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Flowers Foods reports fourth quarter and full year 2024 results
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Saturday, 22 February, 2025, 13 : 00 PM [IST]
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Georgia, USA
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Flowers Foods Inc., has reported financial results for the company’s 12-week fourth quarter and 52-week fiscal year ended December 28, 2024.
Fourth Quarter Summary: Compared to the prior year fourth quarter where applicable - Net sales decreased 1.6% to $1.111 billion as positive pricing/mix was more than offset by volume declines. Net income increased 20.9% to $43.1 million, representing 3.9% of sales, a 70-basis point increase, primarily due to higher operating income resulting from moderating ingredient costs, optimisation of our non-retail business, cost savings initiatives, and a decrease in impairment of assets, partially offset by reduced sales. Adjusted net income increased 8.7% to $46.4 million. Adjusted EBITDA increased 6.3% to $102.4 million, representing 9.2% of net sales, a 70-basis point increase. Diluted EPS increased $0.03 to $0.20. Adjusted diluted EPS increased $0.02 to $0.22.
Fiscal 2024 Summary: Compared to the prior year where applicable - Net sales increased 0.2% to $5.103 billion as positive pricing/mix and the Papa Pita acquisition more than offset volume declines. Net income increased 101% to $248.1 million, representing 4.9% of sales, a 250-basis point increase, primarily due to higher operating income resulting from a decrease in legal settlements and related costs and moderating ingredient costs, and, to a lesser extent, benefits of optimisation and cost savings initiatives. Increased workforce-related costs and a higher effective income tax rate partially offset the improvement. Adjusted net income increased 6.0% to $271.6 million. Adjusted EBITDA increased 7.3% to $538.5 million, representing 10.6% of net sales, a 70-basis point increase. Diluted EPS increased $0.59 to $1.17. Adjusted diluted EPS increased $0.08 to $1.28.
Ryals McMullian, chairman and CEO of Flowers Foods, said, “Flowers’ strong execution of our portfolio strategy and cost savings initiatives drove fourth quarter and full year 2024 adjusted EPS growth in a difficult economic environment. Investments in innovation and in-store operations enabled a solid market share performance from our leading brands despite sales results that fell short of expectations. Furthermore, margins benefited from improved pricing and the addition of profitable new accounts in our away-from-home business combined with a positive mix shift toward higher-margin products within branded retail.”
“We expect continued strong execution as we navigate a difficult economic environment in 2025. First-half results are expected to benefit from the carryover of new business wins and savings and pricing initiatives, as well as moderating commodity costs. Our outlook for the back half incorporates the lapping of those benefits, commodity cost headwinds, and continued challenging category trends. We are excited about the pending acquisition of Simple Mills, which is expected to be accretive to adjusted EBITDA in 2025, but dilutive to adjusted EPS. The addition of this fast-growing, better-for-you brand is emblematic of our focus on targeting pockets of opportunity within and beyond our existing categories. Our M&A capabilities, combined with the implementation of our portfolio strategy and other actions, gives us continued confidence in our ability to drive future growth consistent with our long-term financial targets,” concluded McMullian.
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