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Oct 07, 2023
Flowers Foods Q3 2023 Earnings Report
Flowers Foods reported third quarter 2023 results with record sales and a net loss due to increased legal settlement expense.
Key Takeaways
Flowers Foods reported a 3.5% increase in sales to a record $1.199 billion for the third quarter of 2023. However, the company experienced a net loss of $46.7 million due to increased legal settlement expenses, despite an increase in adjusted EBITDA by 0.6% to $121.2 million.
Sales increased 3.5% to a third-quarter record of $1.199 billion.
Net income decreased $87.3 million, resulting in a net loss of $46.7 million, primarily due to increased legal settlement expense.
Adjusted EBITDA increased 0.6% to $121.2 million, representing 10.1% of sales.
Diluted EPS decreased $0.41 to a loss of $0.22, while adjusted diluted EPS decreased $0.01 to $0.29.
Flowers Foods
Flowers Foods
Flowers Foods Revenue by Segment
Revenue by Segment
Branded Retail Revenue
CapyFin.com Forward Guidance
For the 52-week Fiscal 2023, the company expects sales in the range of approximately $5.085 billion to $5.104 billion and Adjusted EBITDA in the range of approximately $495 million to $515 million. Diluted EPS is expected to be in the range of $0.60 to $0.67, with adjusted diluted EPS in the range of approximately $1.18 to $1.25.
Positive Outlook
- Sales in the range of approximately $5.085 billion to $5.104 billion, representing an increase of approximately 5.8% to 6.2% compared to the prior year period.
- Adjusted EBITDA in the range of approximately $495 million to $515 million.
- Diluted EPS in the range of $0.60 to $0.67.
- Adjusted diluted EPS in the range of approximately $1.18 to $1.25.
- Depreciation and amortization in the range of $150 million to $155 million.
Challenges Ahead
- Prior guidance called for sales of approximately $5.095 billion to $5.141 billion, representing an increase of approximately 6.0% to 7.0% compared to the prior year period.
- Prior guidance of Adjusted EBITDA in the range of $503 million to $528 million.
- Capital expenditures in the range of $135 million to $145 million, with $25 million to $35 million related to the ERP upgrade.
- Prior guidance of Capital expenditures in the range of $145 million to $155 million, with $30 million to $40 million related to the ERP upgrade.
- Net interest expense of approximately $16 million to $18 million