Financial Data and Key Metrics Changes - Net sales increased by 11% year-over-year, with a price mix contributing 70 basis points to this growth, while volume declined by 2.2% due to pressures in certain product lines [16][17] - Gross margin as a percentage of sales decreased by 30 basis points to 48.5%, influenced by increased outside purchases related to the Simple Mills business model [17] - GAAP diluted EPS for the quarter was a loss of $0.32, a decrease of $0.52 from the prior year, primarily due to a $136 million non-cash impairment of intangible assets [18][19] Business Line Data and Key Metrics Changes - The fresh packaged bread category saw Flowers maintain unit share, with Dave's Killer Bread gaining 20 basis points, while traditional loaf unit sales declined by 4% in Q4 [3][4] - The cake business experienced a 5% growth in unit sales, driven by the strength of the Wonder brand, despite a 3% decline in category unit sales [11] - Specialty premium loaf gained 60 basis points of unit share, largely driven by DKB, which added 50 basis points [10] Market Data and Key Metrics Changes - The overall bread category experienced a 2% decline, while the food category saw a modest increase in unit sales [4] - The competitive environment remained rational but challenging, with the average price per unit in the bread category rising by 1.1% [26] - Consumer behavior is shifting towards value-seeking, with increased sales in club stores and a decline in center store volumes [28][29] Company Strategy and Development Direction - The company is conducting a comprehensive review of operations to reignite top-line growth and expand margins, focusing on optimizing the brand portfolio and enhancing supply chain capabilities [4][5] - Investments in marketing and innovation are expected to create near-term margin pressure but are deemed essential for long-term growth [5][22] - The integration of Simple Mills is progressing well, with expectations for significant growth driven by innovation and expanded distribution [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2026, anticipating continued category headwinds, particularly in traditional loaf, and inflationary pressures on inputs [21][22] - The company plans to balance investments in leading brands with the need to manage costs and maintain profitability [22][30] - Management remains committed to navigating current challenges while positioning for future success through strategic initiatives [30] Other Important Information - The company generated cash flow from operating activities of $446 million in 2025, an increase of $34 million over the prior year [20] - Capital expenditures decreased to $127 million, while dividends paid increased to $209 million [20] - The company is focused on maintaining a strong balance sheet, with net debt to trailing 12-month adjusted EBITDA at approximately 3.3x [20] Q&A Session Summary Question: What are the expectations for 2026? - The company expects total sales to be down 180 basis points to up 20 basis points, with category headwinds anticipated to be around 4% [21] Question: How is the Simple Mills integration progressing? - The integration is progressing well, with expectations for double-digit sales growth driven by innovation and expanded distribution [24]

Financial Data and Key Metrics Changes - The company achieved a net sales increase of 11% year-over-year, with a price mix increase of 70 basis points, while volume declined by 2.2% [16][17] - Gross margin as a percentage of sales decreased by 30 basis points to 48.5%, influenced by increased outside purchases related to the Simple Mills business model [17] - GAAP diluted EPS for the quarter was a loss of $0.32, a decrease of $0.52 from the prior year, primarily due to a $136 million non-cash impairment of intangible assets [18][19] Business Line Data and Key Metrics Changes - The fresh packaged bread category saw Flowers maintain unit share, with Dave's Killer Bread gaining 20 basis points, while traditional loaf unit sales declined by 4% in Q4 [3][4] - The cake business experienced a 5% growth in unit sales, driven by Wonder's brand recognition, despite a 3% decline in category unit sales [11] - Specialty Premium Loaf gained 60 basis points of unit share, largely driven by DKB, which added 50 basis points [10] Market Data and Key Metrics Changes - The overall bread category experienced a 2% decline, while the food category saw a modest increase in unit sales [4] - The competitive environment remained rational but challenging, with a 1.1% increase in average price per unit in the bread category [26] - Consumer behavior is shifting towards value-seeking, with increased sales in club stores and a decline in center store volumes [28][29] Company Strategy and Development Direction - The company is conducting a comprehensive review of operations to reignite top-line growth and expand margins, focusing on brand portfolio optimization and supply chain enhancements [4][5] - Investments in marketing and innovation are expected to create near-term margin pressure but are deemed essential for long-term growth [5][22] - The integration of Simple Mills is progressing well, with expectations for significant growth driven by innovation and expanded distribution [12][24] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2026, anticipating continued category headwinds, particularly in traditional loaf, and inflationary pressures [21][22] - The company plans to balance investments in leading brands with the need to manage costs and maintain profitability [22][30] - Management emphasized the importance of adapting to consumer trends by prioritizing better-for-you products and innovative offerings [29][30] Other Important Information - The company generated cash flow from operating activities of $446 million in 2025, an increase of $34 million over the prior year [20] - Capital expenditures decreased to $127 million, while dividends paid increased to $209 million [20] - The company is committed to maintaining a strong balance sheet, with a net debt to trailing twelve-month Adjusted EBITDA ratio of approximately 3.3 times [20] Q&A Session Summary Question: What are the expectations for growth in 2026? - The company expects fiscal 2026 net sales to be between $5.163 billion and $5.267 billion, with adjusted EBITDA of $465 million to $495 million, and adjusted diluted EPS of $0.80 to $0.90 [24][25] Question: How is the integration of Simple Mills progressing? - The integration is progressing well, with expectations for double-digit sales growth driven by expanded distribution and innovation [24]

Financial Data and Key Metrics Changes - Net sales increased by 11% year-over-year, with a price mix increase of 70 basis points, while volume declined by 2.2% [16][17] - Gross margin as a percentage of sales decreased by 30 basis points to 48.5% compared to the same quarter last year [17] - GAAP diluted EPS for the quarter was a loss of $0.32, a decrease of $0.52 from the prior year, while adjusted diluted EPS was $0.22, consistent with the prior year [18][19] Business Line Data and Key Metrics Changes - The fresh packaged bread category saw Flowers maintain unit share, with Dave's Killer Bread gaining 20 basis points, while traditional loaf unit sales declined by 4% in Q4 [3][4] - The cake business improved revenues, with Flowers' cake unit sales growing by 5%, while the overall category unit sales declined by 3% [10] - Simple Mills contributed $57.5 million in net sales and $6.3 million to Adjusted EBITDA, indicating strong performance in the snacking categories [19][12] Market Data and Key Metrics Changes - The overall bread category experienced a 2% decline, while the food category saw a modest increase in units [4] - The competitive environment remained rational but challenging, with a 1.1% increase in average price per unit in the bread category [27] - Consumer behavior is shifting towards value-seeking, with increased sales in club stores and a decline in center store volumes [30] Company Strategy and Development Direction - The company is conducting a comprehensive review of operations to reignite top-line growth and expand margins, focusing on brand portfolio optimization and supply chain enhancements [4][5] - Investments in marketing and innovation are expected to create near-term margin pressure but are deemed essential for long-term growth [5][23] - The company aims to leverage leading brands to uncover growth opportunities in specialty premium loaf, sandwich buns, and breakfast segments [7][9] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2026, anticipating continued category headwinds, particularly in traditional loaf [22] - The company expects total sales to be down 180 basis points to up 20 basis points, with inflationary pressures impacting margins [22][23] - Management emphasized the importance of maintaining a strong balance sheet and managing capital structure prudently amid a challenging macro environment [20][21] Other Important Information - A non-cash impairment of $136 million was recognized due to a review of the brand portfolio, indicating a lower long-term outlook for certain brands [18][19] - The company is committed to enhancing margins through efficiency initiatives and strategic acquisitions, with a focus on better-for-you products [31][32] Q&A Session Summary Question: What are the expectations for 2026 sales growth? - The company expects fiscal 2026 net sales to be between $5.163 billion and $5.267 billion, with adjusted EBITDA of $465 million to $495 million, and adjusted diluted EPS of $0.80 to $0.90 [25][26] Question: How is the Simple Mills acquisition performing? - Simple Mills is expected to drive double-digit sales growth, supported by expanded distribution and innovation, despite higher costs impacting margins [25][30]

Financial Performance - Q3 2025 - Net sales increased by 30% to $1227 billion compared to the prior year[8] - Net income decreased by 392% to $395 million[8, 15] - Adjusted EBITDA decreased by 114% to $1181 million[8] - GAAP diluted EPS decreased by $012 to $019[8] - Adjusted diluted EPS decreased by $010 to $023[8] Sales Highlights - Q3 2025 - Branded Retail net sales increased by 69% due to the acquisition contribution, partly offset by volume declines and unfavorable price/mix[11] - Other net sales decreased by 38% due to unfavorable price/mix, partially offset by increased volume for non-retail items[11] Fiscal Year 2025 Guidance - Net Sales are projected to be between $5254 billion and $5306 billion[20] - Adjusted EBITDA is expected to be between $515 million and $532 million[20] - Adjusted diluted EPS is forecasted to be between $102 and $108[20] Market Share and Volume Trends - Flowers Fresh Packaged Breads dollar sales decreased by 29% and unit sales decreased by 18%[40] - Flowers Commercial Cake dollar sales increased by 10% and unit sales increased by 11%[43]

Financial Data and Key Metrics Changes - The overall bread category has declined by approximately 2.5% to 3% [12] - Traditional loaf segment, including honey wheats and white breads, has seen a decline of 5% to 6% [12] - The company has lowered its underlying 2025 guidance for both top and bottom lines due to challenges in the category and a less robust performance than expected in the first half [37][39] Business Line Data and Key Metrics Changes - The company is experiencing growth in its keto product line and brands like Dave's Killer Bread and Canyon [12] - The integration of Simple Mills has gone smoothly, with the brand performing in line with expectations despite tariff impacts [34][36] - Small loaves are performing well, with an increase in SKUs from three to six, catering to consumer preferences for reduced carb consumption and less waste [46][47] Market Data and Key Metrics Changes - The company is focusing on expanding distribution in the Midwest and Northeast, which are identified as growth markets [28] - The competitive landscape has seen new low-price competitors entering the market, prompting the company to address this with value offerings [25][26] Company Strategy and Development Direction - The company aims to innovate around the declining traditional bread segment by introducing differentiated products that meet consumer demands [15][19] - There is a strategic focus on better-for-you snacks and products, with significant innovation planned for 2026 [35][40] - The company is also exploring new shelf set tests with retailers to better organize product offerings [20][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current economic pressures on consumers, including inflation and job market concerns, which are impacting sales [4][6] - The company believes that while the bread category is challenged, it has historically navigated through such challenges and remains optimistic about future growth [80][81] - Management emphasizes the importance of brand strength and innovation to adapt to changing consumer preferences [83][84] Other Important Information - The company is undergoing an ERP transition, with plans to ramp up rollouts in the second half of the year [63][66] - Input costs are expected to rise in the second half, particularly for palm oil, eggs, and cocoa, which will impact margins [61][62] - The company is focused on deleveraging following the Simple Mills acquisition, with a high payout ratio being evaluated on a quarterly basis [72][75] Q&A Session Summary Question: What are the long-term expectations for the bread category? - Management expects the bread category to evolve, with a shift towards more differentiated items and a decline in traditional soft varieties [15][19] Question: How is the integration of Simple Mills progressing? - The integration has been smooth, with the brand performing well and expected to drive growth through innovation and distribution expansion [34][36] Question: What is the company's strategy regarding new low-price competitors? - The company is addressing the entry of low-price competitors by enhancing value offerings and leveraging brand strength [25][26] Question: How does the company plan to manage rising input costs? - The company will explore various strategies, including pricing adjustments, to maintain margins amid rising costs [33][61] Question: What is the outlook for advertising and marketing support? - The company plans to continue increasing brand support to drive awareness and household penetration, balancing advertising and promotional efforts [68][71]

Financial Performance - Net sales increased by 1.5% to $1.243 billion compared to the previous year, driven by the Simple Mills acquisition[8, 11] - Net income decreased by 12.8% to $58.4 million, primarily due to lower operating income and higher net interest expense[8, 15] - Adjusted EBITDA decreased by 4.0% to $137.7 million, with a margin of 11.1%, down 60 bps from the previous year's 11.7%[8, 9, 16] - GAAP diluted EPS decreased by $0.04 to $0.28, while adjusted diluted EPS decreased by $0.06 to $0.30[8] Sales Analysis - Branded Retail net sales increased by 5.0%, offset by volume declines and unfavorable price/mix[11] - Other net sales decreased by 4.9% due to softer volumes in store branded retail sales and non-retail sales from margin optimization strategies[11] - Volume decreased by 2.4%, and price/mix decreased by 1.2%[8] - The acquisition contributed to a 5.1% increase in net sales[8] Fiscal Year 2025 Guidance - Net sales are projected to be between $5.239 billion and $5.308 billion, including $218 million to $225 million from Simple Mills[20] - Adjusted EBITDA is expected to be between $512 million and $538 million, including $30 million to $33 million from Simple Mills[20] - Adjusted diluted EPS is projected to be between $1.00 and $1.10, including a negative impact of $0.08 to $0.07 from Simple Mills[20] Market Share and Trends - Branded dollar share decreased, while store branded dollar share increased, reflecting inflationary pressure on consumers[35] - Flowers' fresh packaged bread dollar sales and unit sales showed slight increases, with dollar sales up 0.2% and unit sales down 3.2%[41] - Flowers' commercial cake dollar sales and unit sales decreased, with dollar sales down 7.6% and unit sales down 10.0%[44]

Financial Data and Key Metrics Changes - Net sales increased by 1.5% year-over-year, with a price mix decline of 1.2% primarily related to the retail business [19] - Volume declined by 2.4%, largely due to decreases in traditional loaf bread, partially offset by improvements in branded cake, organic, and keto volumes [19] - Gross margin as a percentage of sales decreased by 110 basis points to 48.8% compared to the same quarter last year [20] - GAAP diluted EPS for the quarter was $0.28, a decrease of $0.04 from the prior year period [21] - Adjusted diluted EPS decreased by $0.06 to $0.30 [21] Business Line Data and Key Metrics Changes - Branded retail products accounted for 67% of sales in the quarter, up from 64% a year ago [3] - Bread sales volumes declined by 3%, while differentiated products like organic and keto saw sales increases of 3% and 4% respectively [4][5] - The Simple Mills acquisition contributed $61.4 million in net sales and $10.9 million to adjusted EBITDA [21] Market Data and Key Metrics Changes - The bread category underperformed the general food category, with volumes declining by 3% compared to a 1% decline in food overall [4] - Traditional loaf products saw a significant decline of 6% [4] - The competitive environment has intensified, particularly affecting the traditional loaf segment, which experienced a 7.9% decline in sales in the second quarter [30] Company Strategy and Development Direction - The company is focusing on innovation and acquisitions to align with consumer demand, particularly in higher-margin branded retail products [3][6] - Plans to leverage strong brands to expand into adjacent categories and capitalize on growth opportunities in differentiated products [5][6] - The company aims to maximize near-term results while supporting long-term growth through strategic initiatives [7][31] Management's Comments on Operating Environment and Future Outlook - The management noted persistent inflationary pressures impacting consumer confidence and purchasing behavior [26] - Expectations for 2025 results have been adjusted due to challenges in the traditional loaf category and increased competitive pressure [4][22] - The company remains confident in its financial position and anticipates benefits from shelf space gains and cost-saving initiatives in the second half of the year [23] Other Important Information - The integration of Simple Mills is progressing well, with strong performance in the natural cookies and crackers segments [16][18] - The company is implementing additional savings initiatives to offset top-line pressure and improve margins [15] - The company continues to focus on enhancing trade promotion capabilities and monitoring promotional spending [30] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

Financial Data and Key Metrics Changes - Net sales increased by 1.5% year-over-year, with a volume decline of 2.4% primarily due to traditional loaf bread [18][19] - Gross margin decreased by 110 basis points to 48.8% compared to the same quarter last year, driven by increased outside purchases and lower production volumes [19] - GAAP diluted EPS for the quarter was $0.28, a decrease of $0.04 from the prior year, while adjusted diluted EPS decreased by $0.06 to $0.30 [20] Business Line Data and Key Metrics Changes - Branded retail products accounted for 67% of sales, up from 64% a year ago, indicating a shift towards higher-margin products [3] - Bread sales volumes declined by 3%, with traditional loaf products down 6%, while differentiated products like organic and keto saw sales increases of 3% and 4% respectively [4][5] - The Simple Mills acquisition contributed $61.4 million in net sales and $10.9 million to adjusted EBITDA [20] Market Data and Key Metrics Changes - The bread category overall is under pressure, with a 3% decline in volumes compared to a 1% decline in the general food category [4] - The competitive environment has intensified, particularly affecting traditional loaf segments, which saw a 7.9% decline in sales [30] - Higher-income consumers are increasing their food and beverage spend, while lower-income consumers are more affected by price increases [28] Company Strategy and Development Direction - The company is focusing on innovation and M&A to align with consumer demand, particularly in healthier product segments [6][31] - The integration of Simple Mills is progressing well, enhancing the company's capabilities in the natural snacking category [16] - The company aims to maximize near-term results while supporting long-term growth through strategic initiatives [7][31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging economic environment and shifting consumer trends impacting the bread category [3][4] - The company is adjusting its 2025 financial outlook due to softness in traditional loaf products and increased competitive pressure [21][22] - Management remains confident in the long-term potential of their strategies despite current headwinds [32] Other Important Information - The company is implementing additional cost-saving initiatives to offset top-line pressures, including labor efficiencies [15] - Approximately 92% of key raw materials are covered for 2025, with a focus on minimizing volatility through historical hedging strategies [23] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

Financial Performance - Q1 2025 - Net sales decreased by 1.4% year-over-year to $1.554 billion, influenced by softer volumes and negative price/mix, but partially offset by the Simple Mills acquisition[8, 11] - Net income decreased by 27.4% year-over-year to $53.0 million, primarily due to lower operating income, higher net interest expense, and a higher income tax rate[8, 14] - Adjusted EBITDA increased by 1.6% year-over-year to $162.0 million, driven by improved gross margin and lower adjusted SD&A, partially offset by decreased net sales[8, 14] - GAAP diluted EPS decreased by $0.09 to $0.25, while adjusted diluted EPS decreased by $0.03 to $0.35[8] Sales Breakdown - Branded Retail net sales declined by 0.4% due to volume declines and unfavorable price/mix resulting from increased promotional activity, partially offset by the acquisition contribution[11] - Other net sales decreased by 3.3% due to softer volumes across most categories as inflationary pressure on consumers resulted in weaker away-from-home category sales[11] - Price/Mix had a -0.3% impact on total net sales, Volume had a -2.7% impact, and the Acquisition contributed +1.6%[8, 13] Fiscal Year 2025 Guidance - Net sales are projected to be between $5.297 billion and $5.395 billion, including $218 to $225 million from Simple Mills[19] - Adjusted EBITDA is expected to be between $534 million and $562 million, including $30 to $33 million from Simple Mills[19] - Adjusted diluted EPS is forecasted to be between $1.05 and $1.15, including a negative impact of ($0.08) to ($0.07) from Simple Mills[19]