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Oct 09, 2021

Flowers Foods Q3 2021 Earnings Report

Flowers Foods reported third quarter results with sales and earnings generated above year-ago results.

Key Takeaways

Flowers Foods reported a 3.9% increase in sales, reaching $1.028 billion, and a net income of $38.9 million. The company raised its 2021 sales and earnings guidance due to strong year-to-date performance.

Sales increased 3.9% to $1.028 billion.

Net income decreased 12.4% to $38.9 million.

Adjusted diluted EPS increased to $0.30.

The company is raising its 2021 sales and earnings guidance.

Total Revenue
$1.03B
Previous year: $990M
+3.9%
EPS
$0.3
Previous year: $0.29
+3.4%
Pricing/Mix Change
6.4%
Previous year: 8.1%
-21.0%
Sales Volume Change
-2.5%
Previous year: -5.7%
-56.1%

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 $4.300 billion to $4.344 billion and Diluted EPS in the range of approximately $1.22 to $1.26.

Positive Outlook

  • Sales in the range of approximately $4.300 billion to $4.344 billion.
  • The new sales guidance represents an increase over prior guidance of approximately $4.256 billion to $4.300 billion.
  • Diluted EPS in the range of approximately $1.22 to $1.26.
  • EPS guidance includes a $0.01 impact in the fourth quarter for appreciation bonuses to be paid to frontline workers.
  • Depreciation and amortization in the range of $135 million to $140 million

Challenges Ahead

  • Sales represent a decrease of approximately 1.0% to 2.0% compared to the prior year period.
  • 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.
  • Net interest expense of approximately $8 million
  • An effective tax rate of approximately 24.5%