Vending

Flowers Foods Q4 2020 sales and earnings soar

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February 12, 2021

Flowers Foods Inc., which owns the Mrs. Freshley's brand, boosted its sales 11.5% from $917.8 million in Q4 2019 to $1.02 billion for the quarter ending Jan. 2, 2021, according to a press release.

Sales for the 53-week period ending Dec. 28, 2019 of $4.12 billion rose to $4.28 billion for the 53-week period ending Jan. 2, 2021.

Net income rose from $42.6 million in Q4 2019 to %55.8 million in Q4 2020, while adjusted net income rose to $59.1 million.

Net income per diluted common share rose from 1 cent Q4 2019 to 26 cents in Q4 2020, and adjusted income per diluted common share rose from 18 cents to 28 cents.

The Q4 sales beat analyst expectations by $34.16 million, according to Seeking Alpha, and the 28 cents adjusted EPS beat expectations by 4 cents.

Shares traded at $22.16 today against a 52-week range of $17.29-$24.74.

"I am pleased to report fiscal 2020 adjusted earnings above the high end of our guidance," Ryals McMullian, president and CEO, said in the press release. "The positive mix shift and the extra week boosted results, and our team leveraged those tailwinds by taking steps to maximize our performance in the near-term and beyond."

Higher branded retail sales offset the decline in store-branded retail sales as well as non-retail and other sales.

Branded retail sales rose 22.6% to $675.6 million driven by positive mix shift to branded retail products thanks to the pandemic, new product launches, greater promotional efficiency as well as reduced product returns.

Store-branded retail sales fell 2.6% to $137 million mainly due to decline in volumes as consumer purchasing shifted to branded retail products.

Non-retail and other sales declined 6.8% to $210.5 million mainly due to adverse impacts on foodservice customers amid COVID-19.

Management has projected sales in the range of $4.21-$4.3 billion for fiscal 2021, suggesting a decline of about 4%-2% year over year, which includes a 1.8% sales reduction owing to one less week in fiscal 2021.

Further, EPS is projected in the range of $1.07-$1.17 that includes an effect of nearly 2 cents from one fewer week in fiscal 2021.

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