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Apr 24, 2021
Flowers Foods Q1 2021 Earnings Report
Flowers Foods' Q1 2021 financial performance reflected a decrease in sales but an increase in net income, driven by strategic investments and operational efficiencies.
Key Takeaways
Flowers Foods reported a decrease in sales by 3.5% to $1.302 billion compared to the prior year, which was impacted by the pandemic. Net income increased significantly to $71.7 million due to a prior year charge related to pension plan termination. Adjusted diluted EPS was $0.41, consistent with the prior year.
Sales decreased by 3.5% to $1.302 billion due to moderated branded retail mix and foodservice recovery as the economy reopened.
Net income increased to $71.7 million, primarily due to a $116.2 million charge in the prior year related to pension plan termination.
Adjusted EBITDA decreased slightly by 1.0% to $161.6 million, representing 12.4% of sales.
Branded retail sales decreased by 3.3% to $861.4 million, while non-retail and other sales increased by 3.6% to $277.9 million.
Revenue by Segment
Forward Guidance
For the 52-week fiscal year 2021, Flowers Foods expects sales to range from approximately $4.234 billion to $4.300 billion, representing a change of approximately -3.5% to -2.0%. Diluted EPS is expected to be in the range of approximately $1.10 to $1.17.
Positive Outlook
- Sales expected to be in the range of $4.234 billion to $4.300 billion.
- Diluted EPS expected to be in the range of $1.10 to $1.17.
- Depreciation and amortization in the range of $135 million to $140 million.
- Net interest expense of approximately $10 million.
- Weighted average diluted share count for the year of approximately 213 million shares.
Challenges Ahead
- Sales change includes a 1.8% reduction due to one fewer week in fiscal 2021.
- One fewer week in fiscal 2021 impacts EPS by approximately $0.02.
- Effective tax rate of approximately 24.5%.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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