Flowers Foods Q2 2021 Earnings Report
Key Takeaways
Flowers Foods reported a decrease in sales by 0.8% to $1.017 billion, and a decrease in net income by 2.7% to $56.4 million, compared to the prior year second quarter. The diluted EPS decreased $0.01 to $0.26.
Sales decreased 0.8% to $1.017 billion compared to record results in the prior year period that were driven by the pandemic.
Net income decreased 2.7% to $56.4 million; adjusted net income decreased 1.7% to $68.8 million.
Adjusted EBITDA decreased 5.0% to $122.1 million, representing 12.0% of sales.
Diluted EPS decreased $0.01 to $0.26; adjusted diluted EPS decreased $0.01 to $0.32.
Flowers Foods
Flowers Foods
Flowers Foods Revenue by Segment
Forward Guidance
For the 52-week Fiscal 2021, the Company expects sales in the range of approximately $4.256 billion to $4.300 billion, and Diluted EPS in the range of approximately $1.17 to $1.22.
Positive Outlook
- Sales in the range of approximately $4.256 billion to $4.300 billion, representing a decrease of approximately 2.0% to 3.0% compared to the prior year period.
- The new guidance represents an increase over prior guidance of approximately $4.234 billion to $4.300 billion.
- Diluted EPS in the range of approximately $1.17 to $1.22, an increase over prior guidance of $1.10 to $1.17.
- Depreciation and amortization in the range of $135 million to $140 million
- Net interest expense of approximately $8 million
Challenges Ahead
- This change includes a 1.8% reduction in sales due to one fewer week in fiscal 2021.
- The effect of one fewer week in fiscal 2021 impacts EPS by approximately $0.02.
- An effective tax rate of approximately 24.5%
- Weighted average diluted share count for the year of approximately 213 million shares
- Capital expenditures for the year in the range of $125 million to $135 million