Flowers Foods, Inc. (NYSE:FLO) shares are trading lower on Friday.
The company reported a second-quarter adjusted earnings per share of 30 cents, which is in line with the analyst consensus estimate. Quarterly sales of $1.242 billion (+1.5% year over year) missed the Street view of $1.266 billion.
“Macroeconomic uncertainty and shifting consumer demand have continued to pressure the bread category,” said Ryals McMullian, chairman and CEO of Flowers Foods.
Also Read: US Retail Sales Rise In July As Consumers Spend Despite Tariffs
Pricing/mix decreased 1.2% in the quarter under review, while volume declined 2.4%.
Net income decreased 12.8% to $58.4 million, representing 4.7% of sales, an 80-basis point decrease, primarily due to greater outside purchases, increased workforce-related costs, and higher interest expense.
Adjusted net income decreased 16% to $63.4 million.
Adjusted EBITDA decreased 4% to $137.7 million. Adjusted EBITDA margin was 11.1% of net sales, down 60 basis points.
“We are proactively working to mitigate this weakness with disciplined cost savings efforts,” the CEO added.
Simple Mills contributed $61.4 million in net sales, with a net loss of $2.1 million.
The company exited the quarter with cash and equivalents worth $11.045 million.
Long-term debt as of quarter-end expanded to $1.749 billion, compared with $1.021 billion as of December 28, 2024.
Outlook
Flowers Foods cut its FY2025 adjusted EPS forecast to $1.00–$1.10, down from its prior view of $1.05–$1.15. The revised outlook compares with the consensus estimate of $1.09.
The company also lowered its FY2025 sales guidance to a range of $5.021 billion–$5.083 billion from $5.079 billion–$5.170 billion. This new sales forecast falls short of the Street’s expectation of $5.310 billion.
Price Action: FLO shares are trading lower by 2.63% to $16.11 at last check Friday.
Read Next:
Photo by Kritchai7752 via Shutterstock
