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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%.
Flowers Foods
Flowers Foods
Flowers Foods Revenue by Segment
Revenue by Segment
Branded Retail Revenue
CapyFin.com 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