Flo sees FY sales $5.24B to $5.31B, saw about $5.30B to $5.40B

Flo sees FY sales $5.24B to $5.31B, saw about $5.30B to $5.40B

Flowers Foods, Inc. (NYSE: FLO) reported its second quarter 2025 results on August 15, 2025, with a focus on the company's performance and future outlook. The company reported net sales of $1.243 billion, a 1.5% increase year-over-year, driven by the Simple Mills acquisition. Net income decreased to $58.4 million, a 12.8% decline, primarily due to increased workforce-related costs and higher interest expense. Adjusted net income decreased by 16.0% to $63.4 million. Adjusted EBITDA decreased by 4.0% to $137.7 million, representing 11.1% of net sales. Diluted EPS decreased to $0.28, while adjusted diluted EPS fell to $0.30.

Chairman and CEO Ryals McMullian commented on the results, highlighting the impact of macroeconomic uncertainty and shifting consumer demand on the bread category. He emphasized the company's strategy of investing in innovation and mergers and acquisitions to align with consumer demand for better-for-you and value-oriented products.

For the full fiscal year 2025, Flowers Foods expects net sales of approximately $5.239 billion to $5.308 billion, representing 2.7% to 4.0% growth compared to the prior year. Excluding the Simple Mills acquisition, net sales are expected to be approximately $5.021 billion to $5.083 billion, representing a change of -1.6% to -0.4%. Adjusted EBITDA is expected to be in the range of approximately $512 million to $538 million, while adjusted diluted EPS is expected to be approximately $1.00 to $1.10.

The company's outlook is based on several assumptions, including depreciation and amortization of approximately $168 million to $172 million, net interest expense of approximately $58 million to $62 million, an effective tax rate of approximately 25%, and capital expenditures of approximately $135 million to $145 million.

Flowers Foods has faced challenges in the past, with a history of missing Wall Street's revenue estimates. However, the company's recent performance and outlook suggest a focus on strategic initiatives to drive growth and improve profitability.

References:
[1] https://finance.yahoo.com/news/flowers-foods-flo-q2-earnings-030052163.html
[2] https://www.prnewswire.com/news-releases/flowers-foods-inc-reports-second-quarter-2025-results-302530576.html