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Oct 03, 2020
Flowers Foods Q3 2020 Earnings Report
Flowers Foods reported increased sales and net income in Q3 2020, driven by a favorable operating environment for its branded retail business.
Key Takeaways
Flowers Foods reported a 2.4% increase in sales to $989.7 million and a 2.3% increase in net income to $44.3 million for the third quarter of 2020. The company benefited from increased in-home eating and executed its portfolio strategy and supply chain optimization initiatives.
Sales increased 2.4% to $989.7 million.
Net income increased 2.3% to $44.3 million.
Adjusted EBITDA increased 22.4% to $116.4 million, representing 11.8% of sales.
Diluted EPS increased $0.01 to $0.21.
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 $4.350 billion to $4.370 billion, representing growth of approximately 5.5% to 6.0%. Diluted EPS in the range of approximately $0.65 to $0.70. Adjusted diluted EPS in the range of approximately $1.23 to $1.28, adjusted for items affecting comparability, representing annual growth of approximately 28.1% to 33.3%.
Positive Outlook
- Sales in the range of approximately $4.350 billion to $4.370 billion, representing growth of approximately 5.5% to 6.0%.
- Diluted EPS in the range of approximately $0.65 to $0.70.
- Adjusted diluted EPS in the range of approximately $1.23 to $1.28, adjusted for items affecting comparability, representing annual growth of approximately 28.1% to 33.3%.
- Portfolio and supply chain optimization benefit in excess of $20 million.
- Depreciation and amortization in the range of $140 million to $145 million.
Challenges Ahead
- 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
- Capital expenditures for the year in the range of $85 million to $95 million
- No specific negatives were mentioned.