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Jul 15, 2023
Flowers Foods Q2 2023 Earnings Report
Flowers Foods reported record second-quarter sales driven by portfolio strategy and team execution.
Key Takeaways
Flowers Foods reported an 8.8% increase in sales, reaching a second-quarter record of $1.228 billion. Net income increased by 18.8% to $63.8 million, with diluted EPS increasing to $0.30. The company is adjusting its fiscal 2023 guidance to reflect this strong performance.
Sales increased by 8.8% to a second quarter-record $1.228 billion.
Net income increased 18.8% to $63.8 million.
Adjusted EBITDA increased 10.9% to $133.1 million, representing 10.8% of sales.
Diluted EPS increased $0.05 to $0.30.
Flowers Foods
Flowers Foods
Flowers Foods Revenue by Segment
Revenue by Segment
Branded Retail Revenue
CapyFin.com Forward Guidance
For the 52-week Fiscal 2023, the Company expects sales in the range of approximately $5.095 billion to $5.141 billion, Adjusted EBITDA in the range of approximately $503 million to $528 million, and Adjusted diluted EPS in the range of approximately $1.18 to $1.25.
Positive Outlook
- Sales in the range of approximately $5.095 billion to $5.141 billion, representing an increase of approximately 6.0% to 7.0% compared to the prior year period.
- Adjusted EBITDA in the range of approximately $503 million to $528 million, compared to prior guidance of $494 million to $528 million.
- Adjusted diluted EPS in the range of approximately $1.18 to $1.25, compared to prior guidance of $1.15 to $1.25.
- Depreciation and amortization in the range of $155 million to $160 million, compared to prior guidance of $160 million to $165 million
- An effective tax rate of approximately 24%, compared to prior guidance of approximately 25%
Challenges Ahead
- Net interest expense of approximately $16 million to $18 million, compared to prior guidance of $9 million to $13 million
- Weighted average diluted share count for the year of approximately 213 million shares
- Capital expenditures in the range of $145 million to $155 million, with $30 million to $40 million related to the ERP upgrade, compared to prior guidance of $140 million to $150 million
- Consumers continue to seek value, though we are seeing some early indications that they may be acclimating to higher prices and reverting toward prior purchasing behavior.
- Disruptions in our direct-store-delivery distribution model, including litigation or an adverse ruling by a court or regulatory or governmental body that could affect the independent contractor classifications of the independent distributor partners