Flowers Foods reports record Q4, FY 2022 sales

Flowers Foods Inc., which owns Mrs Freshley's, Tatykake, Nature's Own and other brands, reported record Q4 and FY 2022 sales, according to a press release.

Highlights include:

• Sales increased 10.1%, from $983.5 million in Q4 2021 to a quarter-record $1.083 billion for the quarter ending Dec. 31, 2022. Pricing/mix increased 16.7% while volume declined 6.6%.
• Net income increased 23.6%, from $39.3 million to $48.6 million in the comparative quarters.
• Adjusted net income increased 14.9%, from $41.9 million to $48.1 million.
• Diluted EPS increased from 18 cents to 23 cents.
• Adjusted diluted EPS increased from 20 cents to 23 cents.
• Branded retail sales rose 7.6%, to $49.3 million, due to higher prices to offset inflationary pressures, partially offset by volume declines.
• Other sales rose 14.8%, to $383.9 million due to higher prices to offset inflationary pressures and partially offset by volume declines in foodservice.
• Full year sales increased 11%, from $4.33 billion in 2021 to a record $4.806 billion in 2022.
• Full year net income increased 10.8%, from $206.2 million to $228.4 million.
• Full year adjusted net income increased 3%, from $263.1 million to $271 million.
• Full year diluted EPS increased from 97 cents to $1.07.
• Full year adjusted diluted EPS increased from $1.24 to $1.27.

Shares traded today at $27.88 against a 52-week range of $24.15-$30.16.

The approximately $1.08 billion in quarterly revenue missed analyst expectations by $20 million while the non-GAAP EPS of 23 cents was in line with expectations, according to Seeking Alpha.

"Our record fourth quarter and fiscal year 2022 sales highlight the flexibility of our business model and strong execution by our Flowers team," Ryals McMullian, president and CEO of Flowers Foods, said in the press release. "We have taken steps to adapt and respond to the inflationary environment by implementing price increases, improving the profitability of our lower-margin products and increasing the attractiveness of our branded portfolio through innovation. We have also entered into an agreement to acquire Papa Pita Bakery, which we expect to provide additional capacity for our growth products and expand our geographic reach."