Flowers Foods, Inc. (NYSE:FLO) Beats Earnings Estimates

Flowers Foods, Inc. (NYSE:FLO), producer of Nature’s OwnDave’s Killer BreadWonder, Canyon Bakehouse, Tastykake, and other bakery foods,  stock rose 0.47% (As on August 12, 11:44:19 AM UTC-4, Source: Google Finance) after the company beats earnings estimates for the second quarter of FY 22. Adjusted net income decreased 5.2% to $65.2 million. Adjusted EBITDA decreased 1.8% to $120.0 million, representing 10.6% of sales, a 140-basis point decrease. Branded retail sales increased $61.4 million or 9.1% to $735.9 million, store branded retail sales increased $26.2 million or 20.0% to $157.2 million, while non-retail and other sales increased $24.2 million or 11.4% to $235.9 million. Branded retail sales increased due to higher prices intended to offset inflationary pressures, partially offset by volume declines and sales mix reversion. Store branded retail sales increased primarily due to higher prices intended to offset inflationary pressures. Volumes were relatively flat as positive growth from sales mix shifts was offset by targeted sales rationalization and packaging shortages. Non-retail and other sales increased primarily due to higher prices intended to offset inflationary pressures, partially offset by volume declines in fast food and co-manufactured items. Materials, supplies, labor, and other production costs (exclusive of depreciation and amortization) were 51.9% of sales, a 240-basis point increase. These costs increased as a percentage of sales due to higher ingredient and packaging costs, partly offset by higher sales that leveraged labor expenses, and timing differences in the sell-through of product inventories. Year-to-date, through the end of the second quarter of fiscal 2022, cash flow from operating activities decreased by $39.6 million to $183.8 million, capital expenditures increased $39.6 million to $97.9 million, and dividends paid to shareholders increased $6.4 million to $93.4 million. Cash and cash equivalents were $162.5 million at the end of the second quarter of fiscal 2022.

FLO in the second quarter of FY 22 has reported the adjusted earnings per share of 31 cents, beating the analysts’ estimates for the adjusted earnings per share of 27 cents, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 11 percent to $1.13 billion in the second quarter of FY 22, which is inline with the analysts’ estimates for revenue of $1.13 billion.

Flowers Foods expects full-year earnings to be in the range of $1.25 to $1.30 per share, with revenue expects to be in the range of $4.76 billion to $4.85 billion. FY 22 capital expenditures is expected to be in the range of $150 million to $160 million, with $60 million to $70 million related to the ERP upgrade.

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