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Jul 11, 2020
Flowers Foods Q2 2020 Earnings Report
Flowers Foods reported record results, driven by strong demand for branded retail products and effective cost management.
Key Takeaways
Flowers Foods reported a strong second quarter with a 5.1% increase in sales to $1.026 billion and an increase in diluted EPS to $0.27. The company benefited from a mix shift to branded retail products and is focused on portfolio and supply chain optimization to drive future growth.
Sales increased by 5.1% to $1.026 billion, driven by the COVID-19 pandemic.
Diluted EPS increased to $0.27, a $0.02 increase.
Adjusted diluted EPS increased to $0.33, a $0.08 increase.
Branded retail sales increased by 17.7% to $689.5 million due to the pandemic and new product introductions.
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 $4.290 billion to $4.330 billion, representing growth of approximately 4.0% to 5.0%, and adjusted diluted EPS in the range of approximately $1.15 to $1.25, representing growth of approximately 19.8% to 30.2%.
Positive Outlook
- Sales in the range of approximately $4.290 billion to $4.330 billion, representing growth of approximately 4.0% to 5.0%.
- Diluted EPS in the range of approximately $0.66 to $0.76.
- Adjusted diluted EPS in the range of approximately $1.15 to $1.25, adjusted for items affecting comparability, representing growth of approximately 19.8% to 30.2%.
- Portfolio and supply chain optimization benefit of $10 million to $20 million.
- Capital expenditures for the year in the range of $85 million to $95 million.
Challenges Ahead
- Depreciation and amortization in the range of $145 million to $150 million.
- Net interest expense of approximately $11 million.
- An effective tax rate of approximately 24.0% to 24.5%.
- Weighted average diluted share count for the year of approximately 212.5 million shares.
- Balancing higher demand with increased costs and uncertainty.