Flowers Foods(US:FLO)2025-11-06 21:27Financial Performance - Net sales increased 3.0% to $1.227 billion, with a contribution of 5.9% from the Simple Mills acquisition[5] - Net income decreased 39.2% to $39.5 million, representing 3.2% of sales, a 230-basis point decrease[5] - Adjusted EBITDA decreased 11.4% to $118.1 million, representing 9.6% of net sales, a 160-basis point decrease[5] - The company expects net sales for the fiscal year to be in the range of $5.254 billion to $5.306 billion, representing 2.9% to 4.0% growth compared to the prior year[6] - Adjusted diluted EPS is projected to be approximately $1.02 to $1.08, with a contribution of ($0.08) to ($0.07) from the Simple Mills acquisition[6] - Branded Retail net sales increased 6.9% to $812.8 million, driven by the Simple Mills acquisition[9] - The company reported a net income of $39,534 for the 12-week period, down from $64,984 in the prior year, resulting in a diluted EPS of $0.19[24] - For the 12-week period ended October 4, 2025, net income per diluted common share was $0.19, compared to $0.31 for the same period in 2024, representing a decrease of 38.7%[32] - For the 40-week period ended October 4, 2025, net income per diluted common share was $0.71, down from $0.97 in the same period of 2024, a decrease of 26.8%[32] Cash Flow and Expenses - Cash flow from operating activities increased $38.5 million to $320.8 million year-to-date[8] - Selling, distribution, and administrative expenses were 38.8% of net sales, a 10-basis point increase[9] - Selling, distribution, and administrative expenses for the 12-week period ended October 4, 2025, were $475,952, compared to $460,359 in the same period of 2024, an increase of 3.9%[34] - The company incurred restructuring charges of $5,510 for the 12-week period, compared to no charges in the same period last year[24] - The company incurred acquisition and integration-related costs of $1,735 for the 12-week period ended October 4, 2025, compared to $0 in the same period of 2024[36] Sales and Market Performance - Net sales for the 12-week period ended October 4, 2025, were $1,226,554, representing a 3.0% increase from $1,190,561 in the same period last year[24] - Branded Retail sales increased by 6.9% to $812,760 for the 12-week period, while Other sales decreased by 3.8% to $413,794[28] - For the 40-week period ended October 4, 2025, total net sales were $4,023,619, a 0.8% increase from $3,992,362[28] - The company experienced a total percentage point change in net sales of 3.0% for Branded Retail and a decline of 3.8% for Other in the 12-week period[29] Adjusted Metrics - Adjusted EBITDA measures are used as the primary performance measure in the company's compensation plan, reflecting the importance of core operational insights[18] - Adjusted EBITDA for the 12-week period ended October 4, 2025, was $118,117, compared to $133,310 for the same period in 2024, indicating a decline of 11.4%[36] - The adjusted net income for the 12-week period ended October 4, 2025, was $48,677, down from $69,332 in the same period of 2024, a decrease of 29.8%[38] - The adjusted EBITDA margin for the 12-week period ended October 4, 2025, was 9.6%, compared to 11.2% for the same period in 2024, showing a decline of 1.6 percentage points[36] Debt and Cash Position - Long-term debt increased to $1,779,623 as of October 4, 2025, compared to $1,021,644 at the end of the previous year[21] - Cash and cash equivalents at the end of the period were $16,731, up from $5,005 at the end of the previous year[21] - Total depreciation and amortization for the 40-week period ended October 4, 2025, was $128,967, compared to $122,393 for the same period in 2024, an increase of 5.4%[36] Future Outlook - The company is narrowing its 2025 financial outlook to reflect greater certainty entering the fourth quarter[4] - The company expects adjusted net income per diluted common share for the full year fiscal 2025 to range from $1.02 to $1.08[38]