Vending

Flowers Foods reports Q3 2021 sales gain, earnings dip

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November 12, 2021

Flowers Foods Inc., which owns the Mrs. Freshleys brand sold in vending, reported lower earnings on higher sales for the third quarter ending Oct. 9, 2021, according to an earnings release.

Sales increased 3.9% from $989.6 million in Q3 2020 to $1.03 billion.

Net income decreased 12.4% from $44.3 million to $38.9 million in the comparative quarters due primarily to legal settlements. Adjusted net income increased 3.9% to $64.9 million due to higher sales which drove cost leverage of certain items and lower interest expense, partially offset by increased marketing investment and transportation costs.

Net income per diluted common share fell from 21 cents to 18 cents, while adjusted income per diluted common share rose from 29 cents to 30 cents.

Branded retail sales increased $31.6 million or 4.8% to $689.1 million, store branded retail sales decreased $11.5 million or 8.5% to $124.6 million, while non-retail and other sales increased $18.1 million or 9.2% to $214.2 million.

The $1.03 billion in quarterly revenue beat analyst expectations by $20 million while the non-GAAP EPS of 30 cents beat expectations by 5 cents and the GAAP EPS of 18 cents missed expectations by 4 cents, according to Seeking Alpha.

Shares traded at $25.50 Thursday against a 52-week range of $21.66-$25.75.

"I'm pleased to report another record third quarter," Ryals McMullian, president and CEO, said in the press release. "We generated sales and earnings above our strong year-ago results as our leading brands gained market share and our non-retail business steadily recovers from the effects of the pandemic."

The new guidance represents an increase over prior guidance of approximately $4.256 billion to $4.3 billion. This change includes a 1.8% reduction in sales due to one fewer week in fiscal 2021.