Vending

Flowers Foods boosts Q2 2021 income on falling sales

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May 21, 2021

Flowers Foods Inc., which owns Mrs.Freshleys and other brands, reported sales decreased 3.5% from $1.35 billion in Q2 2020 to $1.3 billion for the 16 weeks ending April24, 2021, driven by the pandemic.

Net income increased $77.4 million to $71.7 million due primarily to a $116.2 million charge in the prior year period related to the termination of a pension plan, net of sales declines and the loss on extinguishment of debt in the current quarter. Adjusted net income increased 1.3% to $87.6 million.

Diluted earnings per share rose by 37 cents from a 3-cent loss in Q1 2020 to 34 cents. Adjusted net income was 41 cents in for the period in both years.

The 41 cents per share in quarterly earnings beat Zacks Consensus of 37 cents per share.

Shares traded at $24.70 Thursday against a 52-week range of $21-$24.98.

Branded retail sales decreased $29.1 million or 3.3% to $861.4 million, store branded retail sales decreased $27.9 million or 14.6% to $162.9 million, while non-retail and other sales increased $9.8 million or 3.6% to $277.9 million.

"Flowers delivered impressive results to start 2021," Ryals McMullian, president and CEO, said in the press release. "Our leading brands are thriving, and that strong performance would not be possible without the dedication and perseverance of our team members. I want to extend my sincere thanks for their efforts."

"As the economy reopened in most of the country, our branded retail mix moderated somewhat toward the end of the quarter and foodservice began to recover," he continued.

For an update on how the coronavirus pandemic has affected convenience services, click here.