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Jul 12, 2025
Flowers Foods Q2 2025 Earnings Report
Flowers Foods posted a slight increase in revenue in Q2 2025, supported by the Simple Mills acquisition despite ongoing margin pressures.
Key Takeaways
Revenue rose 1.5% year-over-year to $1.24 billion, while net income declined 12.8% amid higher costs and interest expense. Adjusted EPS came in at $0.30.
Revenue increased to $1.24B, up 1.5% YoY due to the Simple Mills acquisition.
Net income fell 12.8% to $58.4M, primarily due to increased outside purchases and workforce-related costs.
Adjusted EBITDA decreased 4.0% to $137.7M, with a margin of 11.1%.
Simple Mills contributed $61.4M in sales but had a net loss of $2.1M for the quarter.
Revenue by Segment
Forward Guidance
For FY25, net sales are expected between $5.239B and $5.308B with adjusted EPS ranging from $1.00 to $1.10.
Positive Outlook
- Simple Mills expected to contribute $218M–$225M to full-year sales.
- 53rd week to add $70M–$80M in additional sales.
- Strong focus on cost savings and operational efficiency.
- Adjusted EBITDA projected between $512M and $538M.
- Strategic shift toward better-for-you and value-oriented products.
Challenges Ahead
- Lower-than-expected Q2 revenues prompted downward revision in guidance.
- Ongoing weakness in traditional loaf bread sales.
- Increased competition expected to persist through FY25.
- Higher interest expenses from acquisition-related debt.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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