Flowers Foods Announces 2024 Financial Performance Highlights
Flowers Foods, Inc. Reports Fourth Quarter and Full Year Financial Results
Flowers Foods, Inc. (NYSE: FLO) has released its financial results for the fourth quarter and the complete fiscal year. The company reported significant insights that reflect both challenges and strategic growth initiatives aimed at adapting to the changing economic landscape.
Fourth Quarter Financial Overview
During the fourth quarter, Flowers experienced a 1.6% decline in net sales, totaling $1.111 billion. While pricing and product mix positively contributed to revenue, declines in volume surpassed those gains. Despite this setback, net income saw a robust increase of 20.9%, reaching $43.1 million, which is 3.9% of total sales—a notable improvement. The adjusted net income was reported at $46.4 million, marking an 8.7% rise compared to the previous year.
Fiscal Year 2024 Performance
For the entire fiscal year, Flowers Foods recorded net sales of $5.103 billion, showing a marginal increase of 0.2%. This growth was primarily driven by favorable pricing and the acquisition of Papa Pita, which mitigated the overall decline in volume. The company achieved a remarkable 101% increase in net income, totaling $248.1 million, driven by operational efficiencies and reduced legal expenses. Adjusted net income for the year stood at $271.6 million, reflecting a 6.0% increase year-over-year.
CEO Comments on Company Strategy
Ryals McMullian, Chairman and CEO of Flowers, commented on the company’s performance: "Our effective execution of strategic initiatives significantly bolstered adjusted EPS growth through 2024, showcasing our resilience in a challenging market. Continued investments in innovation and in-store efficiencies have helped us maintain robust market share despite revenue shortfalls. Our operational margins have been enhanced by improved pricing strategies and the acquisition of high-margin accounts within our away-from-home segment. We anticipate sustained operational execution as we move into 2025, with early results benefiting from our new business wins and adjusted pricing initiatives, alongside declining commodity costs."
Looking Ahead to Fiscal Year 2025
Flowers Foods expects net sales for the 53-week fiscal year 2025 to fall between $5.403 billion and $5.487 billion, translating to growth of approximately 5.9% to 7.5%. Without considering the impacts of the recent Simple Mills acquisition, the company forecasts sales growth between 1.5% and 3.0%. The anticipated financial metrics include an adjusted EBITDA between $560 million to $591 million, with adjusted diluted EPS projected between $1.11 to $1.24—taking into account dilution from the Simple Mills acquisition.
Frequently Asked Questions
1. What were the main highlights of Flowers Foods' fourth-quarter financial results?
Flowers Foods reported a 1.6% decrease in net sales, but net income increased by 20.9% to $43.1 million, driven by operational efficiencies and cost reductions.
2. How did the company perform over the entire fiscal year 2024?
For fiscal year 2024, the company achieved $5.103 billion in net sales and a 101% increase in net income to $248.1 million, largely due to improved pricing strategies and reduced operational costs.
3. What strategies did Flowers Foods implement to grow in 2024?
The company focused on innovations and optimized its non-retail business segment while managing ingredient costs effectively to maintain profitability despite volume declines.
4. What is Flowers Foods' outlook for fiscal year 2025?
The company anticipates a growth in net sales between $5.403 billion and $5.487 billion, and an adjusted EBITDA range of $560 million to $591 million for fiscal year 2025.
5. Does Flowers Foods have ongoing acquisitions?
Yes, Flowers Foods is focused on the pending acquisition of Simple Mills, which is expected to contribute positively to adjusted EBITDA in 2025, although it may dilute adjusted EPS initially.
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