Flowers Foods Q2 2025 Sales Rise 1.5 to 1.243 Billion But Net Income Falls 12.8 to 58.4 Million

Flowers Foods, Inc. (NYSE: FLO) reported mixed second-quarter 2025 results, with a 1.5% increase in net sales to $1.243 billion driven by the acquisition of Simple Mills, but a 12.8% decline in net income to $58.4 million. Adjusted net income also fell by 16.0% to $63.4 million, reflecting higher workforce and interest expenses. The company reported a diluted EPS of $0.28 and an adjusted diluted EPS of $0.30, both slightly beating the expected $0.29 [1]. Adjusted EBITDA decreased by 4.0% to $137.7 million, or 11.1% of net sales, a 60-basis point decline year-over-year. While Simple Mills added $61.4 million in sales and $10.9 million in adjusted EBITDA, it also contributed a $2.1 million net loss and a $0.01 negative impact on diluted EPS [1].

Flowers Foods fell short of the expected $1.27 billion in revenue for the quarter, primarily due to weaker performance in traditional loaf sales and heightened competition. The company anticipates these challenges will persist through the remainder of 2025. In response, it has revised its full-year guidance downward. The company now forecasts net sales of $5.239 billion to $5.308 billion, representing growth of 2.7% to 4.0% year-over-year, compared to a previous range of $5.297 billion to $5.395 billion. Excluding the impact of the Simple Mills acquisition, net sales are projected to decline by -1.6% to -0.4% [1].

For adjusted EBITDA, Flowers Foods now projects $512 million to $538 million for the year, down from the prior range of $534 million to $562 million. Excluding Simple Mills, adjusted EBITDA is expected to fall between $482 million and $505 million. The acquisition is anticipated to contribute $30 million to $33 million in adjusted EBITDA, while the 53rd week of the fiscal year is expected to add $5 million to $7 million [1]. Adjusted diluted EPS for the full year is now forecasted at $1.00 to $1.10, down from a previous range of $1.05 to $1.15 [1]. Excluding the impact of the acquisition, adjusted diluted EPS is expected to range between $1.08 and $1.17, with the acquisition dragging down earnings by $0.08 to $0.07 and the 53rd week expected to add $0.02.

The company remains focused on cost discipline and strategic investments in innovation and M&A to align its portfolio with consumer preferences. However, the mixed results highlight the difficulty of sustaining profitability in a cost-sensitive and competitive market [1]. While the company has reported modest sales growth, profit margin compression and a revised guidance underscore its near-term challenges.

Investor reaction has been mixed, with shares showing premarket volatility as broader market conditions remain uncertain. Analysts note the company’s resilience in maintaining sales growth but caution that the widening gap between revenue and profit remains a concern [2]. The revised outlook contrasts with the strong earnings performance of many S&P 500 peers, suggesting that Flowers Foods’ challenges may be more internal or industry-specific [3].

Source:

[1] https://coinmarketcap.com/community/articles/689f190627535303f8990cc9/

[2] https://www.stocktitan.net/news/FLO/flowers-foods-inc-reports-second-quarter-2025-qky612kbpv8g.html

[3] https://www.gurufocus.com/news/3064280/flowers-foods-inc-reports-second-quarter-2025-results-flo-stock-news