Vending

Flowers Foods boosts Q4 and FY 2023 sales, suffers earnings declines

Image: Flowers Foods Inc.

February 9, 2024

Flowers Foods Inc., parent company of Mrs. Freshleys, Tastykake and other brands, lifted its Q4 and FY 2023 sales but suffered earnings declines compared to the prior year periods, according to an earnings report. Highlights include:

• Sales increased 4.3% from $1.08 billion in Q4 2022 to $1.129 billion in the quarter ending Dec. 30, 2023, a fourth-quarter record. Pricing/mix increased 5.6%, volume declined 2.4%, and the Papa Pita acquisition added 1.1%.
• Net income decreased 26.6% from $48.6 million to $35.7 million in the comparative quarters primarily due to increased selling, distribution an administrative expense as well as depreciation and amortization expense.
• Adjusted net income decreased 11.2% to $42.7 million.
• Net income per diluted common share fell from 23 cents to 17 cents.
• Adjusted net income per diluted common share fell from 23 cents to 20 cents.
• Branded retail sales increased 3.6% to $724.6 million due to higher prices intended to offset inflationary pressures, improved mix from greater branded organic product sales, and the acquisition contribution, partially offset by volume declines.
• Other sales increased 5.6% to $404.4 million due to price increases intended to offset inflationary pressures, and the acquisition contribution, partially offset by volume declines.
• Full-year sales rose from $4.8 billion to $5.09 billion.
• Full-year net income fell from $228.4 million to $123.4 million.
• Full-year income per diluted common share fell from $1.07 to 58 cents.

Shares traded today at $22.30 against a 52-week range of $19.64 to $29.10.

The adjusted earnings per share of 20 cents was in line with the Zachs Consensus Estimate.

"Flowers' fourth quarter and full year 2023 results underscore the strength of our leading brands, as we delivered record sales despite difficult market conditions," Ryals McMullian, chairman and CEO, said in the press releas. "Volume trends improved throughout the year, and we gained dollar and unit share in the fourth quarter for the first time since early 2022, reflecting the hard work of our team and investments in innovation and marketing."

The company expects full year sales in the range of approximately $5.091 billion to $5.172 billion, representing zero to 1.6% growth compared to the prior year and adjusted diluted EPS in the range of approximately $1.20 to $1.30.