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Flowers Foods
🇺🇸 NYSE:FLO
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Apr 18, 2020

Flowers Foods Q1 2020 Earnings Report

Flowers Foods reported a record quarter in terms of sales and earnings, driven by increased retail demand amidst the COVID-19 pandemic.

Key Takeaways

Flowers Foods reported a 6.8% increase in sales to $1.349 billion for the first quarter of 2020. Diluted EPS resulted in a loss of $0.03, while adjusted diluted EPS increased to $0.41. The company's retail business benefited from increased demand, while the foodservice sector was pressured by restaurant sales slowdown.

Sales increased by 6.8% to $1.349 billion, including a COVID-19 impact of 6.5% to 7.5%.

Diluted EPS decreased to a loss of $0.03, impacted by a $0.41 per share charge related to pension plan termination.

Adjusted diluted EPS increased by $0.09 to $0.41, with a $0.09 to $0.10 increase attributable to COVID-19.

Branded retail sales increased by 17.7%, while non-retail and other sales decreased by 15.0%.

Total Revenue
$1.35B
Previous year: $1.26B
+6.7%
EPS
$0.41
Previous year: $0.32
+28.1%
Pricing/Mix Change
6.2%
Sales Volume Change
0.6%
Gross Profit
$679M
Previous year: $612M
+10.9%
Cash and Equivalents
$253M
Previous year: $11.6M
+2081.3%
Free Cash Flow
$84.5M
Previous year: $75.4M
+12.0%
Total Assets
$3.41B
Previous year: $3.24B
+5.4%

Flowers Foods

Flowers Foods

Flowers Foods Revenue by Segment

Forward Guidance

For the 53-week Fiscal 2020, the Company Expects: Sales in the range of approximately $4.206 billion to $4.289 billion, representing growth of approximately 2.0% to 4.0%. Diluted EPS in the range of approximately $0.57 to $0.65, including a $0.41 per share charge related to the termination of a defined benefit pension plan. Adjusted diluted EPS in the range of approximately $1.00 to $1.08, adjusted for items affecting comparability, representing growth of approximately 4.2% to 12.5%.

Positive Outlook

  • Sales in the range of approximately $4.206 billion to $4.289 billion, representing growth of approximately 2.0% to 4.0%.
  • Adjusted diluted EPS in the range of approximately $1.00 to $1.08, adjusted for items affecting comparability, representing growth of approximately 4.2% to 12.5%.
  • Portfolio and supply chain optimization benefit of $10 million to $20 million
  • Depreciation and amortization in the range of $140 million to $145 million
  • Net interest expense in the range of $8 million to $10 million

Challenges Ahead

  • Diluted EPS in the range of approximately $0.57 to $0.65, including a $0.41 per share charge related to the termination of a defined benefit pension plan.
  • Other pension expense of approximately $2 million
  • An effective tax rate of approximately 24%
  • Weighted average diluted share count for the year of approximately 212.5 million shares
  • Capital expenditures for the year in the range of $95 million to $105 million

Company Overview

Full financial data and analysis

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