Flowers Foods Q2 2020 Earnings Report
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
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.