Flowers Foods Q3 Income Dips, Sales Rise; Vending Volume Grows

Posted On: 11/14/2017

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THOMASVILLE, GA -- Flowers Foods' 2017 third-quarter net income fell $73.8 million, from $40.22 million in the year-earlier quarter, resulting in a loss of $33.6 million. Sales rose 1.5% to $932.82 million from $918.79 million for the third quarter of last year.

Non-retail and other sales, which include contract manufacturing, vending and foodservice, decreased 4.1%. The maker of Mrs. Freshley's and Tastykake pastries attributed the decline to the impact of a mix manufacturing divestiture and lost contract manufacturing business, which was partially offset by growth in vending volume. Direct store delivery sales grew 2.4%

"We are pleased with our results for the quarter, which reflect the strength of our brands, the dedication of our team and independent distributor partners, and the ongoing restructuring efforts under Project Centennial," said Flowers Foods president and chief executive Allen Shiver. "Strong demand for Dave's Killer Bread and outstanding execution and service in the marketplace drove growth in sales and market share during the quarter. Earnings were impacted by expected strategic charges that allow us to lower our cost structure and streamline our company, increase focus on our strongest brands, and improve our supply chain. Excluding these charges, our profitability in the third quarter was solid, driven by improved manufacturing efficiencies and enhanced cost discipline across the company. Through Project Centennial, we are making substantial progress and building momentum to achieve the underlying earnings potential of the business."

For the rest of 2017, the Georgia-based company said it continues to expect sales to be in the range of $3.88 billion to $3.92 billion, and for adjusted diluted EPS to be in the range of 85 to 90 cents.

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