Flowers Foods (FLO) Q1 Earnings Missed Estimates, Sales Up Y/Y

Core Viewpoint - Flowers Foods, Inc. reported mixed results for the first quarter of fiscal 2024, with earnings missing estimates while sales increased year over year [1][5]. Financial Performance - Adjusted earnings per share (EPS) were 38 cents, missing the Zacks Consensus Estimate of 40 cents, but in line with the previous year's figure [4]. - Sales rose by 2.8% year over year to $1,576.8 million, although this was below the consensus estimate of $1,578.4 million [5]. - Branded Retail sales increased by 3.5% to $1,014.9 million, driven by improved pricing and acquisitions [6]. Cost and Margin Analysis - Production costs decreased by 160 basis points to 50.6% of sales, aided by moderating ingredient costs and inflation-related pricing actions [7]. - Selling, distribution, and administrative expenses rose to 39.7% of sales, primarily due to higher labor and technology costs [8]. - Adjusted EBITDA grew by 5.5% to $159.4 million, with an adjusted EBITDA margin of 10.1%, expanding by 30 basis points [8]. Financial Position - As of the end of the fiscal first quarter, the company had cash and cash equivalents of $15.8 million and long-term debt of $1,043.5 million [9]. - Cash flow from operating activities was $105.1 million, with capital expenditures of $33.3 million and dividends paid amounting to $51.1 million [9]. Fiscal 2024 Guidance - The company anticipates sales between $5.091 billion and $5.172 billion, indicating flat to a 1.6% increase year over year [11]. - Adjusted EBITDA is expected to range from $524 million to $553 million, compared to $501.7 million in fiscal 2023 [11]. - Adjusted EPS is projected to be between $1.20 and $1.30, consistent with the previous year's figure [11].