Vending

Flowers Foods Q3 2.4% sales gain beats projections, earnings rise

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November 9, 2020

Flowers Foods Inc., which owns the Mrs. Freshley's brand, reported a 2.4% sales gain from $966.5 million in last year's third quarter to $989.7 million in the third quarter ending Oct. 3, 2020, according to an earnings release.

Sales beat market expectations by $14.26 million while non GAAP earnings per share of 29 cents beat projections by 3 cents and GAAP EPS missed by 5 cents, according to Seeking Alpha.

Net income rose 2.3% from $43.36 million to $44.35 million year on year, while net income per diluted earnings per share increased from 20 cents to 21 cents and adjusted EPS rose 7 cents to 29 cents.

Shares traded at $23.58 Friday against a 52-week range of $17.42-$25.18.

Branded retail sales rose from $585.8 million to $657 million, store brand retail declined from $151 million to $A136.6 million and non-retail and other dropped from $229.6 million to $195.9 million.

"Our record third quarter reflects a favorable operating environment for our branded retail business and our continued focus on achieving our strategic priorities," Ryals McMullian, president and CEO, said in the release. "The impact of the COVID-19 pandemic persisted in the third quarter, though at more moderate levels than in the second quarter."

"We are capitalizing on the increased frequency of in-home eating, which has driven elevated trial of our market-leading products, by executing on our portfolio strategy and supply chain optimization initiatives," he added. "We expect the demand environment to continue to moderate, but we believe our focus on product quality, innovation and marketing will allow us to retain many of these new consumers and drive improved sales growth and margin expansion in support of our long-term growth targets."

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