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Apr 19
Flowers Foods Q1 2025 Earnings Report
Flowers Foods reported a decline in both net income and sales for the first quarter of 2025, despite a modest increase in adjusted EBITDA.
Key Takeaways
Flowers Foods faced weaker category performance and reduced volumes in Q1 2025, leading to declines in sales and net income, though adjusted EBITDA improved slightly. The acquisition of Simple Mills added revenue but also contributed a net loss.
Net sales declined 1.4% to $1.554 billion due to pricing/mix and volume reductions despite Simple Mills acquisition.
Net income dropped 27.4% to $53.0 million, driven by reduced sales, higher SD&A and interest expenses.
Adjusted EBITDA rose 1.6% to $162.0 million, showing resilience amidst broader headwinds.
Simple Mills contributed $24.3 million in revenue but incurred a $4.2 million net loss.
Flowers Foods
Flowers Foods
Flowers Foods Revenue by Segment
Revenue by Segment
Branded Retail Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Flowers Foods revised its full-year 2025 guidance downward, accounting for a challenging consumer environment, tariff risk, and contributions from the Simple Mills acquisition.
Positive Outlook
- Adjusted EBITDA expected between $534M and $562M
- Net sales guided to $5.297B–$5.395B including Simple Mills impact
- Simple Mills expected to contribute $218M–$225M to FY25 net sales
- 53rd week to add $70M–$80M in sales and $5M–$7M to adjusted EBITDA
- Adjusted EPS forecasted between $1.05 and $1.15
Challenges Ahead
- Guidance reduced from previous estimates across net sales and EBITDA
- Net sales excluding Simple Mills expected to decline or grow minimally (-0.5% to 1.3%)
- Adjusted EPS reduced from prior $1.11–$1.24 range
- Simple Mills contribution to adjusted EPS expected to be negative ($0.08 to $0.07)
- Potential for increased tariff-related costs cited as headwind
Revenue & Expenses
Visualization of income flow from segment revenue to net income