Flowers Foods Q3 2022 Earnings Report
Key Takeaways
Flowers Foods reported a 12.7% increase in sales, reaching a quarter-record of $1.158 billion. Net income also increased by 4.3% to $40.5 million. The company's performance was driven by strong results from its number one brands and successful initiatives to mitigate inflationary impacts.
Sales increased 12.7% to a quarter-record $1.158 billion.
Net income increased 4.3% to $40.5 million.
Adjusted diluted EPS was consistent with the prior year period at $0.30.
Branded retail sales increased $59.4 million or 8.6% to $748.4 million.
Flowers Foods
Flowers Foods
Flowers Foods Revenue by Segment
Forward Guidance
For the 52-week Fiscal 2022, the Company Expects: Sales in the range of approximately $4.807 billion to $4.850 billion, representing an increase of approximately 11.0% to 12.0% compared to the prior year period. Adjusted EPS in the range of approximately $1.25 to $1.30.
Positive Outlook
- Sales in the range of approximately $4.807 billion to $4.850 billion, representing an increase of approximately 11.0% to 12.0% compared to the prior year period.
- Prior guidance called for sales of $4.764 billion to $4.850 billion, representing an increase of approximately 10% to 12%.
- Adjusted EPS in the range of approximately $1.25 to $1.30.
- Depreciation and amortization in the range of $140 million to $145 million
- Net interest expense of approximately $7 million
Challenges Ahead
- An effective tax rate in the range of 24.0% to 24.5%
- Weighted average diluted share count for the year of approximately 213.5 million shares
- Capital expenditures in the range of $150 million to $160 million, with $60 million to $70 million related to the ERP upgrade
- Materials, supplies, labor, and other production costs increased as a percentage of sales due to input cost inflation
- Volume declines in foodservice