Flowers Foods, Inc. Reports First Quarter 2026 Results

Flowers Foods, Inc. (NYSE: FLO) today reported financial results for the company's 16-week first quarter ended April 25, 2026. First Quarter Summary:Compared to the prior year first quarter where applicable Net sales(1) increased 1.1% to $1.572 billion as the Simple Mills acquisition and pricing/mix more than offset volume declines. Net income decreased 20.6% to $42.1 million, representing 2.7% of sales, a 70-basis point decrease, primarily due to a challenging consumer environment and higher interest expense, partly offset by the prior year plant closure costs and moderating ingredient costs. Adjusted net income(2) decreased 17.4% to $60.9 million. Adjusted EBITDA(2) decreased 1.8% to $159.0 million, representing 10.1% of net sales, a 30-basis point decrease. Diluted EPS decreased $0.05 to $0.20. Adjusted diluted EPS(2) decreased $0.06 to $0.29. Quarterly Cash Dividend DeclaredThe company today announced that its board of directors has declared a quarterly dividend of $0.1250 per share, representing the 95th consecutive quarterly dividend paid by the company and is payable on June 26, 2026, to shareholders of record on June 12, 2026. Chairman and CEO Remarks:"Flowers' first quarter reflects our team's disciplined cost management, helping us deliver financial performance in-line with expectations despite softer top-line results driven by ongoing challenging macroeconomic conditions impacting the category," said Ryals McMullian, chairman and CEO of Flowers Foods. "At the same time, we've made meaningful progress in strengthening our long-term position by evolving our product portfolio to better meet consumers' needs, including the relaunch of Nature's Own, now with simple ingredients and Non-GMO Project Verified certification – a mainstream category first. While we continue to approach the balance of the year with appropriate caution given the ongoing challenging external environment, we remain confident in the strength of our brands, robust supply chain and delivery network, growing presence in the better-for-you categories, and improving balance sheet. These factors give us confidence we are well positioned to navigate headwinds and drive long-term shareholder value." "The comprehensive review of our brand portfolio, supply chain, and financial strategy announced last quarter is well underway and helping to further clarify how we allocate resources to strengthen our position and support the growth of our strongest brands," McMullian added. "As part of this effort, we reset our quarterly dividend to $0.125 per share, or $0.50 per share on an annualized basis, allowing us to prioritize meaningful debt reduction while continuing to invest behind the brands, innovation, and capabilities that we believe will drive sustainable above-category growth over time. As we move forward and execute our strategy, we expect dividends to remain an important component of our overall shareholder value proposition. With respect to our 2026 outlook, we are reaffirming guidance and our team remains focused on disciplined execution, managing the areas of the business we can directly influence and delivering against our strategic and financial objectives for the year." For the 52-week Fiscal 2026, the Company Expects: Net sales of approximately $5.163 billion to $5.267 billion, representing a -1.8% to 0.2% change compared to the prior year. Adjusted EBITDA(3) in the range of approximately $465 million to $495 million. Adjusted diluted EPS(2) of approximately $0.80 to $0.90. The company's outlook is based on the following assumptions: Depreciation and amortization of approximately $165 million to $170 million. Net interest expense of approximately $65 million to $70 million. An effective tax rate of approximately 26%. Weighted average diluted share count for the year of approximately 213.5 million shares. Capital expenditures of approximately $115 million to $125 million. Matters Affecting Comparability: Reconciliation of Earnings per Share to Adjusted Earnings per Share For the 16-Week Period Ended For the 16-WeekPeriod Ended April 25, 2026 April 19, 2025 Net income per diluted common share $ 0.20 $ 0.25 Business process improvement costs NM NM Plant closure costs and impairment of assets — 0.03 Restructuring charges 0.01 NM Restructuring-related implementation costs 0.03 0.02 Acquisition and integration-related costs NM (a) 0.05 Legal settlements and related costs 0.05 NM Adjusted net income per diluted common share $ 0.29 $ 0.35 (a) Deductible tax impact of prior period acquisition-related costs that impacted this period by $0.01 per share. NM - not meaningful. Certain amounts may not add due to rounding. Consolidated First Quarter Operating HighlightsCompared to the prior year first quarter where applicable Net sales increased 1.1% to $1.572 billion. Pricing/mix(4) increased 2.1%, volume(5) declined 3.3%, and the Simple Mills acquisition, which cycled on February 21, 2026, added 2.3%. Branded Retail net sales increased $34.1 million, or 3.4%, to $1.045 billion due to favorable pricing/mix and acquisition contribution, partially offset by volume declines. Pricing/mix(4) rose 4.0%, volume(5) decreased 4.2%, and the Simple Mills acquisition contributed 3.6%. Other net sales decreased $16.7 million, or 3.1%, to $526.2 million due to inflationary pressure on consumer spending and from executing margin optimization strategies. Pricing/mix(4) decreased 1.2% and volume(5) declined 1.9%. Materials, supplies, labor, and other production costs (exclusive of depreciation and amortization) were 50.6% of net sales, a 50-basis point increase. These costs increased as a percentage of net sales mostly due to an increase in outside purchases of product (sales with no associated ingredient costs) and lower production volumes. This increase was partially offset by moderating ingredient costs. Selling, distribution, and administrative (SD&A) expenses were 40.9% of net sales, a 10-basis point increase. SD&A expenses increased as a percentage of net sales due to higher workforce-related costs and greater legal settlements and restructuring implementation costs, partially offset by lower distributor distribution fees and prior year acquisition costs. Excluding matters affecting comparability, adjusted SD&A(2) was 39.3% of net sales, a 20-basis point decrease. Plant closure costs and impairment of assets decreased $7.4 million due to the closure of a bakery in the first quarter of 2025. Depreciation and amortization (D&A) expenses were $51.8 million or 3.3% of net sales, a 10-basis point increase. Net interest expense increased $5.6 million primarily due to higher interest expense from the issuance of debt to fund the Simple Mills acquisition and related fees and expenses. Net income decreased 20.6% to $42.1 million, representing 2.7% of sales, a 70-basis point decrease, and diluted EPS decreased $0.05 to $0.20. Adjusted net income(2) decreased 17.4% to $60.9 million and adjusted diluted EPS(2) decreased $0.06 to $0.29. Adjusted EBITDA(2) decreased 1.8% to $159.0 million, representing 10.1% of net sales, a 30-basis point decrease. Cash Flow, Capital Allocation, and Capital Return In the first quarter, cash flow from operating activities decreased $27.8 million to $107.9 million, capital expenditures decreased $4.9 million to $20.6 million, and dividends paid to shareholders increased $2.1 million to $54.4 million. Cash and cash equivalents were $11.5 million at quarter end. (1) Any reference to sales refers to net sales inclusive of allowances and deductions against gross sales for variable consideration and consideration payable to customers(2) Adjusted for items affecting comparability. See reconciliations of non-GAAP measures in the financial statements following this release. Earnings are net income. EBITDA and Adjusted EBITDA are reconciled to net income.(3) No reconciliation of the forecasted range for adjusted EBITDA to net income for the 52-week Fiscal 2026 is included in this press release because the company is unable to quantify certain amounts that would be required to be included in the GAAP measure without unreasonable efforts. In addition, the company believes such reconciliation would imply a degree of precision that would be confusing or misleading to investors. For the same reasons, the company is unable to address the probable significance of the unavailable information, which could be material to future results.(4) Calculated as (current year period units X change in price per unit) / prior year period net sales dollars(5) Calculated as (prior year period price per unit X change in units) / prior year period net sales dollars Pre-Recorded Management Remarks and Question and Answer WebcastIn conjunction with this release, Flowers Foods will post pre-recorded management remarks and a supporting slide presentation on the investors page of flowersfoods.com. The company will host a live question and answer webcast at 8:30 a.m. Eastern Time on May 22, 2026, which will be archived on the investors page along with the other related materials.... Read more

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