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Oct 08, 2022
Flowers Foods Q3 2022 Earnings Report
Flowers Foods' Q3 2022 results showcased record sales and increased net income, driven by strong brand performance and effective inflation mitigation.
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
Revenue by Segment
Branded Retail Revenue
CapyFin.com 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