Flowers Foods, Inc. (NYSE:FLO) Beats Market Expectations

Flowers Foods, Inc. (NYSE:FLO) stock rose 2.42% (As on May 20, 11:08:59 AM UTC-4, Source: Google Finance) after the company posted higher than expected results for the first quarter of FY 22. Adjusted net income increased 6.3% to $93.1 million. Adjusted EBITDA increased 2.4% to a quarter-record $165.5 million, representing 11.5% of sales, a 90-basis point decrease. Branded retail sales increased $94.4 million or 11.0% to $956.1 million, store branded retail sales increased $11.1 million or 6.9% to $173.6 million, while non-retail and other sales increased $28.2 million or 10.2% to $306.2 million. Branded retail sales increased primarily due to higher prices intended to offset inflationary pressures, and improved promotional efficiency, partially offset by volume declines in branded cake items partly due to supply constraints. Store branded retail sales increased primarily due to higher prices intended to offset inflationary pressures, partially offset by volume declines as consumer purchasing continued to shift to branded retail products. 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, supply chain disruptions, and targeted sales rationalization to improve profitability. For the first quarter of fiscal 2022, cash flow from operating activities increased by $26.2 million to $124.2 million, capital expenditures increased $23.2 million to $50.5 million, and dividends paid to shareholders increased $4.2 million to $46.7 million. Cash and cash equivalents were $205.1 million at the end of the first quarter of fiscal 2022. There are 5.4 million shares that remain authorized for repurchase under the company’s current share repurchase plan.

FLO in the first quarter of FY 22 has reported the adjusted earnings per share of 44 cents, beating the analysts’ estimates for the adjusted earnings per share of 38 cents, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 10.3 percent to $1.44 billion in the first quarter of FY 22, beating the analysts’ estimates for revenue of $1.4 billion.

Flowers Foods expects full-year earnings to be $1.20 to $1.30 per share, with revenue expected to be in the range of $4.76 billion to $4.85 billion. For fiscal 2022, the company expects Depreciation and amortization to be in the range of $135 million to $145 million, Net interest expense to be of approximately $7 million and Capital expenditures in the range of $150 million to $160 million, with $60 million to $70 million related to the ERP upgrade.

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