Flowers Foods Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.55%.
Did FLO Beat Earnings? Q1 2025 Results
Flowers Foods delivered a disappointing first quarter for fiscal 2025, missing Wall Street expectations as softening consumer demand and acquisition-related costs weighed on results. The packaged bakery giant posted adjusted diluted EPS of $0.35, falling short of the $0.37 consensus estimate by 5.41%, while net sales slipped 1.4% year-over-year to $1.55 billion for the 16-week period ended April 19, 2025. The top-line decline was driven by a 2.7% volume drop and pricing and mix weakness, as increased promotional activity across the Branded Retail segment pressured the company's core business. The recently completed Simple Mills acquisition provided a 1.6% sales offset but added meaningful interest expense and amortization costs that burdened earnings. Looking ahead, management trimmed full-year adjusted diluted EPS guidance to $1.05 to $1.15 from a prior range of $1.11 to $1.24, also flagging a potential tariff headwind of up to $30 million as an additional risk to the outlook for the remainder of fiscal 2025.
- Moderating ingredient costs improved production cost ratio by 50 basis points
- Simple Mills acquisition contributed $24.3 million in net sales and $3.6 million to adjusted EBITDA
- Greater than expected category declines pressured volumes
- Higher interest expense from debt issued for Simple Mills acquisition
- Increased promotional activity in Branded Retail weighed on pricing/mix
- Higher workforce-related costs and vehicle rent expense increased SD&A
“Despite economic uncertainty and greater than expected category declines in the first quarter, Flowers' performance underscores the importance of our leading brands, each of which maintained or gained unit and dollar share.”
Flowers Foods CEO, on the earnings call
Forward Guidance & Outlook
Flowers Foods lowered its full-year fiscal 2025 guidance. Net sales are now expected at approximately $5.297 billion to $5.395 billion (3.8% to 5.7% growth), down from prior guidance of $5.403 billion to $5.487 billion. Excluding Simple Mills, organic net sales are expected at $5.079 billion to $5.170 billion (-0.5% to 1.3% growth). Adjusted EBITDA is expected at $534 million to $562 million, down from $560 million to $591 million. Adjusted diluted EPS is expected at $1.05 to $1.15, reduced from $1.11 to $1.24. The 53rd week is expected to contribute approximately $70 million to $80 million in net sales and $0.02 to adjusted diluted EPS. Simple Mills is expected to contribute $218 million to $225 million in net sales, $30 million to $33 million in adjusted EBITDA, and ($0.08) to ($0.07) in adjusted diluted EPS. Guidance assumptions include D&A of $170 million to $175 million, net interest expense of $63 million to $68 million, an effective tax rate of approximately 25%, weighted average diluted shares of approximately 212.3 million, and capital expenditures of $140 million to $150 million. The revised outlook reflects first quarter performance, the challenging consumer environment, and potential for increased tariff costs.
FLO YoY Financials
FLO Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.