August 06, 2020
THOMASVILLE, Ga., Aug. 6, 2020 /PRNewswire/ — Flowers Foods, Inc. (NYSE: FLO), producer of Nature’s Own, Dave’s Killer Bread, Wonder, Tastykake, and other bakery foods, today reported financial results for the company’s 12-week second quarter ended July 11, 2020.
Second Quarter Summary:
Compared to the prior year second quarter where applicable
- Sales increased 5.1% to $1.026 billion, reflecting the continued impact of the COVID-19 pandemic.
- Diluted EPS increased by $0.02 to $0.27.
- Adjusted diluted EPS(1) increased by $0.08 to $0.33.
(1) Adjusted for items affecting comparability. See reconciliations of non-GAAP measures in the financial statements following this release.
“I am pleased to report a record quarter in which we executed well and capitalized on the strong demand for our leading brands,” said Ryals McMullian, Flowers Foods’ president and CEO. “Our team continued to perform admirably in challenging circumstances, and I am grateful for their dedication and commitment. Their hard work combined with the flexibility of our bakery network have enabled us to continue serving our markets uninterrupted throughout the COVID-19 pandemic.”
McMullian added, “A key driver of our strong performance was the mix shift to branded retail products, which allowed us to leverage costs and increase margins. The COVID-19 pandemic was a significant driver of that shift this quarter, and we are actively working to maintain and expand that favorable mix going forward through our portfolio optimization initiatives.”
McMullian continued, “Looking to the second half of 2020, we are balancing the higher demand and positive mix shift with the increased costs and uncertainty caused by this new environment. We remain committed to our portfolio and supply chain optimization initiatives and our expectation to deliver approximately $10 million to $20 million of savings this year. As part of our ongoing efforts to streamline operations, and to ensure we have the right resources in place to sustain long-term growth, we announced an organizational restructuring in July to further reduce the complexity of our business, improve margins, and ultimately unleash the full potential of our brands and innovation efforts. By continuing to strengthen our powerful brands, we expect to expand their market leading share positions and better-utilize our supply chain network with the goal of driving strong shareholder returns over the long-term.”