THOMASVILLE, GA -- Flowers Foods Inc. said its second-quarter profits rose 11% as lower expenses offset a decline in sales.
The maker of Mrs. Freshley's pastries, a leading vending brand, posted net income of $33.8 million in the quarter ended July 17, an increase over $30.3 million a year earlier. Revenue dropped 1% to $607.7 million from $614.4 million. Last year's results also included a $3 million gain on an acquisition.
Flowers said its direct store delivery revenue decreased 3.5% to $489.9 million during the quarter, while its warehouse delivery sales grew 10% to $117.8 million. Its Nature's Own soft bread and cake sales grew, while revenue from sales of white and specialty breads and foodservice declined.
During the second quarter, the company reduced spending on material, supplies, labor and other production costs by 4% to $318.6 million.
Flowers said it still expects profit per share to grow 10% to 15% this year to $1.55 to $1.62. But it cut its sales forecast to a 1%-2% revenue increase to $2.63 billion to $2.65 billion, down from the 2.5%-4%, or $2.67 billion to $2.7 billion, previously projected.
