Vending

Flowers Foods Q2 2021 sales, earnings fall

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August 13, 2021

Flowers Foods Inc., producer of Mrs.Freshly's, Tastykake and other bakery brands, reported sales declines in the second quarter ending July 17 compared to record results in the prior year period that were driven by the pandemic.

Sales decreased 0.8% to $1.02 billion compared to Q2, 2021, according to a press release.

Net income decreased 2.7% to $56.4 million, while adjusted net income decreased 1.7% to $68.8 million.

Diluted EPS decreased 1 cent to 26 cents, while adjusted diluted EPS decreased 1 cent to 32 cents.

Branded retail sales decreased 2% from $14.1 million to $674.7 million, store branded retail sales decreased 9.5% from $13.6 million to $131 million, while non-retail and other sales increased 9.9% from $19.1 million to $211.5 million.

Branded retail sales decreased primarily due to difficult prior year comparisons, partially offset by favorable price/mix.

Store branded retail sales decreased primarily due to volume declines as consumer purchasing shifted to branded retail products.

Non-retail and other sales increased compared to weak sales in the prior year period due to the pandemic.

The $1.02 billion in quarterly revenue beat analyst expectations by $10 million, while the non-GAAP EPS of 32 cents beat expectations by 4 cents and the GAAP EPS of 26 cents were in-line with expectations, according to Seeking Alpha.

Shares traded at $22.87 Thursday against a 52-week range of $21.66-$25.48.

"Flowers' strong second quarter performance reflects the power of our leading brands and our sustained investment in sales growth and network optimization," Ryals McMullian, Flowers Foods' president and CEO, said in the release. "We are delivering results well ahead of pre-pandemic levels as we continue to grow our market share, and I thank our team for their perseverance in navigating the uncertainty caused by the pandemic."

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