Flowers Foods(US:FLO) Prnewswire·2024-05-16 20:10Core Insights - Flowers Foods, Inc. reported a solid first quarter for fiscal 2024, with net income increasing by 3.3% to $73.0 million and sales rising by 2.8% to a record $1.577 billion, driven by effective portfolio strategy and marketing investments [2][5][12] Financial Performance - Sales reached $1.577 billion, marking a 2.8% increase compared to the previous year, with branded retail sales up 3.5% to $1.015 billion [5][22] - Net income rose to $73.0 million, while adjusted net income decreased slightly by 0.8% to $80.3 million [5][12] - Adjusted EBITDA increased by 5.5% to $159.4 million, representing 10.1% of sales, a 30-basis point increase [5][12][25] Operational Highlights - The company maintained its 2024 outlook, expecting continued volume improvement despite economic uncertainties [3] - The first quarter saw branded retail volumes grow for the first time since 2020, indicating a positive trend in market share [2][3] Cost Management - Materials, supplies, labor, and other production costs accounted for 50.6% of sales, a decrease of 160 basis points, attributed to moderating ingredient costs [5][7] - Selling, distribution, and administrative expenses increased to 39.7% of sales, reflecting higher labor and technology costs [5][7] Cash Flow and Capital Allocation - Cash flow from operating activities increased by $47.2 million to $105.1 million, while capital expenditures decreased slightly to $33.3 million [8][21] - Dividends paid to shareholders rose to $51.1 million, up by $2.0 million from the previous year [8][21] Future Guidance - The company expects full-year sales in the range of approximately $5.091 billion to $5.172 billion, indicating growth of 0.0% to 1.6% compared to the prior year [6] - Adjusted diluted EPS is projected to be in the range of approximately $1.20 to $1.30 for fiscal 2024 [6][27]