Flowers Foods Inc (NYSE:FLO) stock plunges 9.64% (As on May 19, 11:54:07 AM UTC-4, Source: Google Finance) after the company reported mixed first-quarter fiscal 2023 results, with the top line increasing year over year and the bottom line declining. For first-quarter fiscal 2023, cash flow from operating activities came in at $58 million and capital expenditures amounted to $34 million. The company paid dividends worth $49.1 million. During the quarter, the company paid dividends worth $49.1 million. Capital expenditures are projected in the range of $140-$150 million for fiscal 2023.

Moreover, Materials, supplies, labor and other production costs (excluding depreciation and amortization) escalated by 170 basis points (bps) to 52.2% of sales on rising input cost inflation. Selling, distribution and administrative (SD&A) expenses came in at 38.6% of sales, in line with the year-ago period’s levels, courtesy of sales rise in excess of wage inflation, reduced incentive compensation and lower distributor distribution fees as a percent of sales. These were somewhat offset by increased marketing expenses and acquisition-related costs.

FLO in the first quarter of FY 23 has reported the adjusted earnings per share of 38 cents, beating the analysts’ estimates for the adjusted earnings per share of 36 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 6.9 percent to $1.53 billion in the first quarter of FY 23, missing the analysts’ estimates for revenue of $1.57 billion. The pricing/mix remained favorable by 13.6%, while volumes fell 7.3%. Contributions from the Papa Pita buyout, to the tune of 0.6% also aided top-line growth. Branded retail sales grew 2.5% to $979.3 million, mainly on improved prices undertaken to counter inflationary pressures. These were somewhat offset by volume declines. Other sales rose 15.6% to $555.1 million on favorable pricing, although it was partially offset by volume declines. Adjusted EBITDA declined 8.7% to $151.1 million. The adjusted EBITDA margin was 9.8%, which contracted 170 bps.

Management lowered its guidance for fiscal 2023. The company expects sales in the range of $5.086- $5.141 billion, suggesting a rise of 5.8-7.0% year over year. The company projected sales in the band of $5.176-$5.242 billion, suggesting a rise of 7.7-9.1% year over year. Adjusted EBITDA is likely to be in the range of $494-$528 million compared with the earlier view of around $513-$543 million. For fiscal 2023, the adjusted EPS is envisioned in the range of $1.15-$1.25 compared with the estimate of $1.20-$1.30 projected earlier.