February 06, 2019
THOMASVILLE, Ga., Feb. 6, 2019 /PRNewswire/ — Flowers Foods, Inc. (NYSE: FLO), producer of Nature’s Own, Wonder, Tastykake, Dave’s Killer Bread, and other bakery foods, today reported financial results for the company’s 12-week fourth quarter and 52-week full year ended December 29, 2018.
Fiscal 2018 Summary:
Compared to the prior year where applicable
- Sales increased 0.8% to $3.952 billion.
- Diluted EPS increased $0.03 to $0.74.
- Adjusted diluted EPS(1) increased $0.05 to $0.94.
- Net income increased 4.7% to $157.2 million.
- Adjusted net income(1) increased 5.8% to $198.1 million.
- Adjusted EBITDA(2) decreased 8.5% to $411.5 million.
- Adjusted EBITDA(2) margin decreased 110 basis points to 10.4% of sales.
Fourth Quarter Summary:
Compared to the prior year fourth quarter where applicable
- Sales increased 0.8% to $880.7 million.
- Diluted EPS decreased $0.27 to $0.10.
- Adjusted diluted EPS(1) decreased $0.01 to $0.16.
- Net income decreased $57.7 million to $20.8 million.
- Adjusted net income(1) decreased 4.6% to $34.1 million.
- Adjusted EBITDA(2) decreased 14.1% to $78.1 million.
- Adjusted EBITDA(2) margin decreased 150 basis points to 8.9% of sales.
(1) Adjusted for items affecting comparability. See reconciliations of non-GAAP measures in the financial statements following this release.
(2) Earnings before Interest, Taxes, Depreciation and Amortization, adjusted for certain items affecting comparability. See reconciliations of non-GAAP measures in the financial statements following this release.
“We finished 2018 with solid top-line momentum. Our brand portfolio once again achieved record market share in the fourth quarter, driven by growth from Dave’s Killer Bread, Nature’s Own, and Wonder,” said Allen Shiver, Flowers Foods president and CEO. “Despite taking pricing actions and realizing cost savings under Project Centennial, we were not immune to the inflationary pressures from commodities, transportation and other sector headwinds, which negatively impacted our results for the quarter.”
Mr. Shiver continued, “In 2019, we expect Dave’s Killer Bread, Nature’s Own, and Wonder to drive sales growth, along with the rollout of Canyon Bakehouse across our distribution network. We are continuing to urgently address inflationary pressures through revenue management and productivity initiatives. We also are accelerating key supply chain optimization initiatives intended to drive productivity and reduce fixed costs. Our financial position is strong, and we remain confident that we will be able to grow shareholder value by profitably growing differentiated brands, improving manufacturing efficiencies, and providing excellent service to the marketplace.”