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Dec 28, 2024
Flowers Foods Q4 2024 Earnings Report
Flowers Foods' Q4 2024 results were reported, featuring a decrease in net sales but increases in net income and adjusted EBITDA.
Key Takeaways
Flowers Foods reported a decrease in net sales by 1.6% to $1.111 billion in Q4 2024, but net income increased by 20.9% to $43.1 million and adjusted EBITDA increased by 6.3% to $102.4 million. The company's performance was driven by positive pricing/mix offsetting volume declines, moderating ingredient costs, optimization of the non-retail business, and cost savings initiatives.
Net sales decreased 1.6% to $1.111 billion due to volume declines offsetting positive pricing/mix.
Net income increased 20.9% to $43.1 million, representing 3.9% of sales.
Adjusted EBITDA increased 6.3% to $102.4 million, representing 9.2% of net sales.
Diluted EPS increased $0.03 to $0.20, and adjusted diluted EPS increased $0.02 to $0.22.
Flowers Foods
Flowers Foods
Flowers Foods Revenue by Segment
Revenue by Segment
Branded Retail Revenue
CapyFin.com Forward Guidance
For the 53-week Fiscal 2025, the company expects net sales of approximately $5.403 billion to $5.487 billion, adjusted EBITDA in the range of approximately $560 million to $591 million, and adjusted diluted EPS in the range of approximately $1.11 to $1.24.
Positive Outlook
- Net sales of approximately $5.403 billion to $5.487 billion, representing 5.9% to 7.5% growth compared to the prior year.
- Excluding the Simple Mills acquisition, net sales of approximately $5.180 billion to $5.257 billion, representing 1.5% to 3.0% growth compared to the prior year.
- Adjusted EBITDA in the range of approximately $560 million to $591 million.
- Excluding the Simple Mills acquisition, adjusted EBITDA in the range of approximately $526 million to $554 million.
- Adjusted diluted EPS in the range of approximately $1.11 to $1.24.
Challenges Ahead
- The partial-year benefit of the Simple Mills acquisition is expected to be ($0.07) to ($0.04) dilutive to adjusted EPS.
- The outlook for the back half incorporates the lapping of benefits, commodity cost headwinds, and continued challenging category trends.
- First-half results are expected to benefit from the carryover of new business wins and savings and pricing initiatives, as well as moderating commodity costs.
- Depreciation and amortization in the range of $175 million to $185 million.
- Net interest expense of approximately $60 million to $65 million.