Flowers Foods, Inc. released its financial results today for the fiscal year 2023, spanning 52 weeks, and the fourth quarter, which ended on December 30, 2023.
Fiscal 2023 Highlights:
- Sales surged by 5.9% to reach a milestone of $5.091 billion.
- Net income saw a decrease of 46.0%, amounting to $123.4 million, primarily attributed to heightened legal settlement expenses. Adjusted net income(1) experienced a decrease of 5.4%, totaling $256.3 million.
- Adjusted EBITDA(1) slightly decreased by 0.1% to $501.7 million, constituting 9.9% of sales, marking a 50-basis point decrease.
- Diluted EPS declined by $0.49 to $0.58. Adjusted diluted EPS(1) also declined by $0.07 to $1.20.
Fourth Quarter Highlights:
- Sales for the fourth quarter surged by 4.3% to achieve a new record of $1.129 billion.
- Net income experienced a decrease of 26.6%, totaling $35.7 million, primarily due to increased selling, distribution, and administrative expenses, along with depreciation and amortization expenses. Adjusted net income(1) decreased by 11.2% to $42.7 million.
- Adjusted EBITDA(1) saw a slight increase of 0.1% to $96.3 million, representing 8.5% of sales, indicating a 40-basis point decrease.
- Diluted EPS decreased by $0.06 to $0.17. Adjusted diluted EPS(1) decreased by $0.03 to $0.20.
Remarks from the Chairman and CEO, Ryals McMullian: “Flowers’ performance in the fourth quarter and throughout 2023 highlights the resilience of our leading brands, as evidenced by record-breaking sales figures despite challenging market conditions. Our volume trends exhibited improvement over the year, and in the fourth quarter, we gained both dollar and unit share for the first time since early 2022, a testament to the dedication of our team and our investments in innovation and marketing. Notably, Dave’s Killer Bread achieved a milestone of $1 billion in retail sales for 2023. Furthermore, our strategic portfolio approach enabled significant margin improvements in our cake, foodservice, and private label segments.
“As we look ahead to 2024, we are confident in our ability to navigate the complexities of our industry successfully. We anticipate benefits from moderating commodity costs, positive pricing strategies, and cost-saving initiatives. While our promotional efforts are yielding improved returns, the competitive landscape remains rational, with promotional activities significantly subdued compared to pre-pandemic levels. We remain steadfast in our commitment to innovation, marketing, and the transition of our distribution model in California. Although these initiatives may present short-term challenges, we believe they will ultimately contribute to enhancing shareholder value. Our primary focus remains on fostering sustainable growth aligned with our long-term financial objectives
