing 3.4% of sales, a 120-basis point decrease year over year.
Outlook: Flowers Foods lowered its FY2025 GAAP EPS guidance to $0.95 to $1.05, below the $1.16 consensus estimate.
The company also cut its sales outlook to $5.30 billion to $5.39 billion from the prior $5.40 billion to $5.49 billion range, compared with the $5.41 billion estimate.
Flowers Foods cut its FY2025 adjusted EPS guidance to $1.05 to $1.15 from $1.18 to $1.28, compared with the $1.16 estimate.
It also lowered sales guidance, excluding the Simple Mills acquisition, to $5.08 billion to $5.17 billion from $5.18 billion to $5.26 billion, compared with the $5.41 billion estimate.
According to Benzinga Pro, FLO stock has lost over 32% in the past year. Investors can gain exposure to the stock via First Trust Cons. Staples AlphaDEX FXG.
Price Action: FLO shares are trading lower by 0.38% to $17.01 at the last check on Friday.
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