Flowers Foods' Q3 2024: A Closer Look at Earnings and Growth
Saturday, Nov 9, 2024 12:44 am ET
Flowers Foods, Inc. (NYSE: FLO) reported its third-quarter 2024 earnings on November 8, 2024, revealing a strong performance driven by cost initiatives and a strategic portfolio approach. The company's leading brands and successful execution of cost initiatives and portfolio strategy led to better-than-expected earnings, with adjusted EBITDA increasing 10.0% to $133.3 million, representing 11.2% of net sales, a 110-basis point increase.
Key drivers of growth included a decrease in legal settlements and related costs, which contributed to a $111.7 million increase in net income. Additionally, the company's cost initiatives and portfolio strategy enhanced performance in the away-from-home business, improving profitability of existing business and adding higher margin new accounts.
Despite headwinds from a pressured consumer and promotional behavior, Flowers Foods outpaced the bread category, growing tracked channel sales in both units and dollars. The company's financial outlook for the 52-week fiscal 2024 reflects greater certainty as it enters the fourth quarter, with expectations for net sales growth of 0.5% to 1.1% compared to the prior year.
Investors should take note of Flowers Foods' strong performance in Q3 2024, as the company's cost initiatives and portfolio strategy have driven growth and improved profitability. With a focus on leading brands and strategic positioning, Flowers Foods presents an attractive investment opportunity in the baked goods sector.
Word count: 598