Vending

Flowers Foods surpasses Q2 expectations

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August 12, 2022

Flowers Foods Inc., which owns Tastykake, Nature's Own and other brands, improved its Q2 2022 sales against the prior year period and beat analyst expectations, despite an earnings decline, according to a press release. Highlights include:

• Sales increased 11% from $1.02 billion in Q2 2021 to a record $1.13 billion in the quarter ending July 15, 2022, surpassing the previous record second quarter results in 2020 that were influenced by the pandemic.
• Net income fell from $56.4 million to $53.7 million in the comparative quarters.
• Adjusted net income per diluted common share fell from 32 cents to 31 cents.
• Net income per diluted common share fell from 26 cents to 24 cents.
• Branded retail sales increased 9.1% to $735.9 million, store branded retail sales increased 20% to $157.2 million, while non-retail and other sales increased 11.4% to $235.9 million.
• Branded retail sales increased due to higher prices intended to offset inflationary pressures, partially offset by volume declines and sales mix reversion.
• Store branded retail sales increased primarily due to higher prices intended to offset inflationary pressures.

Shares traded Friday at $27.83 against a 52-week range of $22.78-$29.73.

The quarterly revenue of $1.13 billion beat analyst expectations by $10 million, while the non-GAAP EPS of 31 cents beat expectations by 4 cents, according to Seeking Alpha.

"I am very pleased with our record second quarter sales results, an achievement that reflects the strength of our leading brands and outstanding commitment of our dedicated Flowers team," Ryals McMullian, president and CEO, said in the press release.

The company expects its 2022 EPS to be between $1.16-$1.21 versus the consensus of $1.24.